Munger Investment Principles

While carrying out any investment assessment, first calculate risk.

Make decisions at your own and be self-determining. After listing down risks, you make decisions based on involved risks. Whatever you decide, you owe that and be self-determining regarding your decisions and actions.

Plan to encompass a few imminent.

Being a humble and admitting, where you are deficient in is the birth of perception. Committing mistakes is human factor and admitting your mistakes is undoubtedly humbleness.

For errors and mistakes reduction,   investigate thoroughly. Accepting mistakes are good but nothing is as good as avoiding mistakes. Before making any investment, you must try your best to reduce inaccuracies and mistake by   investigating thoroughly.

Assigning capital intelligently is must. While making any investment capital is assigned, allocating capital and asset intelligently is must and while doing so you must take lots of care.

Oppose the normal individual prejudice to do something and have endurance.

In appropriate situation, be determined and confident.

Accept change. Change is a common phenomenon of any business and investment so recognize, accept, and acknowledge that as a part of investment business.

Pay attention. Pay concentration during investment. Pay concentration and be aware of your surroundings and your acts while investing. Where you lack attention and concentration, it is your first step towards failure.