Charlie Munger: Waiting for “good ball”

Formerly the richest man in the world, the “stock god” Warren Buffett is the most common person to be with him, Charlie Munger, who has been with him for more than 40 years. Charlie Munger and Buffett, the heads of two Berkshires, have used the 40 years to achieve a 20,000-fold increase in the company’s valuation, a magnificent miracle in business history.

Charlie’s success has a routine to find. He “can have today, relying on the opportunity to not chase mediocrity”.

Ted is a long-time athlete of Charlie. He is the only baseball player who has played 400 hits in a single season in the past few decades. This athlete is not a so-called genius. He only pursues a principle: the hit zone is divided into 77 large baseballs. Only when the ball falls into what he thinks is the “best” grid, he will swing.

In the face of something you really like, you need to act according to discipline. Charlie stole this technique and used it in the securities investment industry.

Most of the time, Charlie is silently observing the market and doing nothing. So quietly watching, every once in a while, Charlie will find a “good ball” that is very slow, straight and straight in the middle of his favorite plaid. At that time, Charlie only did one thing, and that was to use his power to make a full effort. In addition to improving the investment success rate, it can also make better use of one’s energy.

Spending a capricious swing will consume your energy. When the “good ball” really comes, you can’t use all the capital to attack. The same is true of life. When you turn around a valuable thing, the whole earth will turn around you. As you move around the earth, the whole world may ruthlessly abandon you.