Advice from Warren Buffett and Charlie Munger

I finally got around to transcribing my notes from the 2010 annual Berkshire Hathaway meeting. Each year I take away some invaluable advice on living life and on investing. Much of it is common sense, but to hear two of the wealthiest men in the world say this advice works really helps me focus. Here are a few of the highlights. Most of this is advice on investing, but a lot of it helps in day to day life:

• Be patient and wait for the right opportunities.
  
• Good investments only happen from time to time. The good news is, it only take a few to do really well.
• Follow your passion. Don't let anything get in your way.
• Spend less than you earn.
• Be pragmatic. When something works well, keep doing it. Repeat what works.
• Know your circle of competence and invest only in what you know.
• Some of the best investments are in companies with low capital requirements. For example, companies where customers pay you in advance of receiving the product or service. You get to use the customer's money to finance your business.

I'll probably expand on some of these later because I really like these nuggets. Spend less than you earn is probably my favorite as that is a major premise of this blog.