Alex Hormozi: 8 Lessons Charlie Munger Taught Me To Build $112M Business

The video is about the eight principles that Charlie Munger taught Alex Hormozi to succeed in business and life.

This video by Alex Hormozi was published on May 14, 2021.
Video length: 20:08.

In this video, Alex Hormozi shares eight principles that Charlie Munger taught him to succeed in business and life.

The first principle is to always invert and try to solve problems in reverse. Other principles include avoiding ingesting chemicals to alter your state, not being envious of others, not holding onto resentment, and being reliable.

Hormozi also emphasizes the importance of having a long-term mindset and not comparing oneself to others.

• Alex Hormozi shares 8 principles Charlie Munger taught him for success in business and life.
• Charlie Munger advises to solve problems in reverse and use thinking frameworks.
• Charlie Munger advises against using drugs and alcohol to alter mood.
• Envy and resentment are sources of suffering that should be avoided.
• Being reliable, not overspending income, and learning from others' mistakes are important principles.
• Being rational and objective, networking, and handling pressure are also important.
• Continuous learning and improvement are essential for success.
• Everyone fails, but quitting early guarantees long-term misery.
• Focus on the long-term and be patient in pursuing goals.

8 Lessons Charlie Munger Taught Me To Build $112M Business - YouTube

Introduction

• Alex Hormozi is the CEO and founder of several companies that have done over $120 million in the last four years.
• In this video, he shares the eight principles that Charlie Munger taught him to succeed in business and life.
• These principles are aspirational and benefit most humans.

Invert Always Invert

• Charlie Munger advises to solve problems in reverse.
• Thinking frameworks can help make decisions and solve problems.
• Starting at what you don't want can give you a fresh perspective.

Don't Ingest Chemicals to Alter Your State

• Charlie Munger advises against using drugs and alcohol to alter your mood.
• Using chemicals to cope with issues is not a successful trait.
• It is logical and obvious to avoid ingesting chemicals.

8 Lessons Charlie Munger Taught Me To Build $112M Business - YouTube

Envy

• Warren Buffett and Charlie Munger believe that someone is always doing better than them.
• Comparing yourself to others can be a source of suffering.
• Having a measuring stick for wealth can change over time.
• Envy is an imaginary way to make yourself suffer.

Resentment

• Charlie Munger advises against holding onto resentment.
• One story he shares is of a king who wrote down the names of people he wanted to resent and periodically checked the list to see how life had dealt with them.
• Long-term mindedness can help you realize that people who do bad things eventually suffer the consequences.

Lesson 1: Be Reliable

• Being reliable is key to success in business and life.
• Reliability leads to consistency and long-suffering.
• Showing up and being consistent can open up opportunities.
• Unreliability leads to failure and misery.
• Being reliable is a simple but powerful principle.

Lesson 2: Don't Overspend Your Income

• Overspending your income leads to stress and financial problems.
• Living broke all the time can lead to wealth.
• Wealth is a ratio between income and expenses, not a number.
• Decreasing expenses can increase wealth.
• Living on less than you make can lead to freedom and less anxiety.

Lesson 3: Learn from Others' Mistakes and Successes

• Learning from others' mistakes and successes can save time and effort.
• At the beginning of your journey, you may have no value to offer.
• Find ways to trade your time for someone who has a need for your level of skill.
• Small businesses may need someone who can just help and be there as a body.
• As you learn more skills, you can develop to the next level and afford coaches.

Lesson 4: Be Rational and Objective

• Being rational and objective is key to making good decisions.
• Emotions can cloud judgment and lead to bad decisions.
• Use logic and reason to make decisions, not just emotions.
• Be aware of cognitive biases and try to overcome them.
• Being rational and objective can lead to success in business and life.

Networking and Learning from Others

• Coaches are helpful in the early stages of entrepreneurship
• Masterminds are useful when you are at the same level as other successful entrepreneurs
• Networking with others at your level can lead to valuable connections
• Advisors can provide valuable guidance and mentorship in exchange for a minority percentage
• Heroes, even if you have never met them, can provide inspiration and guidance

Quitting and Failure

• Everyone fails, but quitting early guarantees long-term misery
• Don't create arbitrary expectations that weigh you down
• Use negative visualization to acclimate to stress and avoid unnecessary misery

Handling Pressure

• Success requires the ability to handle pressure
• Don't create unnecessary pressure for yourself
• Use negative visualization to acclimate to stress and avoid unnecessary misery
• Focus on what you can control and let go of what you can't
• Develop a growth mindset and embrace challenges as opportunities for growth

Continuous Learning and Improvement

• Continuous learning and improvement are essential for success
• Read widely and learn from a variety of sources
• Develop a growth mindset and embrace challenges as opportunities for growth
• Be open to feedback and willing to make changes
• Focus on the long-term and be patient in pursuing your goals

Expect the Worst

• Set your expectations low to avoid disappointment.
• Prepare yourself mentally for difficult tasks.
• Expect to be tired, unmotivated, and have other things to do.
• Don't be surprised when you feel that way.
• Align your expectations with reality.

Nothing Matters

• Everything we create will eventually disappear.
• Our brains are meaning-making machines.
• We get to choose what things we create meaning with.
• Understanding that everything will eventually mean nothing frees us in the present.
• Decreases pressure in life and business.

Choose Joy

• Imagine you have to undo everything you do at the end of your life.
• Do things that are stimulating and enjoyable for you.
• Remove expectations and envy for others.
• Decreases pressure in life and business.
• Use as a weapon to defend against inevitable pressures.

Lessons from Charlie Munger

• Expect the worst.
• Don't create false expectations and crumble under pressure.
• Understand that nothing matters.
• Choose joy and remove expectations and envy.
• Decrease pressure in life and business.

Watch the video on YouTube:
8 Lessons Charlie Munger Taught Me To Build $112M Business - YouTube