Charlie Munger Changed My Life [8 Lessons]

How I got here…

21: Graduated Vanderbilt in 3 years Magna Cum Laude, and took a fancy consulting job.
23 yrs old: Left my fancy consulting job to start a business (a gym).
24 yrs old: Opened 5 gym locations.
26 yrs old: Closed down 6th gym. Lost everything.
26 yrs old: Got back to launching gyms (launched 33). Then, lost everything for a 2nd time.
26 yrs old: In desperation, started licensing model as a hail mary. It worked.
27 yrs old: "Gym Launch" does $3M profit the next 6 months. Then $17M profit next 12 months.
28 yrs old: Started Prestige Labs. $20M the first year.
29 yrs old: Launched ALAN, a software company for agencies to work leads for customers. Scaled to $1.7mmo within 6 months.
31 yrs old: Sold 75% of UseAlan to a strategic buyer in an all stock deal.
31 yrs old: Sold 66% of Gym Launch & Prestige Labs at $46.2M valuation in all-cash deal to American Pacific Group. (you can google it)
32 yrs old: Started making free content showing how we grow companies to make real business education accessible to everyone (and) to attract business owners to invest or scale their businesses.

Today: Our portfolio now does $200M/yr between 10 companies. The largest doing $100M/yr the smallest doing $5M per year. Our ownership varies between 20% and 100% ownership of the companies. Many of them we invested in early and helped grow (which is how we make our money - not youtube videos).

To all the gladiators in the arena, we’re all in the middle of writing our own stories. The worse the monsters, the more epic the story.

You either get an epic outcome or an epic story. Both mean you win.

Keep crushing. May your desires be greater than your obstacles.

Never quit,

Alex

*FULL DISCLOSURE*
I make content to make money - just - on a longer time horizon than most. I want to build trust with business owners so we can find the best ones and help them scale. And if they’re awesome, write them a check and go all the way as partners.

[Thorodin_Official]

What a wholesome down to earth dude. Rest in peace.
I saw the look on Alex's face when he was talking about independence. Then I noticed a lot of similarities between me and my best friend and Warren and Charlie's friendship. It hit a soft spot. I cried a couple of tears of wholesome joy. Shoutout to Charlie

[Ajay_Cheema]

Instant classic.
I'll be revisiting this one many times.
Thanks, Alex.

[PierceJordan]

Charlie Munger was one of a kind. Thank for sharing these lessons, Alex.

[codyzyn]

I've watched this 3 times. I admire Charlie so much and his philosophy. this was an amazing tribute to him. Thanks for another great one Alex.

[RayAndre]

Biceps are having their own show in this one 💪

[poisonous]

Charlie was truly a fantastic man, all the lessons he gave the world, tremendous appreciation, as well thank you Alex for making this video about such a legend.

[dameanvil]

00:41 🔄 Inverted thinking: Charlie Munger's approach involved solving complex problems by first considering how to destroy or negate them, leading to innovative solutions.
03:02 🛡 Simplicity over complexity: Munger's preference for simplicity in decision-making, striving for businesses easy enough that even an "idiot" could manage them.
05:08 💰 Perfect business components: Uniqueness, expensiveness (high-margin), and stickiness (recurring sales) were key factors Munger looked for in businesses.
07:18 🏢 Hiring like an owner: Finding individuals who act and think like owners, making decisions that prioritize the company's long-term success.
08:57 🍎 Emphasizing brand: Munger's recognition of the importance of brand strength in companies like Apple led to successful investments.
10:31 💸 Living within means: Munger stressed the foundational principle of spending less than earning for financial stability.
11:41 🔄 Mastering fundamentals: Focus on continually simplifying and executing the fundamentals in business rather than pursuing complex strategies.
12:26 📚 Learning from others' mistakes: Munger advocated learning from the mistakes of others to avoid unnecessary pitfalls and setbacks.
13:35 🛑 Knowing when "enough" is enough: Munger's emphasis on achieving independence and contentment over relentless pursuit of wealth serves as a valuable life lesson.

[maximcojocari]

Hi alex, the way you communicate seemingly complex concepts in a way where everyone can understand them is fascinating to me, and I've adopted that "breaking down" process myself into my own life, and I've improved it massively. I've eliminated all insecurity within myself by changing them from something I fear to something I seek out so that I am less in my own way of living a life I'd be proud of.
I wish more people would adapt such an approach to teaching, as it is undeniable that there are so, so many conflicts over simple miscommunication and overly emotional egotistical men. If more leaders had your philosophy on life, especially about the accepting that once you die everything turns to dust, there would be no wars, there would be a productive world where people would simply learn, play, create and fuck.
I truly think more people need to hear you, from a non-business side of things, and I truly believe that you could make the world a better, leading by example.

[camnewton]

Just so you know Alex, the impact you have had on my life is profound, as I assume is the case for so many others. I am eternally grateful! Thank you for truly benefiting all!

[nickmatzan]

It was just now that I was creating a list of books Charlie had recommended that this video was uploaded, as well as hearing of his passing. One of the greatest self-taught investor, philosopher, and human to walk this earth.

[michealgleeson]

What a fab video. Created about a legend by a legend.
Well done Alex Hormozi on a lovely tribute. RIP Charlie Munger

[nadamust]

list of books that Charlie reccomended

"Faraday, Maxwell, and the Electromagnetic Field: How Two Men Revolutionized Physics"
"Deep Simplicity: Bringing Order to Chaos and Complexity"
"Fiasco: The Inside Story of a Wall Street Trader"
"Influence"
"The Outsiders"
"Only the Paranoid Survive"
"Man's Search for Meaning"
"Guns, Germs, and Steel"
"The Selfish Gene"
"Seeking Wisdom"
"The Autobiography of Benjamin Franklin"

[janicemcoleman]

This is a beautiful tribute, Alex. I agree with your heartfelt sentiments about Charlie. His legacy will be honored by people like yourself, me and other by implementing what he so freely shared. ❤

[cezar]

Best video Alex. Thank you for the tribute. True class!

[towandaallen]

You know you are the best Alex, thanks for sharing, I will share, stay blessed, keep up the amazing work and let's go! 💪💪💪💪💪💪💪

[GetNotableDotAI]

Alex, thanks for sharing your learnings from Charlie. So helpful.
00:50 Inverted thinking can lead to innovative solutions.
03:35 Simplicity is key in decision-making and business operations.
05:07 Focus on unique, expensive, and sticky businesses.
07:32 Know when to say 'enough' and avoid unnecessary complexity.
08:32 Brand plays a crucial role in business success.
10:29 Live within your means and prioritize financial fundamentals.
12:13 Learning from the mistakes of others.
13:30 The value of independence over money.

[InvestorCenter]

Studying Charlie Munger truly changed my life. More people need to start studying the lessons he taught

[PatlovelyBHH]

This video will save more lives than I think. Thanks a lot for making it, Alex.

Such a beautiful tribute to Sir Charles T. Munger. May his soul rest in eternal peace.

[ReadOasis]

Thank you Alex. I saw your content recently about "inversion thinking, " and that started down the Charlie Munger Road. Just got "Poor Charlie's Almanac." And it's outstanding. I can't wait to watch this video over and over. Thanks for all the great content.

[bensim]

A lot of Munger videos came out during his passing. This video is one of the best distillations of his thinking. This is the only video so far that I'm bookmarking. Thank you Alex!