If you’ve been an investor long enough, you’ve probably heard someone say, “Be rational.”
It sounds simple enough. Just don’t panic, don’t be greedy, don’t follow the herd.
But as Charlie Munger showed us throughout his life, rationality isn’t just a cool head during market crashes. It’s a much deeper discipline. It’s a lifelong commitment to thinking clearly, even when the world tempts you otherwise.
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Now, most of us think of rationality as the absence of emotion. But Munger’s version is different. As per him, rationality is layered, nuanced, and demanding. It isn’t just about not making stupid decisions. It’s about constructing a mind that naturally veers toward truth, practicality, and long-term wisdom.
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