Charlie Munger is the Billionaire Vice Chairman of Berkshire Hathaway, but he wasn't born into wealth.

"I've had results in my life that were prodigious, and that came from tricks. I just learned a few basic tricks from people like my grandfather... there are all kinds of tricks that I just got into by accident in life."

In order to achieve wealth, you're going to need a handful of tricks.

I've spent 6 years of my life building a portfolio of high quality businesses that will generate great returns over the next few decades. These three lessons from Charlie Munger have been integral in my investing career so far.

If you can integrate any of these mental models, you'll be a better thinker, and a better thinker = a better investor.

Invert, all the time.

Charlie's grandfather said "swim as long as you want, but stay near the shore."

This means you can do anything you want in the water(which can be a dangerous place if you drown) but if you simply stay by the shore, you can nearly eliminate the chances of drowning. In investing, you should try to find out how to destroy your investment ideas.

If your idea is easily destroyable, you can pass on the opportunity.

Over, under, and kapow

Charlie was taught to shoot artillery one over, then one under, then "kapow."

He says he uses this as a method to find out how large of a position he should take. If he knows he has a great chance of hitting the target, he can bet heavily on that event. If the chances of hitting the target are below a threshold, you make the bet smaller or take a pass.

This means you should be heavily on your bets that have the highest probability of coming true.

Use multiple mental models

You've probably heard the quote "to a man with a hammer, every problem looks like a nail."

You don't want to solve problems this way.

If you'd asked Munger what Coke was worth, he'd rattle off the strength of Coca Cola using psychology (conditioning), chemistry (cold is more consumable than hot), evolution (effects of aftertaste), then tell you he think's he'd get ~10% returns for the next few decades by buying it.

Charlie would urge you to learn mental models from experience, or by research. Then apply them to your investing process.

There are three tricks that you can utilize today to make attractive money decisions!

3 Tricks Charlie Munger Used To Improve Decision Making (That Can Help Millennials Make Money Today)

Charlie Munger is the Billionaire Vice Chairman of Berkshire Hathaway, but he wasn't born

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