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Daily Thought
All I want to know is where I'm going to die, so I'll never go there. - Charlie Munger
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Charlie Munger, passed away this week, at the age of 99.
This article is dedicated to him, his legacy, his wisdom and his ideas.
He was a legendary investor and partner of Warren Buffett, and championed a powerful concept: “Invert, always invert.”
An invitation to view problems from the end, backward.
Entrepreneurs race towards solutions. Munger, however, implored us to first ponder: What could possibly go wrong?
It’s not about being contrarian for its own sake. It's about comprehending the entirety of a situation.
Let's dive into an anecdote. Consider the story of Kodak. A titan in the photography industry, yet they missed digital photography. Their failure? Not asking, “What could make our technology obsolete?” Inversion thinking might have saved them.
In today’s business landscape, we’re often laser-focused on one path. Growth, innovation, disruption. But inverting these goals can be enlightening. What if we don't grow? What remains? This isn’t defeatism. It’s a tool for clarity and foresight.
Applying Inversion Thinking:
In Sales: Instead of how to sell more? Ask, why aren't people buying?
In Operations: Rather than how can we be more efficient? Consider, what's currently causing inefficiency?
In Strategy: Swap what should we do next? with, what should we not do at all?
Munger’s approach was grounded in simplicity. He advised, “Try to be consistently not stupid, instead of trying to be very intelligent.” Understanding what to avoid is often more crucial than knowing what to pursue.
In a world fixated on positives, Munger highlighted the importance of negatives. Inversion thinking is not merely a tactic; it’s a mindset. In remembering Munger, let's embrace his approach.
Sometimes, clarity comes not from looking ahead, but from understanding what lies behind.
“It’s not supposed to be easy. Anyone who finds it easy is stupid.” – Charlie Munger.
A testament to challenging norms and perspectives. Inversion thinking. A call to question the unquestioned.