Charlie Munger: Moral Investing – We Could See It Was Like Putting $100 Million In A Bushel Basket And Setting It On Fire As We Walked Away

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Here’s a great video with Charles Munger and Warren Buffett at the 2005 Berkshire Hathaway shareholder meeting in which they discuss the moral distinction between buying a stock and a company. Here’s an excerpt from the video: CHARLIE MUNGER: Yeah. I think he’s asking in part, are there some businesses we won’t have as subsidiaries in Berkshire even though they’re … Read More

Charlie Munger: That Decision Has Cost Me Now About $5 Billion

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Here’s a great recent interview with Charlie Munger & Li Lui in which Munger recalls one of his greatest investment mistakes that cost him $5 Billion. Here’s his recollection: Munger: Let’s take a simple question. As I said in that book. They offered me three hundred shares in Belridge Oil, which I bought because I had the money on hand. They … Read More

Charlie Munger On Telsa and Elon Musk

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We’ve just been watching a great recent interview with Charlie Munger in which he was asked his thoughts on Telsa and Elon Musk. Here’s his response: Munger: Well it’s already created more significance than anybody would have predicted and its founder is bold and brilliant and swings for the fences. Of course people like that get some remarkable results and … Read More

Charlie Munger: Look For Businesses Using The Cancer Surgery Formula

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In a 1995 edition of The Outstanding Investor Digest, Charlie Munger recounted the types of business models that he and Warren Buffett like to invest in. Most noteworthy is what he calls the ‘cancer surgery formula’ model saying: “I’ve had many friends in the sick-business-fix-up-game over a long lifetime. And they practically all use the following formula — I call … Read More

Charles Munger: “If You Won’t Attack A Problem While It’s Solvable And Wait Until It’s Unfixable, You Can Argue That You’re So Damn Foolish That You Deserve The Problem”

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While not specifically an investing book, The Art of the Good Life: Clear Thinking for Business and a Better Life, by Rolf Dobelli provides some great lessons for investors. There’s one passage in particular titled – Reality Doesn’t Care About Your Feelings; or, Why Every False Step Improves Your Life – which basically says – we all make investing mistakes, what’s important however is … Read More

Charles Munger: The Secret Ingredients That Make Berkshire, And The Daily Journal, So Successful

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We’ve just been watching the 2017 Daily Journal Annual Meeting in which Charlie Munger, at 12:18 on the video below, discloses some of the secret ingredients that have made Berkshire and The Daily Journal successful. Here’s an excerpt from the meeting where Munger is speaking about DJCO’s software business: When I was a lawyer, there was a saying that I’ve … Read More

Charlie Munger: The First Rule Of Value Investing

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Here’s a great interview with Charlie Munger and Yahoo Finance Editor-In-Chief Andy Serwer. During the interview Munger discusses the first rule of value investing: Value investing has changed over the years, but the fundamental way its disciples think about it hasn’t, according to Berkshire Hathaway (BRK.A, BRK.B) vice chair Charlie Munger. “It’s gotten hard in the United States to find easy … Read More

Charlie Munger: The Stock Picking Industry Is Four Or Five Percent Super-Rational, Disciplined People, And The Rest Of Them Are Sort Of Like Faith-Healers Or Shamans

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One of the best resources for investors are the Daily Journal Annual Meetings chaired by Charles Munger. During the 2015 Annual Meeting Munger was asked the following question regarding indexing and what it might lead to: “Indexing has grown a lot in the last thirty years or so as a form of investment management for a lot of good reasons. You … Read More

Charlie Munger: The Parable Of Basicland

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Several years ago, Charles Munger wrote a great piece called – Basically, It’s Over – A parable about how one nation came to financial ruin. Munger provides a cautionary warning through the story of a fictional place called ‘Basicland’. A large, unpopulated island in the Pacific Ocean that is rich in all nature’s bounty except coal, oil and natural gas. It’s … Read More

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

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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

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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

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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