Collection: Charlie Munger - #35 'Understand Your Limitations'



[Transcript]

AUDIENCE MEMBER 00:08

Charlie.


CHARLIE MUNGER 00:09

Yeah.


AUDIENCE MEMBER 00:10

One of my favourite lines from you is you want to hire the guy with the IQ of 130 that thinks it’s 120 and the guy with an IQ of 150 who thinks it’s 170 will just kill you.


CHARLIE MUNGER 00:19

You must be thinking about Elon Musk.


AUDIENCE MEMBER 00:31

How do you assess someone when making a hiring decision?


CHARLIE MUNGER 00:37

The question is what? Of course I want the guy who understands his limitations instead of the guy who doesn’t.


On the other hand, I’ve learned something terribly important in life. I learned that from Howard Ahmanson. You know what he used to say? “Never underestimate the man who overestimates himself.” These weird guys who overestimate themselves occasionally knock it right out of the park. And that is a very unhappy part of modern life. But I’ve learned to adjust to it. I have no alternative. It happens all the time. But I don’t want my personal life to be a bunch of guys who are living in a state of delusion, who happen occasionally to win big. I want the prudent person.


(Source: https://youtu.be/X1Oi3esiry8)

 

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