Warren Buffet’s “Not Stupid” Investment Philosophy 💰💰💰

Warren Buffet’s “Not Stupid” Investment Philosophy 💰💰💰

Charlie Munger is Warren Buffett’s business partner.

Together, they are arguably two of the top investors in the world.

His insight on investing is this:

“It is remarkable how much long-term advantage people like us [he and Buffet] have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.”

— Charlie Munger

According to Munger, it’s best to focus on avoiding investment mistakes rather than being “innovative”.

Think about that for a second —

How often do you hear others flocking to what they feel is innovative?

How often do you see the a massive transition to something NEW and “Promising” rather than sound money management advice.

According to the top investors in the game, you ultimately want to make sure you’re avoiding BIG MISTAKES, rather than chasing BIG WINS.

Why?

Here’s my take:

Just the mere idea of BIG WINS completely clouds a person’s judgment.

You start envisioning how the BIG WIN can change your life — the house, the cars, travel, the freedom, etc. — BIG WINS play on your emotions.

When the BIG WIN is in mind, reason and common sense get pushed to the back seat.

Your desires for more skyrocket.

That plus the fear of missing outgrows massively out of control.

This pushes most investors into making terrible investments rather than making “Not Stupid” investments.