Charles Munger said, “All I want to KNOW where I am going to die, so I will never go there”. What about your death?

7^th January 2020

Charles Munger said, “All I want to KNOW where I am going to die, so I will never go there”. What about your death?

Greetings from Hitesh! Today is the 7^th. The first week of 2020 is over. This is our last post on Education as far as January is concerned. I appreciate all our readers for taking time out for reading our posts.

I wanted to give investor friends a little jolt. So, we are talking about DEATH today. 90% of Investors die an untimely death in the market. We will learn from Mr.Munger - Friend / Philosopher and Partner of Buffett. He is a WELL READ guy and to learn from him is always a pleasure as he is a man of FEW Meaningful words.

Not a SINGLE Motivational People is a BILLIONAIRE but MUNGER is. Why?

Go to any Trainer or Motivational Person SEMINAR – they will talk about GOAL Setting. They will tell you to set the GOAL / Prepare Strategy / Find out Obstacles / Find out ways to deal with obstacles / work hard / work smart and you will get it what you want. Many times, they ask you to write your goals on the WALLS or BACKSIDE of your TOILET DOOR so that you can read it and get the motivation from it every day.

My personal experiences and observations of 1000 of clients whom I have guided personally in the last 29 years tell me that this is the worst strategy and it is not at all effective. Life is not that EASY. Most of the guys become more demotivated than they were before attending to such a seminar or following such a strategy.

There is a BASIC FAULT in their STRATEGY. Munger has a better solution for the same. Just read and appreciate his COMMON SENSE.

What MUNGER SAYS?

The day before yesterday, I dealt with JEFF BEZOS. He was talking about DAY 1 feelings in whatever you do. We have seen STEVE JOBS yesterday talking about LAST DAY Feelings. Both appear to be similar but there is a major difference. Same way, we have seen most Motivational and Management guys talking about FOCUS on what you want.

But MUNGER says 100% reverse – “Find out what you don’t want from your life/investments and relationships? If you just avoid what you don’t want you will get what you want by default. What an amazing idea?” Read this as many times as you can.

He takes the time to STUDY the FAILURES / MISTAKES made by other investors and businessmen and decides not to repeat them. He says “I sought Good judgment mostly by collecting instances of bad judgment, then pondering ways to avoid such outcomes”. He says “All I want to KNOW where I am going to die, so I will never go there”.

Let us see some of the instances of untimely DEATH of SMALL INVESTORS: -

1.  Taking a loan/margin to buy shares.

2.  Buying shares in FUTURES when he is not having enough experience and margin to pay day today shortfall.

3.  Buying based on Media Tips and expect to make money on it.  What all know about and still you are buying and expecting to make money is the biggest illusion.

4.  Buying too many shares in a small quantity.

5.  Enter the market for investments and start trading or enter the market for trading and keep that position as investments.

6.  Not following STOP LOSSES. Taking INTRA Day position to the next day, in spite of hitting the stop loss.

You can add many such instances which leads to the untimely death of small investors.

Death is not leaving the body according to MUNGER. He talks about not being HONEST is the death for anybody. If you become honest with yourself to start with, you will avoid many unnecessary STRESSES later in life. When you avoid STRESS, you are avoiding DEATH.

His focus is on what will not WORK?

When you know beforehand what will not work – will you apply or follow that? You will save your time, money and other resources. Most of all, you will never get FRUSTRATED with the result, as you have already stopped doing mistakes.

When you don’t get frustrated – the need to motivate yourself does not come, as you are always motivated!! Just think.

What Next?

In SANSKRIT it is said – “BAHU RATNA VASUNDHARA” – it means there are lot many JEWELS in/on the EARTH. Meaning there are N number of WISE people on earth. I am just trying to follow them and keep sharing with you all.

If you need help in investments / personal growth in any areas of your life – you can approach us.

Happy LEARNING.

Follow me on Twitter @hiteshmparikh / WhatsApp - +91-9869425399.

Live With Passion…Invest With Passion.

Hitesh Parikh.