Charlie Munger's 10 Rules for Investment Success

Munger is almost as forthcoming with his investment thoughts as his pal Warren Buffett. In his must-read book, Poor Charlie's Almanac, Munger puts forth a 10-step checklist that even the most inexperienced investors could benefit from.

1. Measure risk: All investment evaluations should begin by measuring risk, especially reputational.
2. Be independent: Only in fairy tales are emperors told they're naked.
3. Prepare ahead: The only way to win is to work, work, work, and hope to have a few insights.
4. Have intellectual humility: Acknowledging what you don't know is the dawning of wisdom.
5. Analyze rigorously: Use effective checklists to minimize errors and omissions.
6. Allocate assets wisely: Proper allocation of capital is an investor's No. 1 job.
7. Have patience: Resist the natural human bias to act.
8. Be decisive: When proper circumstances present themselves, act with decisiveness and conviction.
9. Be ready for change: Accept unremovable complexity.
10. Stay focused: Keep it simple and remember what you set out to do.

Source & complete article: http://www.fool.com/investing/general/2007/12/13/charlie-mungers-10-rules-for-investment-success.aspx