Charlie Munger Can Be Merciless If He Believes He Has Caught Someone In An Act Of Silly Self-Deception

Johnny HopkinsCharles MungerLeave a Comment

One of the most commonly used terms in the world of investing is – Cost of Capital. According to the Harvard Business Review website: – “The cost of capital is simply the return expected by those who provide capital for the business”. Warren Buffett provides his own explanation for the cost of capital in his Berkshire Hathaway owners manual as: “We … Read More

14 Of Charlie Munger’s Funniest Quotes

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Charlie Munger is known for his quick wit and sense of humor, and one of the best sources of Munger’s humorous quotes is Poor Charlie’s Almanack. Here are fourteen of Munger’s funniest quotes from the book: 1. I’d rather throw a viper down my shirt front than hire a compensation consultant. 2. When asked at a cocktail party whether he … Read More

Charlie Munger: The Importance of Planck Knowledge or Knowledgeable Investing

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Warren Buffett has often been quoted on the importance of knowledgeable investing and equally important – knowing what you don’t know. Two of his most famous quotes on the subject are: “What counts for most people in investing is not how much they know, but rather how realistically they define what they don’t know.” And: “There is nothing wrong with … Read More

Charlie Munger: “Why Were Warren Buffett And His Creation, Berkshire Hathaway, So Unusually Successful?”

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Last week the Daily Journal held its 2018 General Meeting chaired by Charles Munger. One of the key takeaways for us as small investors was when Munger said: “I do think that a very smart man who’s patient and aggressive in combination, is willing to work hard, to root around in untraveled places like thinly traded stocks and other odd … Read More

Charles Munger: How Do You Learn To Be A Great Investor

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One of our favorite investing books here at The Acquirer’s Multiple is – Damn Right: Behind the Scenes with Berkshire Hathaway Billionaire Charlie Munger. One of the best passages in the book covers Charlie Munger’s response to, “How Do You Learn To Be A Great Investor?”. Here’s an excerpt from the book: Berkshire Hathaway and Wesco investors listen carefully to maxims … Read More

Charlie Munger: How To Value A Business Or Company

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One of the best resources for investors are the Daily Journal Annual meetings chaired by Charles Munger. These meetings are full of valuable investing insights for investors. One example is the 2016 Annual Meeting in which Munger was asked, “What do you use to value a business or a company? How do you use the discount rate to calculate intrinsic … Read More

Charlie Munger – How To Dramatically Improve Your Financial Results

Johnny HopkinsCharles Munger, Warren BuffettLeave a Comment

Here’s a great passage from the book – Damn Right: Behind the Scenes with Berkshire Hathaway Billionaire Charlie Munger, in which Munger illustrates how your financial results can be dramatically improved by being prepared, on a few occasions in a lifetime, to act promptly in scale, in doing some simple and logical things. Here’s an excerpt from the book: Munger and Buffett … Read More

How To Invest Like… Charlie Munger, Warren Buffett’s Right-Hand Man

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Here’s a great article at The Telegraph discussing one of our favorite value investors here at The Acquirer’s Multiple, Charlie Munger. The article provides some great insights into Munger’s relationship with Buffett, his investing strategy, and his ten point investing checklist. Here’s an excerpt from that article: The world’s most famous investor, Warren Buffett, is renowned for pithy yet wise one-liners. … Read More

Charlie Munger – How Can Professional Investors, With Thorough Analysis, Continue To Underperform

Johnny HopkinsCharles Munger, Mohnish PabraiLeave a Comment

Here’s a great presentation by Mohnish Pabrai to the folks at Google. During the presentation Pabrai relays a story about a time he had dinner with a small group at the home of Charlie Munger. During the dinner Munger posed a question to the group: Why did the ‘best ideas fund’, established by the Capital Group, continually underperform? The ‘best … Read More

Charles Munger – “I Didn’t Mean To Get Rich I Just Overshot” + “Bitcoin is Total Insanity!!”

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We just watched an awesome interview with Charles Munger at The University of Michigan 2017. The interview is a fantastic insight into Munger’s journey though life and his career. Two of our favorite parts are when Munger talks about the role of luck in investing, and his thoughts on Bitcoin. Both responses are so Mungeresque! Here’s some excerpts from the … Read More

Buffett & Munger – The ‘Eureka Moment’ For Two Of The World’s Greatest Investors

Johnny HopkinsCharles Munger, Warren BuffettLeave a Comment

It seems that all of the great investors have a ‘eureka moment’ during their investing careers. A ‘eureka moment’ refers to the common human experience of suddenly understanding a previously incomprehensible problem or concept. Sometimes referred to as an ‘Aha’ moment. And so it was two of the world’s greatest investors, Charles Munger and Warren Buffett. Their eureka moment is … Read More

Lynch & Munger – Becoming A Better Investor Requires Thinking Outside Of Investing

Johnny HopkinsCharles Munger, Peter Lynch1 Comment

A lot of investors believe that the more you can learn about investing and investing techniques the better you will be as an investor. A typical value investor might spend time studying the fundamental assumptions and approaches to value investing, techniques for assessing fundamental value – balance sheet and earnings power approaches, or structuring value-based portfolios to control risk and … Read More

Superinvestors Agree That Business Schools Don’t Make You A Better Investor

Johnny HopkinsCharles Munger, Joel Greenblatt, Mohnish Pabrai, Peter Lynch, Warren Buffett1 Comment

While a lot of investors believe that a good finance course at one of the world’s most prestigious business schools is a sure-fire way to becoming a better investor, it seems that some of the greatest investors disagree. Here’s what Buffett, Munger, Greenblatt, Pabrai, and Lynch have to say about learning about investing at business school. In Warren Buffett’s 1996 … Read More

Warren Buffett – Mistakes of the First Twenty-Five Years

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One of the best resources available to investors are the Berkshire Hathaway shareholder letters. One of my personal favorites is the 1989 letter in which Warren Buffett wrote a piece called – Mistakes of the First Twenty-five Years (A Condensed Version). It’s a great insight into how even the greatest investors can make mistakes. The lesson of course is not to … Read More

Charlie Munger – Successful Investing Is About Being ‘Non-Idiotic’

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One of the best resources for investors are the Daily Journal Corporation shareholder meetings chaired by Charlie Munger. My personal favorite is his 2015 meeting in which he discusses Darwinism, Henry Singleton, human nature, and what he learned from Einstein. But there’s also a wonderful insight into how he was able to see that investing in good companies was a better … Read More

Charles Munger – 5 Ultrasimple Notions For Successful Investing

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One of my favorite investing books is – Damn Right: Behind the Scenes with Berkshire Hathaway Billionaire Charlie Munger, by Janet Lowe. The book is a great insight into Munger’s life, philosophy, and investing journey. One passage in the book which is of particular interest to investors is Munger’s five ultrasimple general notions that he finds helpful in solving problems. These … Read More

Charles Munger – Big Gains Invariably Mean Long Periods Of Underperformance

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Let’s face it, most investors are not prepared to go through long periods or short periods of underperformance in order to achieve outperformance. The only problem with that is that those investors will invariably miss out of the big gains achieved by the most successful investors. The good news is that if you are prepared to suffer through the heartburn … Read More

Is It Better To Buy The Stock And Watch The Price Drop Or Not Act And Watch The Price Soar? – Daniel Kahneman

Johnny HopkinsCharles Munger, Daniel Kahneman, Warren BuffettLeave a Comment

One of the most common predicaments facing investors is that they’ve analysed a stock, it meets with the investors criteria, and now it’s time to pull the trigger and buy the stock. But something happens, the investor ums and ahs and delays the decision to buy. Next thing you know three months later the value of the stock has risen by … Read More