This article is condensation of 70 years of wisdom of Charlie Munger from his talk “2007 University of Southern California, Gould School of Law’s Commencement Address”.
- Strive to earn what you desire: This idea encourages us to match our actions with the outcomes we wish to achieve. Though it might sound familiar, this principle emphasizes the importance of merit and self-improvement. By pursuing our “desires” with intention and effort, we naturally move toward what we’ve been aiming for. The universe often mirrors the energy we put into it, returning what we give. When we focus on becoming the kind of person who truly earns their desires, we grow into someone who possesses the habits and skills to maintain and appreciate those achievements.
- Become a learning machine: A powerful corollary to Charlie Munger’s philosophy is that acquiring wisdom is more than just a pursuit; it’s a moral responsibility. True wisdom doesn’t come from skimming the surface but from a deeply woven “latticework” of knowledge. Each new insight connects to others, creating a sturdy intellectual framework.
Learning is one of the most transformative forces in life. When we commit to being lifelong learners, we gain insight into every facet of the world around us. Munger emphasizes that mastery is mostly grounded in fundamentals—the core 95%—while the advanced intricacies account for only a fraction. So, instead of jumping straight to complex ideas, focus on the basics. Build a solid foundation, and if your interest leads you there, calculus and advanced theories will naturally follow. - Invert – Always invert: This is one topic that does not come in very naturally. It can be simpler to consider a question from a negative perspective and then flip it around. For instance, if you care for someone, you might ask yourself, “How could I avoid harming or neglecting them?” Then, simply act in the opposite way. This method rarely steers you wrong. By answering questions this way, you gain both clarity and direction on what to do next.
- Avoid extremely intense ideology: When we commit ourselves intensely to a particular ideology, it can create a bias that shapes our thinking around it. This strong attachment can lead to a kind of mental “brainwashing,” where we become less open to alternative perspectives or solutions. This focus can cloud our ability to think critically, making it harder to consider other angles on a problem or situation.
- Do not have a self serving bias: A self-serving bias tends to limit our perspective, often leading us to prioritize our own interests over others’. This mindset not only narrows our thinking but also projects an impression of self-centeredness that others can easily perceive. When people sense that our actions are primarily driven by personal gain, it can create a barrier in our relationships, eroding the trust they might have in us. Over time, this perception of selfishness can make others feel undervalued or dismissed, reducing the openness and collaboration we might otherwise experience. Trust is built on fairness and mutual respect, so when we act with a self-serving bias, it undermines these foundations, ultimately isolating us from genuine connections.
- Avoid self pity at all costs: Avoiding self-pity is essential, as it often keeps us from pushing ourselves to overcome challenges. When we indulge in self-pity, we build a mental barrier that limits our growth and resilience. Instead of addressing issues constructively, we may dwell on setbacks, which creates a cycle of negativity. This mindset not only holds us back but also affects our relationships—people tend to feel drained around those who constantly feel sorry for themselves. Self-pity can shift the focus away from problem-solving, making it harder to gain the support and encouragement that come from a positive, resilient approach.
- If you would persuade, appeal to interest, not to reason: The phrase “If you would persuade, appeal to interest, not to reason” emphasizes the idea that effective persuasion often relies more on tapping into people’s emotions and personal interests than on presenting logical arguments. When trying to influence someone, it’s crucial to connect with what matters to them, rather than solely relying on rational reasoning. People are more likely to be swayed by messages that resonate with their desires, fears, or motivations. By aligning your message with their interests, you create a stronger emotional connection, making them more receptive to your ideas and ultimately more likely to take action.
- Avoid being subjected to perverse incentives: Avoid getting caught up in perverse incentives. These situations arise when motivations or rewards lead to unintended and often detrimental outcomes. It’s crucial to recognize how such incentives can skew decision-making and push behavior in harmful directions. Instead, concentrate on aligning your actions with constructive results and ethical principles. By emphasizing integrity and staying aware of the risks associated with misguided incentives, you can make wiser choices that align with your long-term goals and values.
- Maximizing non-egality will often work wonders: The concept of “maximizing non-equality” suggests that embracing and leveraging differences among individuals can lead to exceptional outcomes. Rather than aiming for complete equality in terms of treatment or perspective, advocating for recognizing and utilizing the unique strengths, skills, and viewpoints that each person brings to the table.
This approach encourages collaboration and innovation, as diverse perspectives can lead to more creative solutions and a deeper understanding of complex problems. By fostering an environment that values these differences, organizations and teams can unlock potential that might otherwise be overlooked. In essence, this highlights that appreciating and maximizing non-equality can significantly enhance effectiveness and drive success in various endeavors. - Intense interest in any subject is indispensable if you’re really going to excel in it: Having a strong passion for a subject is crucial for achieving excellence in it. When you immerse yourself in something you truly care about, you’re more inclined to dive deeply into the material, explore different facets, and persevere through obstacles. This kind of enthusiasm drives motivation, prompting you to move beyond mere surface-level understanding and uncover new perspectives. Without such commitment, learning may remain shallow, hindering your progress. A true interest not only deepens comprehension but also sparks creativity and innovation, setting the stage for remarkable accomplishments in your area of focus.
- Have a lot of assiduity: Take action and take charge of your responsibilities! When assigned a task, the most effective strategy is simply to complete it. This proactive mindset not only enhances your reliability but also cultivates trust among those around you. When others observe your consistent follow-through on commitments, they gain confidence in your capability to tackle future assignments, knowing they can rely on you. By demonstrating this level of dependability, you position yourself as a more deserving candidate for entrusted roles, ultimately creating a robust network of trust that can benefit you in both personal and professional spheres.
- Be prepared for the worst that can come to you, fight back and do not dwell in it: Be ready for challenging times that may come your way, but don’t let fear or anticipation hold you back. Instead, prepare yourself mentally and emotionally so that when difficulties arise, you can confront them head-on. Anticipating potential setbacks allows you to develop resilience and a proactive mindset. This preparation isn’t about expecting the worst to happen; rather, it’s about equipping yourself with the tools and strategies to respond effectively when obstacles do arise. When the moment calls for action, summon your inner strength and determination to fight back. By facing adversity with courage and preparedness, you not only navigate through tough times but also emerge stronger and more capable.
- Maximize a seamless web of deserved trust: Aim to be so trustworthy that you naturally attract a network of reliable individuals. When you cultivate trustworthiness, you build relationships where both you and others feel confident in entrusting each other with responsibilities and important matters. This reciprocal trust fosters a supportive community where everyone is committed to each other’s success. As you invest in these trustworthy connections, you create a strong foundation where mutual respect and reliability thrive, making it easier to collaborate and achieve common goals.
For your reading:
- “2007 USC Law School Commencement Address”
- The Wisest Graduation Speech Of All Time
- Here’s what Charlie Munger says all young people should know about choosing a career
- Who Was Charlie Munger? Remembering Berkshire Hathaway’s Visionary Investor
Writer: Ankita Pujar,
Editor: Dr. Robin Garg
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