The Enduring Legacy of a Visionary
Today (2023-11-28), we lost Charlie Munger. Let's take a moment to honor the enduring wisdom of him, a legendary figure in the world of investment and business philosophy. His insights and principles have been a guiding light for many in the investment community, including us at PreAngel Fund.
As we reflect on his profound contributions, it's clear that many of his philosophies deeply resonate with our own approach to angel investing and our commitment to empowering mission-driven entrepreneurs.
Charlie Munger's Wisdom and PreAngel's Philosophy
Charlie Munger, known for his sharp wit and clear-sighted investment philosophy, has left behind a treasure trove of knowledge. His thoughts on long-term value, ethical investment, and the importance of recognizing the potential in the undervalued and overlooked align closely with the principles that guide PreAngel Fund.
One of Munger's notable quotes, "The big money is not in the buying and selling, but in the waiting," speaks directly to our ethos. At PreAngel, we believe in the long-term potential of the startups we invest in, understanding that true value often requires patience and vision to fully manifest. This approach mirrors Munger's advocacy for long-term investment strategies over short-term gains.
Munger's emphasis on the quality and integrity of the businesses and individuals he invested in also echoes PreAngel's focus. Our mission, to populate every community with investors who believe in the empowerment of innovators, is underpinned by a commitment to investing in entrepreneurs with a strong sense of purpose and ethical grounding. We share Munger's belief that the caliber of the people behind a venture is as crucial as the business idea itself.
Mission-Driven Entrepreneurship: The Heart of PreAngel's Investments
PreAngel has always been committed to supporting entrepreneurs who are not just chasing profits but are driven by a mission to make a tangible, positive impact on the world. This philosophy finds a kindred spirit in Munger's advice: "Show me the incentive, and I will show you the outcome." We look for entrepreneurs who are incentivized not just by financial success but by a desire to contribute to society and innovate for the greater good.
Carrying Forward the Legacy
As we honor Charlie Munger's legacy, we are reminded of the profound impact that thoughtful, principled investing can have. His teachings reinforce our belief in the power of angel investing as a tool for societal progress and innovation. In the words of Munger, "It's remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent." This humility and focus on avoiding pitfalls while seeking out undervalued opportunities are at the core of our investment strategy at PreAngel.
A Tribute to Timeless Wisdom
In conclusion, while we mourn the loss of a great mind, we also embrace the timeless wisdom he imparted. His principles continue to inspire and guide us at PreAngel Fund as we endeavor to support mission-driven entrepreneurs and startups that are poised to make a significant impact on the world. As we move forward, we carry with us the lessons learned from Munger's remarkable life, applying them to nurture and grow the visionary businesses of tomorrow.
Significant Quotations from Charlie Munger
People calculate too much and think too little.
Mimicking the herd invites regression to the mean.
It takes character to sit with all that cash and to do nothing.
I didn't get top where I am by going after mediocre opportunities.
Live within your income and save so that you can invest. Learn what you need to learn.
Remember that reputation and integrity are your most valuable assets—and can be lost in a heartbeat.
The iron rule of nature is: you get what you reward for. If you want ants to come, you put sugar on the floor.
Without the method of learning, you're like a one-legged man in an ass-kicking contest. It's just not going to work very well.
There is no better teacher than history in determining the future... There are answers worth billions of dollars in 30$ history book.
To get what you want, you have to deserve what you want. The world is not yet a crazy enough place to reward a whole bunch of undeserving people.
The great algorithm to remember in dealing with this tendency is simple: an idea or a fact is not worth more merely because it’s easily available to you.
There is so much money now in the hands of so many smart people all trying to outsmart one another. It’s a radically different world from the world we started in.
Acquire worldly wisdom and adjust your behavior accordingly. If your new behavior gives you a little temporary unpopularity with your peer group then to hell with them.
In my whole life, I have known no wise people (over a broad subject matter area) who didn't read all the time -- none, zero. You'd be amazed at how much Warren reads--and at how much I read. My children laugh at me. They think I'm a book with a couple of legs sticking out.
I constantly see people rise in life who are not the smartest, sometimes not even the most diligent, but they are learning machines. They go to bed every night a little wiser than when they got up and boy does that help — particularly when you have a long run ahead of you.
You don’t have a lot of envy, you don’t have a lot of resentment, you don’t overspend your income, you stay cheerful in spite of your troubles, you deal with reliable people and you do what you’re supposed to do. All these simple rules work so well to make your life better.
A lot of people with high IQs are terrible investors because they’ve got terrible temperaments. And that is why we say that having a certain kind of temperament is more important than brains. You need to keep raw irrational emotion under control. You need patience and discipline and an ability to take losses and adversity without going crazy. You need an ability to not be driven crazy by extreme success.
Another thing, of course, is life will have terrible blows, horrible blows, unfair blows. Doesn’t matter. And some people recover and others don’t. And there I think the attitude of Epictetus is the best. He thought that every mischance in life was an opportunity to behave well. Every mischance in life was an opportunity to learn something and your duty was not to be submerged in self-pity, but to utilize the terrible blow in a constructive fashion. That is a very good idea.