Poor Charlie's Almanack
Remember that guy who tried to build a 'windowless dorm' at UCSB
2023: Munger Hall Abolished
University of California abandons plans to build “windowless dorm” Munger Hall
Present Day:
Monday morning, 5:45 am, my phone buzzes. I begrudgingly get out of bed, walk over, hit snooze, and get back into bed. 5:53, it buzzes again, and I snooze again; this time, instead of going back to sleep, I open Instagram, turn my screen to full brightness, and watch Reels. I can't remember most of what I watch, but the blue light flips a switch somewhere in my brain, and the dopamine receptors start firing just enough for me to throw over my blanket and get out of bed.
I put on my running clothes and hurry out of the house. It's 6:45 AM in San Francisco, and the fog has made its way into my neighborhood.
We're about a half mile in now, and I'm well outside my neighborhood. San Francisco's best homes rest atop the several hills in the city, so I mix them into my route. As I struggle up the path, I look left and right and remind myself that this is the goal: life above the fog.
I'm not sleepy anymore; the cold is bearable now that I'm out and about. I feel good about myself, sneaking in a run before work. Back home, I weigh myself, take a (cold) shower, make breakfast, and rush out the door by 830, feeling good about my productive morning. I get on the train, and if there's space to sit, I read my book (currently Poor Charlie's Almanack); if not, I scroll on X. I exit the train at my station and reorient myself once I return to the street level. I then go to Blue Bottle Coffee, order a pour-over, and tip the hot barista way too much (inside joke). I sip on it as I walk the final few blocks to work, contemplating my epic morning and my well-deserved $7 coffee.
But then doubt creeps in. I think to myself, "Despite my efforts, things seem to be stagnant." People around me are bathing in success; they work out after work and take hot showers. Am I just doing something hard for no reason? Are my actions sowing seeds of the wrong fruit?
Recently I've learned to cope with this doubt in a healthier manner, thanks to that book I've been reading on the train: Poor Charlie’s Almanack. Billionaire investors Charlie Munger (the windowless dorm one) and Warren Buffet spent their lives developing a philosophy for investing. The learnings that Munger documents in this book spill over into every other aspect of life.
Here are some of my favorite quotes from the book and how they've helped me chillax a little.
"Mimicking the herd invites regression to the mean (merely average performance)."
Munger makes this comment with respect to investing. Berkshire Hathaway (the pair's holding company) is notorious for making large bets in a small number of companies, a strategy starkly different from Wall Street. In long enough intervals of time, their investments outperform the market and most actively managed funds. Why do they have a different outcome from the herd? Because they act differently from the herd. As young adults, taking actions outside the norm can be scary. But it's far more dangerous to follow the same path as others and expect different results.
"Enjoy the process along with the proceeds because the process is where you live."
It's a cliche yet important take by Munger. I enjoy running up the hill, taking the cold shower, and the $7 coffee (not including the hot barista's tip). While not all parts of my routine are pleasurable, I look forward to doing them regularly. How can we be consistent if we don't enjoy what we do? And if we aren't consistent, how can we possibly attain excellence?
"Determine value apart from price, progress apart from activity, wealth apart from size."
Buffet and Munger made their living by buying underpriced assets and holding them for long periods. They were able to identify value in places where others saw nothing. Can we, as young adults, do the same? Can we find the strength to build a habit, identify an opportunity, start a project, find a mentor, or even be with a partner while being ridiculed by others? For those of us who find the courage, Munger and Buffet's philosophies dictate that our decisions will pay off handsomely, not today but decades into the future.
"Don't overlook the obvious by drowning in the minutiae."
Most investment firms have thousands of employees who work 80-hour weeks, have fancy degrees, and use complex algorithms to make decisions. Munger and Buffet are a two-man team, read Standard and Poor's, go on long walks, and spend lots of time with their families. Can we simplify our lives? Are we adding complexity just for complexity's sake? Less is more, advised Munger and Buffet; maybe doing less, even in your twenties, might yield you far more than you expect.
Now, when I get home from work, I call my mom and ask her how she's doing. I write for this blog and maybe even grab a drink with a friend. There's no need to push it too hard.
The world is a complex place where everything interacts with everything else, explains Munger. Instead of trying to understand it all, Munger emphasized recognizing your blind spots. He quotes Albert Einstein:
"Keep things as simple as possible, but no simpler."
I don't have it all figured out, and that's okay as long as I don't fool myself into believing that I do.
-Raj
P.S. I forgive Charlie for Munger Hall.