A Rule of Human Systems: Leadership Will Always “Pass the Baton”

Charlie Munger frequently emphasizes that anyone in a position of dominance will inevitably “pass the baton” of leadership.

Below are some examples Charlie has mentioned in talks:

Transcript from the 2003 Wesco Annual Meeting, May 7, 2003 *

“The loss of dominance rate is 100%. Every great civilization that was dominant eventually passed the baton. Similarly, the greatest companies of yore are not the great companies of hence. I like looking back and seeing who would have predicted what happened to [formerly great companies like] Kodak, Sears and General Motors.”

Transcript from Wesco Annual Meeting, May 6, 2009*

“Where is Egypt or Athens or London? It is nature of things that we do baton passing. It is state of nature that baton gets passed, to someone who tries harder and cares more.” …

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