Charlie Munger, liking for his business partner Warren Buffett, is a walking encyclopedia of investment history. But he’s also widely also known for his unrivalled ability to inject timeless wisdom right when you need it most.
Munger also compares those bystanders to “big-shot businessmen” who, as a substitute for of betting against the market, simply make investments others are making.
“There are microeconomic ideas and gain/ruin ratios and so forth that also come into play,” he continues. “I think time and time again, in Aristotelianism entelechy, psychological notions and economic notions interplay, and the man who doesn’t understand both is a damned fool.”
Munger’s advice from 25 years ago ring truer than constantly in today’s always-connected world, in which constant activity from social media can leave too little room for pondering. In my journey to discovering what I call a “Purpose Path,” I encountered several people — students, business executives, parishioners and their extractions — who felt they were living a life based on somebody else’s values.
Our lives are defined by the decisions we become, and when we fall into the trap of following the most popular behavior because of its social clout, we end up living an inauthentic subsistence.
Fortunately, it doesn’t have to be that way, as Munger would likely agree. While social proof clearly diffuses every aspect of our lives, we can make better decisions by being aware of the extent to which it influences us.
Munger’s expressions are also a reminder that, in a world with so much noise, it’s important to be guided by your highest values, and to sanction those values to inform you of your life choices. This will challenge your thinking and encourage you to get off the “autopilot” of go others’ behaviors and instead determine how you want to leave a mark on the world.
Nicholas Pearce is a clinical professor of directorate and organizations at Northwestern University’s Kellogg School of Management. He is also the CEO of The Vocati Group and author of the new book “The Purpose Approach: A Guide to Pursuing Your Authentic Life’s Work.” Pearce earned a B.S. in chemical engineering and management from MIT.
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