No single teacher or mentor is perfect. A more effective approach is to identify specific, desirable qualities in various people—such as an investor's rationality or a leader's compassion—and focus on learning how to embody those particular traits, rather than idealizing the entire person.
A University of Pennsylvania study challenges the $75k happiness plateau, finding that for 80% of people, happiness rises with income up to $500k. Crucially, at higher income levels, the primary benefit is the avoidance of negative emotions and worries, providing security and peace of mind.
A study highlighted by Michael Lewis found men systematically overestimate their knowledge, while women underestimate theirs. This cognitive bias is a major risk in investing and leadership. The anecdote of a man confidently miscorrecting "Marie Curie" to "Mariah Carey" perfectly illustrates this dangerous self-assurance.
We project our paths to happiness onto others, forgetting values are individually conditioned. One person's dream (entrepreneurship, multigenerational living) is another's nightmare. This awareness fosters humility and prevents giving prescriptive, biased advice about how to live wisely.
Absolute truths are rare in complex systems like markets. A more pragmatic approach is to find guiding principles—like "buy assets for less than they're worth"—that are generally effective over the long term, even if they underperform in specific periods. This framework balances conviction with flexibility.
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 asking "Is this legal?", a better ethical filter is Charlie Munger's question: "Is this beneath me?" This personal standard prevents engaging in technically legal but unethical behaviors, like selling a financial product you wouldn't recommend to your own mother. It creates a higher bar for conduct.
In 2008, Howard Marks invested billions with conviction while markets crashed, yet he wasn't certain of the outcome. He held the paradox of needing to act decisively against the crowd while simultaneously accepting the real possibility of being wrong. This mental balance is crucial for high-stakes decisions.
Instead of a rigid reading plan, adopt a non-linear approach. Follow footnotes, explore random authors, and jump between books based on intuition. This "wild goose chase" method embraces serendipity and can lead to more profound, interdisciplinary insights than a goal-oriented reading system focused on completion.
16th-century philosopher Montaigne collected bizarre foreign customs (e.g., blackening teeth) not for novelty, but to remind himself how arbitrary his own cultural norms were. This practice helps leaders and investors question their own deeply ingrained, "obvious" truths and see reality from a new perspective.