When it comes to investing, it’s OK to do nothing

Buffett even compared investing to a baseball hitter who waits for a fat pitch. Unlike in baseball, in investing you won’t be called out after three strikes. You can easily let as many pitches whiz past as you like. The concept of patience has wildly influenced the way stocks are rated.

You can have only a couple of stocks to recommend. In some people’s personal portfolios, there will never be a pressure to swing if it’s uncomfortable. Letting cash pile up is just as fine, as there will most certainly be some kind of market correction to bring the prices down again to better levels.

Always keep learning

Both Buffett and Munger love reading, and Munger is an avid fan of science and has a deep understanding of evolution. Some of the most interesting recommendations he has ever made include Influence: The Psychology of Persuasion, by Robert Cialdini, and The Selfish Gene by Richard Dawkins, but also Guns, Germs, and Steel by Jared Diamond.

It’s much better to hire someone with plenty of intellectual curiosity than just a narrow focus on finance, because as Munger once said: “you would be surprised to know how much Warren reads – and how much I read. My children oftentimes laugh at me, as they believe I’m a book with legs sticking out.”