““Like Warren, I had a considerable passion to get rich, not because I wanted Ferraris — I wanted the independence. I desperately wanted it.” — Charlie Munger The world can appear vastly unequal in terms of the goods and services
Starting out too quickly in a marathon is a classic beginner’s error. The adrenaline rush of the starting line, a rested body, and watching others start off strong can conspire to accelerate your pace beyond the level that can be sustained for 26.2 miles. Exceeding your physical capacity at the start can have dire consequences toward the end of the race. Aspects of personal finance resemble marathon running as well. To go the distance, you must pace yourself.
Deprival-Superreaction Tendency refers to the human reactions to the experience of loss — both the loss of something one already possesses as well as the loss of something that one has almost obtained. Human beings feel the pain of loss much more intensely than the pleasure of an equivalent gain and there are important consequences stemming from this tendency. This article is part of a series on Charlie Munger’s Psychology of Human Misjudgment.
“Everything can be taken from a man but one thing: the last of the human freedoms — to choose one’s attitude in any given set of circumstances, to choose one’s own way.” — Viktor E. Frankl World War II is
In the spring of 1980, my family moved from a small apartment to our first house. For a six year old boy, the excitement of having a backyard to play in was tempered by knowing that I would be switching