I’ve recently chanced upon a book called The Snowball – Warren Buffett and the business of life by Alice Schroeder. It was by far the most enlightening book I’ve read in ages. I’ve learned many a thing from it but one teaching really left its mark on me. The man who said it wasn’t Buffett, but Munger.
Charlie Munger is Buffett’s long time business partner/good friend and I would consider him to be the most underrated investor of our time. There’s something about Munger from what little I read about him that really appeals to me. Mainly because he doesn’t like the limelight and he’s always hungry for knowledge. And that teaching that really made an impression: Invert. Always invert.
What does that mean? It simply means instead of trying to find ways to succeed, find out how you can fail, and simply avoid it. Always look at things from a different perspective, and you will see things that other people might probably miss. That was it, simple and to the point. It’s funny how I’ve never looked at things that way and in hindsight, if I had known how to invert, I would’ve been able to avoid making the myriad of mistakes that I’ve made. But it’s alright, better late than never.
So remember, when faced with a problem, invert – always invert.