Charles Munger – Top 10 Holdings Q12019

Johnny HopkinsCharles Munger, Portfolio Management2 Comments

One of the best resources for investors are the publicly available 13F-HR documents that each fund is required to submit to the SEC. These documents allow investors to track their favorite superinvestors, their fund’s current holdings, plus their new buys and sold out positions. We spend a lot of time here at The Acquirer’s Multiple digging through these 13F-HR documents … Read More

Charles Munger: Here’s Why Investing Is So Much Tougher Today

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Here’s a great recent interview with CNBC’s Becky Quick and Charles Munger discussing the difficulty of being an investor today, compared to when he and Warren started. Here’s an excerpt from the interview: Becky Quick: Charlie thank you very much for taking the time to sit down with us today. You spent a lot of time today talking about how … Read More

Charles Munger: The Most Important Investing Trick I Learnt From My Grandfather

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We’ve just been watching Charlie Munger at the latest Daily Journal meeting in which he recounts the most important investing trick he learnt from his grandfather, saying: I had a grandfather who was very useful to me. My mother’s grandfather. He was a pioneer. He came out to Iowa with no money but youth and health and took it away … Read More

Charles Munger: EMT – The Stock Market Ain’t Like Physics, It’s Like A Mob At A Football Game

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Here’s a great short video with Charles Munger talking about The Efficient Market Theory saying: “Well I think we’ve had some effect, but they’re still teaching The Efficient Market Theory. Remember the old ideas die hard. And by the way it’s roughly right. It’s just the very hard form which everybody believed. They believed it was impossible and was rare. … Read More

Charles Munger: Munger’s Rule!

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Every time we listen to Charles Mungers’ famous speech titled – The Psychology of Human Misjudgement, we learn something new. One example is Munger’s example of the problem with having a ‘Board of Directors’ in American companies, saying: Finally the institution of the board of directors of a major human American company. Well, the top guy is sitting there, he’s … Read More

Charles Munger: If Mozart Can’t Get By With This Kind Of Asinine Conduct I Don’t Think You Should Try

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Here’s some more classic Munger. During his USC Law Commencement Speech, Munger provides some insights into counteracting the self serving bias, which includes overspending ones income, saying: (6:38) “Another thing of course that does one in is the self-serving bias to which we’re all subject.” “You think that your ‘little me’ is entitled to do what it wants to do and for instance why … Read More

Charles Munger: One Filter That’s Very Useful For Investors

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During the 1997 Berkshire Hathaway Shareholder Meeting, Warren Buffett and Charlie Munger were asked their thoughts on calculating intrinsic value. Here’s Munger’s response: I would argue that one filter that’s useful in investing is the simple idea of opportunity cost. If you have one opportunity that you already have available in large quantity and you like it better than 98% … Read More

Charles Munger: Civilized People Don’t Buy Gold

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Here’s some classic Munger wisdom on ‘gold’ as an investment: “I think gold is a great thing to sow into your garments if you’re a Jewish family in Vienna in 1939 but, I think civilized people don’t buy gold, they invest in productive businesses.” (Source: YouTube)

Charles Munger – I Frequently Sit In A Room And Converse With Dead People While The People Around Me Are Irritated

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Here’s a great compilation on reading habits and books by Warren Buffett and Charles Munger. Our favorite quote from the video is when Munger is asked how he was able to concentrate and balance his reading with so many children around when his family was younger. His response is: “I have the kind of mind that if I want to … Read More

Charles Munger: Investing In Shares Is Much Easier Than Investing In Real Estate, Here’s Why

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Here’s a great little video in which Charles Munger is discussing why investing in shares is better than investing in real estate. Munger says: “The trouble with real estate is that everybody else understands it, and the people who you’re dealing with and competed with, they’ve specialized in a little twelve blocks or a little industry. They know more about … Read More

Charles Munger: Why Did Ben Graham’s Net Nets Disappear

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Just been re-reading Charles Mungers’ classic speech – A Lesson on Elementary, Worldly Wisdom As It Relates To Investment Management & Business. In it Munger provides some great insights into what happened to the net net stocks popularized by Ben Graham. Here’s an excerpt from that speech: The second basic approach is the one that Ben Graham used—much admired by … Read More

Charles Munger: A Parody About The Great Recession

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One of the best articles ever written about the ‘Great Recession’ is Charles Munger’s – Parody Describing The Contributions of Wantmore, Tweakmore, Totalscum, Countwrong, and Obvilious To The Tragic ‘Great Recession’ in Boneheadia and The Thoughts of Some People Relating To The Disaster. While the entire article is six pages long it’s a must read for all investors. Here’s an … Read More

Charles Munger: The Trouble With Economists & Economics

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Some years ago Shane Parrish at Farnam Street did a podcast in which he read the full text of Charlie Munger’s presentation – Academic Economics: Strengths and Weaknesses, after Considering Interdisciplinary Needs. It’s a must listen to for all investors. Here’s an excerpt from Munger’s presentation: 3) Physics Envy The third weakness that I find in economics is what 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 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

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