Charlie Munger has a sign on his door that says, “Bad news welcome, good news can wait.”

That’s because good news rarely needs urgent action. In fact, good news usually requires inaction. “Don’t touch it, it might break!”

Bad news on the other hand requires urgency in order to mitigate the damage.

Never react badly to bad news. Otherwise people will delay delivering information, and your downside will increase.

Lose a customer? Lose a star employee? Lose a tender?

Be cool.