In "The Art of War," adhering to the "moral law" is a core strategic principle that ensures loyalty in crisis. Buffett applies this by cultivating a reputation for fairness and character. This becomes a competitive advantage, attracting partners and deals that others cannot access, proving ethics are a strategic asset.

Nietzsche's thought experiment of eternally reliving one's life forces moral clarity, mirroring Warren Buffett's "inner scorecard." Both concepts champion making decisions based on internal principles and integrity, rather than external validation, social pressure, or legality.

Munger notes that many large law firms compensate senior partners equally, regardless of their individual contributions. This seemingly inefficient structure is a deliberate defense mechanism to prevent the powerful and destructive force of envy from creating disorder and tearing the firm apart.

Buffett emphasizes 'controlled greed.' His equally smart partner, Rick Guerin, was impatient and used margin loans. When the market fell nearly 70% in 1973-74, he was forced to sell his Berkshire shares back to Buffett for a pittance, missing out on generational wealth.

Charlie Munger, who considered himself in the top 5% at understanding incentives, admitted he underestimated their power his entire life. This highlights the pervasive and often hidden influence of reward systems on human behavior, which can override all other considerations.

The super-rich lose empathy not necessarily because they are bad people, but because their lifestyle systematically isolates them from common experiences. With private airports, healthcare, and schools, they no longer participate in or understand the struggles of mainstream society. This segregation creates a fundamental disconnect that impacts their worldview and political influence.

Charlie Munger's term describes leaders who aren't just driven, but are adaptable learning machines. They build high-performance cultures based on trust and ownership, focus on long-term value, and create competitive moats that rivals cannot initially comprehend or replicate.

While Buffett viewed Bitcoin as useless for not producing cash flow, Bill Miller questioned the premise itself. He asked, "Who said the goal... is to own assets that generate cash? I thought the goal was to make money." This first-principles, philosophical thinking is a major competitive advantage.

Instead of directly praising his successor Greg Abel, Buffett's final letter is a masterclass in indirect endorsement. By repeatedly emphasizing traits like integrity and dependability, he frames character as the most crucial CEO qualification, implicitly anointing Abel without needing to mention his name often.