Charlie Munger: 95% of People Have No Chance of Beating The S&P 500 Index | DJ 2017 【C:C.M Ep.255】

In this episode, Charlie Munger was asked regard to the proliferation of index funds, does he think that there may be issues with liquidity any time we go through another large crisis? And does he think that it will create large discrepancies between the price of the index fund and the values of the securities underneath?

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This is Daily Journal Annual Meeting with Charlie Munger on February 15, 2017.

☆Who is Charlie Munger?☆
Charlie Munger is vice chairman of Berkshire Hathaway and the closest partner of Warren Buffett. He is one of the best investors ever existed with his profound wisdom in investing, business and life. Prior joining Warren Buffett at Berkshire Hathaway, Charlie Munger ran an investment partnership that returned an average of 20% per year from 1962 to 1975. Meanwhile, the S&P 500 averaged an annual return of just 5% in that time.

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Charlie Munger: 95% of People Have No Chance of Beating The S&P 500 Index | DJ 2017 【C:C.M Ep.255】

[benitabussell]

The S&P 500, if one sticks with it, outpaces inflation by many percentage points. I personally don't care about the inflation. I just want my money to keep outgrowing the inflation rate. That is why I'm looking for companies now to put in $80k for a start. Just don't know how to proceed

[Riggsnic_co]

The S&P 500 finished down 20% in 2022. This means long term investors have a great starting point in 2023. Here are 4 very popular ETF’s: $VOO- S&P 500 fund $VTI- Total US stock market $QQQ- High growth, tech $SCHD- Growth + Dividends| I just tallied my dividends for the year;$167k Blessed and grateful, disciplined and focused.

[Higuannn]

80% equities 20% cash. I plan to take advantage of the s&p 500 as leading indicators predict above 10% rise by this year, my only issue is how to properly allocate a large stock/bond portfolio for substantial gains at minimum risk.

[sommersalt]

After experimenting with stocks since late 2021, I've shifted to 100% S&P 500. Still regretting not doing so from the start. Now i am also considering a return to individual stocks in 2024, but uncertain about safely investing close to 300k in the market.

[beastleemain]

This man is 99 years old sitting here spitting game, wild

[bevandashwood]

The s&p 500 index has been my best investment ever

[ranthonybab]

I beat it last year. -7٪ vs -17%. But 3 year and 10 year S&P whooped me. Can't beat the S&P 500. Facts

[grimbles]

people who watch this video:

"i'm the exception"

[vonwolly]

The days Charlie Monger and Warren Buffett pass will be very sad. Really have a lot of respect for both of them

[Jungkim]

For those claiming to have beaten the index. Beating it in one year and then losing to it in the subsequent years is not beating it, it’s losing to it. To claim to, “beat the index” one must beat its returns in such a way that your average returns are greater than the pre-inflation 9.7% stock market return over period of decade/in perpetuity. Additionally, don’t forget to include taxes incurred over your buy/sell, fund/manager fees, inflation adjustment to calculate your TRUE return.

[KX-rreu]

He was such a good person. Miss him. ❤️

[Electric_]

Yes, don’t even try. I recommend 50% S&P, 25% NASDAQ and 25% International mutual funds. Don’t bother buying individual stocks. It’s the simplistic and easy strategy that wins.

[markmiller]

When taxes and fees are factored in there is no better choice than a market index for any extended period (say 10 years or more). The best analogy I can give you is the following: I am telling you BEFORE a 15 horse race starts which horse is guaranteed to finish 2nd. If one is foolish enough to say "I will ignore that advice as I think I can pick the winner" than so be it. You can make a hell of a lot of money knowing which horse finishes 2nd.

[TrumpxDaily]

Spitting facts at a century old. Bless you Charlie

[cervelo]

Warren Buffet: "Why 99% of people should invest into the S&P 500"

[candyfloss]

thank you! my god Yapps! what happened to you? Frenvesting began much late and still managed to grow enormously.

[gmo]

Great answer. Maybe take it further by applying the five factor model or multiple indexes.

[demri]

You will learn a lot picking individual stocks and you may beat the indexes, too. It only takes one or two huge winners in your portfolio. For example, someone who had Monster Energy early on, or Apple, or held

[fastair]

the random stock clips of "financial people" really added to this video

[gormenfreeman]

The big take away distilled from Munger is that people who get what they want in life realize that life is just probabilities. You don't know what will happen if you don't make the bet! Every day we make 100s of bets whether we are aware of it or not. To take control of your life is to make conscious bets.