You always stand up and start walking, no matter how many times you fall.

Charlie Munger’s Investment Rules to Make Money in Stock Market

Charlie Munger's Philosophy
Know Charlie Munger’s Philosophy to make money in Stock Market

Rule # 1 – Measure Risk
All investment evaluations should begin by measuring risk, especially reputational.

Rule # 2 – Be Independent
Only in fairy tales are emperors told they’re naked.

Rule # 3 – Prepare Ahead
The only way to win is to work, work, work, and hope to have a few insights.

Rule # 4 – Have Intellectual Humility
Acknowledging what you don’t know is the dawning of wisdom.

Rule # 5 – Analyze Rigorously
Use effective checklists to minimize errors and omissions.

Rule # 6 – Allocate Assets Wisely

Proper allocation of capital is an investor’s No. 1 job.

Rule # 7 – Have Patience
Resist the natural human bias to act.

Rule # 8 – Be Decisive
When proper circumstances present themselves, act with decisiveness and conviction.

Rule # 9 – Be Ready For Change
Accept unremovable complexity.

Rule # 10 – Stay Focused
Keep it simple and remember what you set out to do.

From Poor Charles Almanack, a book by Charlie Munger and must read for every Value Investor.

Charlie Munger
You need a different checklist and different mental models for different companies. I can never make it easy by saying, ‘Here are three things.’ You have to derive it yourself to ingrain it in your head for the rest of your life.

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