One of my favorite business leaders who had great wisdom was Charlie Munger. He was Warren Buffet’s business partner and best friend. Charlie passed away in 2023.

Charlie Munger once asked: ‘How can someone give away fifty percent of profits and make billions more than if he’d kept it all?’ He then responded by sharing the story of Les Schwab, a tire shop owner. He shared five lessons that are very insightful and I think will be of value to you.

Win Win, The Math of Generosity: Les discovered that splitting profits 50/50 with store managers didn’t cut his wealth in half, it multiplied it. His reasoning was pure math: “If I share half the profits, I still have half. And if Frank makes more money, he’ll work harder to make the store successful. If the store is more successful, my half is worth more than my whole used to be.” You get rich by making others rich.

All-In or All-Out: At 34, Les sold his house, borrowed against his life insurance, and scraped together $11,000 to buy a failing tire shop with no running water. He’d never changed a tire. His competitors had decades of experience. But Les had something they didn’t: no backup plan. That total commitment forced him to figure it out. One year later, he’d quintupled revenue. Half-measures guarantee half-results.

High Agency: Everything is your job. Les bought his first tire shop having never fixed a flat in his life. On day one, a customer needs tires mounted. Les fumbles with hand tools on the cold concrete, making a complete mess until his employee arrives. He insisted on being taught, so the situation never repeated. Sometimes, the only qualification you need is the willingness to figure it out.

Go Positive, Go First: Les instituted free flat repairs for anyone, customer or not. Competitors called him crazy. Why fix flats for people who bought tires elsewhere? But Les understood reciprocity: humans are biologically wired to return favors, even those that are unearned. Those free repairs created a loop, doing more marketing than marketing could ever do. Almost all of the people whose tires he repaired became customers who bought new tires from him.

Dark Hours: As a teenager, every morning before dawn, Les ran his paper route. Not biked, ran. For two months, he sprinted through dark streets on foot, saving enough to buy a bicycle. While his classmates slept, he earned. By his senior year, Les owned all nine routes in town. When your competition sleeps, you can build your lead.

These I believe, are great life lessons. If you have children, you might want to share this with them.

Richard E Simmons III is the founder and Executive Director of The Center for Executive Leadership and a best-selling author.