AUDIENCE MEMBER 00:07
What advice you would give to young individuals with a passion for business and finance. What would you say is the best possible way for someone to expose themselves and expand their understanding of workings in the business world which without actually currently being involved it in?
And how can I maximize my potential value to a corporation in the future by what I do right now?
CHARLIE MUNGER 00:30
Well that’s a good question. There are so many of you now who want to be rich by going into finance. And of course that multitude, not all is going to get rich.
And of course, 99% will be in the bottom 99%. That’s just the way it’s going to work.
If I look at people in my generation, the nerds who were patient and rational eventually did well. Those who lived within their income, worked at being sensible, and when they saw an opportunity grabbed it very fiercely, and so forth. And I think that will work for the new nerds of the world.
For the people who get ahead because they’re star salesmen or charismatic personalities, I’m not one of those, so I don’t know how to do that. So if you’re not a nerd, I can’t help you.
And I think that the odds are that most people who try to do finance are not going to succeed. And there’s a lot of wretched excess in it because easy money will always attract wretched excess. It’s just the nature. It’s like a bunch of animals feeding on like carcass in Africa. By the way, that’s an image I chose on purpose.
So I don’t think it’s so pretty and I don’t think that modern finance is so wonderful.
And in my day, a lot in the finance field were more like engineers. They were so chastened by the Great Depression and all the wretched failure, that they really tried to make everything super safe. And it was a very different plotting place. The people weren’t trying to be be rich, they were trying to be safe.
This modern world is radically different. I’m not sure if I was starting out in your world how well I would do. It would be a lot harder than it was to get ahead in the world than what it was when I came up.
If I were you, my best advance – I think you’ll be happier if you reduce your expectations and if you try and satisfy them, By the way, I think that’s generally a good idea. It sounds silly but it’s so obvious.
You know how many of us are fairly content with pretty moderate success? That is worth knowing because that’s what most of us are going to get.