Charlie Munger: I Made Four Or Five Hundred Million Dollars From Two Decisions, With Almost No Risk

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In this short interview Charles Munger explains how he made four or five hundred million dollars from just two decisions: “I talked about patience. I read Barron’s for fifty years. In fifty years I found one investment opportunity in Barron’s. I made about $80 Million, with almost no risk. I took the $80 Million and gave it to Li Lu … Read More

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

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 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

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

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

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