In his latest commentary titled – It’s Not Supposed To Be Easy, Wally Weitz uses one of Charlie Munger’s age-old quotes to explain the current investing environment. Here’s an excerpt from the commentary:
In our combined 70+ years of investing, there’s a lesson about investing that seems to repeat itself time and time again.
Charlie Munger sums it up quite frankly, saying “It’s not supposed to be easy. Anyone who finds it easy is stupid.”
While we are not in the business of making forecasts, the road ahead surely contains some “not easy” moments. It always does. But we are confident that we have the right (stock and bond) raw materials for investment success, and we also have the intangible ingredients — patience, price discipline and conviction — which are just as important.
Seinfeld fans may remember the “worlds collide” episode (excerpts available on YouTube) in which Jerry and Elaine invite George’s girlfriend to spend some time with them. George and Kramer immediately recognize the danger of letting his two separate social “worlds” come into contact with each other. Sure enough, unfortunate consequences ensue. Somehow, this expression of worlds colliding comes to mind when we try to reconcile the competing ideas that the economy is booming yet still needs extraordinary government support.
We have been writing for a long time now about our concern that a world of near-zero interest rates and extremely generous deficit spending is not sustainable. It seems reasonable to look ahead to a more familiar world in which interest rates reflect supply and demand for credit, and in which government policies reflect a modicum of fiscal responsibility. In our opinion, such a transition is inevitable and would be positive for the economy.
You can read the entire commentary here:
Wally Weitz Q2 2021 Market Commentary
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