During a virtual interview conducted by the California Institute of Expertise on Monday, Charlie Munger outlined the potential dangers and important merits of the current “frenzy” in the stock market, unprecedented financial and financial growth.
The 96-year-old alumnus, who serves as Warren Buffett’s right-hand man and Berkshire Hathaway’s vice president, also spoke about easier ways to navigate technological change, praised Costco and Sequoia Capital, and praised their philanthropy. reduced.
“In the long run, America’s businesses behave more like biology than the rest. In biology, all people die, so all species die. It’s only a matter of time” – Essentially on companies ” Clobber”.
5. “Berkshire owns the Burlington Northern Railroad. You can hardly consider an old-fashioned enterprise more than a railroad business. Who in the hell is going to build another Trunk Railroad. We’ve succeeded not by conquering change, but by avoiding it.” ”
6. “Essentially the most outstanding funding agency in America may be Sequoia. That venture-capital agency is utterly fanatical on contemporary technology innovation. They’ve made more cash than anyone and so they have the entirety of anyone.” The funding file is there. It’s absolutely amazing what they’ve accomplished” — praising Sequoia Capital, an early investor in Apple, Google, and not too long ago Airbnb.
7. “I rub my nostrils in my mistakes. I try to keep the issues as simple and elementary as possible. And I like the engineering idea of a margin of safety. I am a really blocky and tacky form of a thinker. I just try to stay away from stupidity” – describing his investing strategy.
8. “The only essential factor you want to do is stay away from silly errors. Know the sting of your personal aptitude. Doing this is very laborious because human thought naturally tries to make you believe that you are smarter than you. ”
11. “You will not be able to live a successful life without doing some difficult things that go wrong. It’s just the character of the game, and you won’t be brave enough if you try to stay away from every single reverse.”
12. “There’s a lot of people in it and the frenzy is great and the bounty programs are so silly. I think the returns will go down”- while answering a question about whether he expects returns in the stock market to be lower in the next 10 years as compared to the last 10.
13. “We are in very unknown waters. Now no one has come as far as cash printing without any trouble. We are so close to enjoying with the stove” – unprecedented financial easing in the latest months and Highlighting the dangers of aggressive fiscal spending.
14. “I can mind eating a five-course filet mignon dinner for 60 cents in Omaha after being somewhat of a boy. The world has really changed.”
15. “Nobody knows when the bubbles are about to burst. Although just because it’s the Nasdaq doesn’t suggest it’ll have another run like this again in a short amount of time. It’s been incredible. Either way it hasn’t been liked enough.”
16. “Focus on what Apple is worth compared to the empire of John D. Rockefeller. This has essentially been the most dramatic factor that has ever happened in the entire world-historic past of finance” – commenting on the rise in valuations of knowledgeable firms in recent times.
17. “Who would have guessed that one party-run Communist Chinese would have the world’s best financial file ever.”
18. “I don’t think Caltech can make good buyers out of most individuals. I think good buyers are somewhat like good chess gamers. They are literally born to be buyers.”
19. “You need to know a lot, although partly it is temperament, partly it is deferred gratification, you must be eager to participate. Good investing requires a strange mix of perseverance and aggression And many people never have it. It also requires a great deal of self-awareness about how much you recognize and what you don’t know. You need to know the sting of your personal worthiness, And many good people believe that they are smarter than they are. And naturally this is harmful and upsetting” – describing what makes a great investor.
20. “That which helps everyone get to the place that is going up, and it takes you with no expertise or work” – Outlining the Simplest Path to Success.
21. “If you pursue a profession with enough fanaticism, you are more likely to work than not have fanaticism.