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Monday 09 November 2026 13:17:20 GMT
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Charlie Munger — Vice Chairman of Berkshire Hathaway for 45 years, Warren Buffett's closest partner, $2.6 billion net worth at his death in 2023 — was once asked about his hiring philosophy on CNBC. 🧠 The setup: he'd previously said you want to hire the guy with an IQ of 130 who thinks it's 120, not the guy with an IQ of 150 who thinks it's 170. His direct answer: 🔥
Charlie Munger — Vice Chairman of Berkshire Hathaway for 45 years, Warren Buffett's closest partner, $2.6 billion net worth at his death in 2023 — was once asked about his hiring philosophy on CNBC. 🧠 The setup: he'd previously said you want to hire the guy with an IQ of 130 who thinks it's 120, not the guy with an IQ of 150 who thinks it's 170. His direct answer: 🔥 "Of course I want the guy who understands his limitations instead of the guy who doesn't." Self-awareness beats raw intelligence. That's the principle. Then he complicated it. "I learned something terribly important in life. I learned that from Howard Ahmanson. 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." "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." Here's the honest tension he's naming: The hiring rule he advocates is correct on average. Most overconfident people produce worse outcomes than self-aware people — they take risks without preparation, they have blind spots they never examine. But it's not universally true. 💰 A small number of people who genuinely overestimate their own capabilities occasionally pull off things the self-aware candidate never would have attempted — because they never would have tried. Munger's resolution: he doesn't want his own life full of people whose delusion occasionally wins, because the average outcome of that group is bad. But he won't pretend the outliers don't exist. That's the most honest version of this advice you'll ever hear. 👉 @entrepreneursanctuary #CharlieMunger #BerkshireHathaway #Hiring #Entrepreneurship #Mindset

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