“It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.”
These are the comments of Charlie Munger, the Vice-Chairman of Berkshire Hathaway Corporation, the diversified investment corporation chaired by Warren Buffett. Both Buffett and Munger are billionaires. It would be difficult for anyone to argue that Buffett and Munger are not good at making money. Perhaps there is something we can learn from them.
I like the way Morgan Housel, a columnist at the Motley Fool, a multimedia financial-services company, put it: “One of the most dangerous things you can do is pretend the economy, or the stock market, is simple and easy to understand … So take Munger's advice. If you want to do well, don't waste your time trying to be intelligent. Forget searching for patterns and correlations you think might explain the future. Instead, avoid being stupid by realizing what doesn't work and what you shouldn't pay attention to.”
I suggest you read Housel’s entire article, The Things You Shouldn't Pay Attention To.
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