Munger's Investment Checklist: Great investing follows principles in nine categories: Risk, Independence, Preparation, Rigor, Allocation, Patience, Decisiveness, Change, and Focus.
Checklists minimize errors. Munger organizes his investment principles into nine themes:
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Risk: Start by measuring risk, especially reputational. Avoid questionable characters. Shun permanent loss.
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Independence: Just because others agree or disagree doesn't make you right or wrong. Only the correctness of your analysis matters.
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Preparation: The only way to win is to work, work, work, and hope for a few insights. The will to prepare beats the will to win.
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Analytic Rigor: Determine value apart from price, progress apart from activity. Invert, always invert.
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Allocation: Your number one job. The best use is measured by the next best use. When odds favor you heavily, bet big.
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Patience: Resist the bias to act. Compound interest is the eighth wonder. Never interrupt it unnecessarily.
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Decisiveness: When circumstances are right, act with conviction. Opportunity meeting the prepared mind—that's the game.
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Change: Accept unremovable complexity. Challenge your best-loved ideas. Recognize reality, especially when you don't like it.
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Focus: Keep it simple. Reputation and integrity are your most valuable assets. Face your big troubles directly.
These apply beyond investing. They're a framework for any high-stakes decision.
You can find more details here: Chapter Three.