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The Psychology of Human Misjudgment by Charles T. Munger

Charles T. Munger is the vice-chairman of Berkshire Hathaway. He gave three separate talks ranging from about 20 to 23...

Nightly Sex in Hotel Bar Bathrooms with Women in Burqas

People will always find a way express themselves and be who they want to be, as their character and desires are too difficult to permanently repress. When you attempt to repress your individuality, it will come out in ways you cannot even imagine. You can do and be whoever you want by expressing yourself, and finding the work and life that you want. Do not let anything hold you back.

Waiting for the Prize Patrol

In this article Harrison talks about the huge fundamental mistake that most people make with their lives. They base their future on a “big win” outside their control. In sales it is not uncommon for people to put all of their efforts into trying to close “one big deal” and exclude other small deals. When people put their efforts into this sort of thing they get lucky sometimes … but most of the time they do not. Everyone does this sort of thing to some extent and it needs to stop. Many people are continually basing their future on “a big break” or some sort of “breakthrough” happening in their careers and lives. Slow and steady generally wins the race. You need to invest in what you are doing over time.

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Do Not Overreact to Past Pain

Do not overreact to past pain; people experience countless painful things in her careers, but that does not mean one should avoid doing things because they might cause you pain. Not every painful thing is bad, and anything is preferable to inaction based on past painful experiences. Your current life and job should not be affected by past pain stemming from experiences that are no longer relevant.

The Importance of Sacrifice to Our Careers

You must constantly be sacrificing in order to ensure advancement in your life. You will always be called upon to make sacrifices in your life and career, and you must do so in order to grow. Take your job and career seriously, and remember that the work you do is sacred. The more you appreciate your work, the better your will get at it.

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Become Entrepreneurial

One of the greatest risks in your career and life is of becoming a commodity; at that point you are no different than anyone else in the market, and employers can mint more workers just like you. To set yourself apart from this process, you must become entrepreneurial and circumvent what others around you are doing. Examine situations around you, and figure out how to create unique efficiency and value. Work for companies that are constantly innovating, and approach your own career in terms of constantly improving efficiency.

Stop Comparing Yourself to Others

Not too long ago, a man moved to my Malibu neighborhood from New York and suddenly became very popular. He held himself out as someone who was in “private equity”, leased a home for $40,000 a month and started going around touring various properties that were for sale for $30,000,000+ and acting extremely wealthy. He drove around my neighborhood in a series of different Ferraris at all times of the day and did not seem to work.

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Avoiding problems, not challenging yourself, and giving up in the face of challenges are all forms of being a loser. Your reaction to any given situation is far more important than the situation itself. Whether you are the type of person who moves towards or away things will ultimately determine your career success; those who move toward things make consistent progress, confronting their fears by facing and dealing with them.

You Need to Have Desire to Achieve Your Goals

In this article Harrison discusses the importance of having a strong desire to achieve goals. People who are out there achieving great things are the ones who have the most desire. When you have a wish that is backed by a desire, you will start to achieve what you are looking for because you will create opportunities for yourself and your desire will drive you to excel. Without a desire and a goal you will just wander aimlessly through life. Get obsessed and focused on a goal. This is the only conceivable way your career is going to go to the highest level possible. Wish big and create a desire, and your life and career will never be the same.

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Your Job Is a Game-Make Your Opponents External

In this article Harrison explains how you can ensure success in your career by externalizing your opponents. Your job is like a game; if you work hard, play by the rules of the company and are seen as part of the team you will be viewed as a valuable player for the company. The most significant part of any game is the presence of an opponent. Don’t look for an opponent among your co-workers. Never speak negatively of your team members. Instead, concentrate on the external opponents. External opponents bring you and the team closer as you work towards a common goal. In order for you and your company to succeed it is important to have an external opponent. Harrison advises people to consistently work hard and not participate in the politics. This is a sure way to score big in your career.

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Self-Esteem and Lunch Room Tables

True self-esteem comes from within, not from the acceptance of others. When your sense of worth comes from within, you free yourself from comparisons with others and will enjoy a greater sense of internal security. You will no longer be bogged down by the experiences of others and can become much more self-reliant.

Take Small Actions and Meet Others

Your greatest successes will come from some of the smallest actions in terms of meeting people. You will cause a “stacking effect” the more you meet and connect with people; conversely, people cannot connect with you when you are withdrawn and nothing will happen. You must do everything in your power to connect with as many people as possible.

The Importance of Your Sense of Self

A powerful sense of self will make all the difference in your life. You must understand that your sense of yourself and your capabilities come from inside of you, not from the external forces that have brought you to your current place in life. What you feel internally might be completely different from what the world is telling you, and you must learn to focus on the former rather than the latter.

Sick Crows, Your Attitude, and Being on the Winning Team

Adopting a positive attitude will always bring you closer to success, as nobody wants to be associated with a losing side. Everyone wants to associate with and hire winners, and avoids losers. Nothing is more important than maintaining a positive attitude, as many employers hire people based primarily on attitude; with the right attitude, everything else will fall into place. You must look like you are on the winning team, even if times are tough; nobody wants to hire a loser.

Emotions and Our Careers

Everyone tries to maintain a certain emotional state, and learning to control your own emotions will have a profound impact on your career. While everyone allows their emotional states to be influenced by outside events, there is no advantage in basing your own emotions on things that you cannot control. Allow yourself to discover happiness and fulfillment naturally, rather than making your emotions dependant on external circumstances. Your outlook will have a tremendous impact on your psychological health, as well as that of those around you.