Charlie Munger’s Advice on Investing and Life Choices that Make a Person Wealthy

As Berkshire’s Vice Chairman, the 95-year-old Munger is Warren Buffett’s right-hand man. He’s also an investing legend in his own right. Munger ran a firm in the 1960s and ’70s that scored returns of over 24% per year. He’s here to talk about how to make investment decisions and life choices that help secure prosperity and longevity.

Notes

  • Reason why the people can’t think clearly about investing or decisions is because the standard human condition has a lot of miscognition
  • Federal debt matters because printing money has obvious negative consequences, but no body knows how much is too much
  • Buffett original technic of purchasing companies more for what their worth was not going to scale and Munger’s technique of buying undervalued great businesses was the moving factor that moved Berkshire to the big leagues
  • Value of keeping it simple investing: key advantage that Berkshire has is to give power to really smart people and for them to make quick decisions (remove the bureaucratic system)
  • Not afraid to let cash build up, only take the right opportunities
  • Ashamed for missing Google because just did not pay enough attention to the company
  • Don’t think about IPOs that are losing money, not Munger’s scene. Want to invest in companies he can predict with high degree of accuracy and doesn’t believe his methods can do that with unicorn companies like Uber
  • Thinks that some companies are repurchasing shares improperly with the intention to prop up value rather than investing back into the companies when the value is understated
  • Being rational and discipline is the most important