Charlie Munger's "12 Rules for Life Wisdom"

Charlie Munger's "12 Rules for Life Wisdom":

1. Maintain lifelong learning

"I have never seen a smart person who doesn't read, never."

2. Be extremely diligent

"The only way to win is to work, work, work, work and hope for a little insight."

3. The secret of winners

You don't need to understand every industry, just specialize (invest) in a few areas.

4. The power of interest

"If you really want to excel in a certain field, you must have a strong interest. I can force myself to do many things well, but I cannot do things that I am not interested in exceptionally well. To some extent, you are similar to me. So if given the opportunity, you should find a way to do the things that you have a strong interest in" (or find a way to develop a strong interest in the things you have to do).

5. Only strive within your circle of competence

* Never invest in industries that you don't understand.

* Financial freedom is not achieved through frequent attacks but through several key strikes.

"Admitting your ignorance is the beginning of wisdom. Act (or invest) only within your clearly defined circle of competence."

6. Think inversely

"If only I knew where I would die so that I could never go there."

"When young people ask: How can one live happily? Munger answers: First, don't do drugs or cross roads recklessly or contract AIDS..."

7. Don't feel sorry for yourself

"Self-pity always has negative effects; it is a wrong mindset. If you can avoid it, your advantage will be much greater than others', or almost everyone else's because self-pity is a standard reaction.You can train yourself to overcome it."

8. The most reliable way to get something you want is by deserving it.

* Focus on personal growth and dreams will come true.

"Sometimes, you will find that some outright villains die rich and famous, but most people around think they deserved to die. If the church is full of people attending the funeral, most of them are there to celebrate that the guy has finally died."

9. Multiple mental models

* Master the core concepts of important fields.

"A man with a hammer sees everything as a nail."

"People must have an interdisciplinary mindset in order to live efficiently and maturely."

10. Don't sell something you yourself wouldn't buy.

11. Avoid working under people you don't respect or aspire to be.

12. One of the secrets to longevity: Stay away from people who drain you, immediately.