Munger’s metaphor means that results depend partly on choosing an environment where worthwhile opportunities actually exist. Skill and effort matter, but they are less useful if they are applied in a field with poor prospects, weak demand or limited room for advantage.

In business and investing, this can mean focusing on markets, industries or situations where conditions are favourable and where one’s capabilities are relevant. The principle is therefore about selection before execution: deciding where to compete can be as important as deciding how to compete.

More broadly, the quote argues for directing scarce resources towards places with better underlying odds. It does not suggest chasing every popular opportunity, but rather identifying where genuine opportunity is concentrated and avoiding areas where effort is unlikely to produce proportionate returns.