#295 I had dinner with Charlie Munger
Founders
Embrace Crisis, Cultivate Patience
Financial crises present unique opportunities for growth, as most people tend to flee from challenges. Successful investors, like Warren and Charlie, embrace crises, using them as moments to invest in their businesses and expand when others are retreating. Understanding that setbacks are inevitable leads to a mindset of indifference towards problems, allowing businesses to be designed with redundancy to withstand tumultuous times. It is essential to maintain cash reserves to prepare for inevitable market downturns, which is a core aspect of a proven investment strategy. Patience and focus are critical; multitasking dilutes effort and prevents deep thinking, while a long attention span fosters success. The accumulation of cash enables strategic purchasing during market crashes, reinforcing the importance of waiting for the right moment to invest.
