Warren Buffett and Charlie Munger talk about dealing with Macro economic factors

Behavioural finance is probably the most under-rated aspect of successful investing. In an attempt to further the cause of enlightenment, We are reproducing here an extract of WB's take on behavioural patterns (Anchor bias) and how they deal with Macro economic factors.

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"Micro economics is what we do, Macro economics is what we put up with" -C.Munger

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ALSO WATCH (link at end of this video)

**Carl Icahn**

is likely the greatest activist investor, and one of the most famous investors of our time. He likes to get his hands dirty and is a specialist in buying up companies he thinks are poorly managed, before turning them around for a quick profit.

His strategy involves getting on the board of companies he invests in, then he cleans house. He’ll either get the company making money again or break it up and sell off the profitable parts.

He’s such a successful business investor that mere rumours of his involvement is enough to get other investment managers buying up shares of said company, raising the stock price. This phenomenon is known as the Icahn Lift.

Invest like Carl Icahn:

Buy up stakes in poorly managed companies and manage them yourself
Take feelings out of investing

**Bill Ackman**

Bill Ackman is often compared with Carl Icahn because they are both activist investors. Out of the top business investors, Ackman isn’t afraid to voice to his opinions. He correctly predicted the 2008 recession and is famous for his high profile bet against Herbalife – going so far as to call them out for operating a pyramid scheme.

Ackman has an incredible track record, turning $50 million into $12 billion with Pershing Square Capital. That sort of return places him firmly in the pantheon of the most successful investors of all-time.

Invest like Bill Ackman:

Invest in solid companies that need a little financial cushion.
Guide companies to profitability, and then get out
Speak your mind

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"we know a lot about micro economic factors, not a about macro factors" -C.Munger