Charlie Munger thinks investing is harder than it used to be

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The legendary Charlie Munger of Berkshire Hathaway joins Becky Quick to give his wisdom on the golden era of investing.

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I analysed PE of S&P over 130 years. Average PE of S&P index was just 13.5 from 1872 to 1991. From 1991 to 2021 it is 24.5. The average price increased by 81%. This is why it is so hard to find bargains with margin of safety today in American markets and also in most markets around the world.

tongobong
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How can things be valued fairly if the central banks keep injecting artificial QE stimulus and rig interest rates lower?

redtroika
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Really? It's easy peezy these days. The stock market is obviously subsidized by the Fed so you just get an index fund and watch it climb with corrupt efficiency. Furthermore there are super easy real estate investments in places where Californians are fleeing to, like Nevada and Texas.

jacobklein
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He has no idea about the type of innovation that is coming. Poor lad.

shorties
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Who cares about what this grandpa says? He missed Tesla completely.

shorties