• 01:11 🔄 Inverting problems for better solutions

  • Inverting problems allows for a clearer perspective.
  • Instead of asking why a stock might succeed, consider why it might fail.
  • This mental trick helps avoid bad investments and enhances decision-making.

• 04:25 🤝 Knowing your circle of competence

  • Understanding your limits is crucial in investing.
  • Focus on what you know well to avoid bad investment decisions.
  • Specialization often leads to more successful outcomes.

• 08:06 📉 Rational response to market swings

  • Being unaffected by market volatility is key to long-term success.
  • Volatility is a natural part of investing; stay focused on the big picture.
  • Long-term holders must withstand periodic downturns.

• 10:25 🔄 Keep investment strategies simple

  • Look for straightforward businesses with strong fundamentals.
  • Prioritize companies that can endure mismanagement.
  • Simple businesses with capable management often yield better results.

• 12:28 📚 The power of continuous learning

  • Reading and self-education are fundamental to success.
  • Continuous learning enhances personal growth and earning potential.
  • Lifelong self-improvement is essential for sustained achievement.

• 01:31 📈 High return on capital is a key factor contributing to long-term investment success.
• 04:39 💰 Paying an apparently high price for a stock can still yield good returns if the company consistently reinvests at a high rate of return.
• 07:05 📉 A backtest comparing stocks with different returns on capital shows higher returns for companies with ROIC over 18%.
• 09:19 📊 Winners in a portfolio tend to become more significant over time, outweighing losers.
• 12:59 📋 Top companies in the S&P 500 with consistent high returns on capital can be identified for potential investment opportunities.

Munger's responses were frank & straight to the point, no fluff or hype, which seemed to throw the interviewer off track a bit.

Charlie really likes how Singapore developed and is run.