I just read an interview with Munger that made me think a lot. Basically, the guy says something that many people don't want to hear: if you can't stay calm when your portfolio drops 50%, then you're not cut out to be a shareholder. End of story.

Munger emphasizes that these crashes are not exceptions; they are the norm if you're investing in the stock market for the long term. They happen, everyone experiences them. The real difference between those who make money and those who don't isn't so much the ability to analyze charts or find winning stocks. It's simply the ability not to panic when everything is falling apart.

What strikes me is how Munger talks about this as a matter of mental strength, not just discipline. He says that true exceptional investors remain as calm as a philosopher while the market goes crazy around them. Once or twice every century, the market does crazy things, and those who can stay steady in those moments are the ones building real wealth over time.

According to Munger, volatility is as natural as the laws of physics. It’s not an anomaly to avoid; it’s simply part of the game. And those who see it that way, who maintain that deep serenity even when everything crashes, are the ones who ultimately achieve extraordinary returns. It’s not complicated in theory, but in practice? Well, that’s another story.