'I Got RICH When I Understood THIS' — Charlie Munger | Daily Journal 2017 【C:C.M Ep.262】

Charlie Munger, Warren Buffet's partner, was asked if he would invest a billion dollars in just three stocks. Munger responded that he's comfortable with a non-diversified portfolio, and he himself has only three stocks. Munger believes diversification is a rule for those who don't know anything. He thinks that if you're capable of figuring out something that will work better, you only need one cinch. Munger credits his success to learning from dead people through books, which are very convenient to reach.

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► Video Transcript & YAPSS Takeaway:
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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"I Got RICH When I Understood THIS" — Charlie Munger | Daily Journal 2017 【C:C.M Ep.262】

[Riggsnic_co]

These are very valuable rules for anybody who wants to get rich. Unfortunately, most people who will watch this video will not really be able to apply the principles. We may not want to admit, but as Warren Buffett once said, investing is like any other profession-- it requires a certain level of expertise. No surprise that some people are losing a lot of money in the bear market, while others are making hundreds of thousands in profit. I just don't know how they do it. I have about $89k now to put in the market.

[roseroland]

This is quite enlightening. The fact that the financial markets are incredibly irrational in the near term is vital for beginners to remember. Always be prepared for the unanticipated. Chance works in this way. Long-term investments are always preferred by me due to the market's inherent dangers.

[bjlpfro]

I remember when IBM and GE were the never let you down stocks.

[Aziz__]

Warren Buffett has mastered what patience looks like. He has stuck to the markets, having a long term view on the markets. This is what I'm struggling to do, trying to learn how to not react to market news about inflation and all. I have currently set aside about $553k to put in the market now that prices are down. Any ideas?

[paulfarr]

Yeah. Except 2 of these are literally massive blocks of diversification. 🤔

[mariahkovi]

Thanks for this amazing information!! If you don't find a means of mult'iplying your mo'ney, you will wake up one day and real'ize that the money you tho-ught you had, had been exhau-sted. Inves-ting is a lad'der to cli'mb the finan-cial wall

[bstone]

One stock (Costco) and two closet mutual funds (Berkshire and Himalayan).

[chrisbentley]

My first two corporate finance classes had no mention of diversification in the text books. Rather, focus was on analysis, working capital, long term financing, capital budgeting, mergers, etc. this was early 90s - so much has changed

[guidelines]

Just stumbled across this video... Here's my 2 cents. Charlie Munger or Warren Buffet for that matter did not become billionaires as a result of smart investing. I’m not saying they aren’t exceptional investors. They are. But did they invest their way to the top? No! They do business. They are businessmen. Absolutely and above all. They make things happen. And they are extremely good at that. Do the math. There is absolutely no way you can become a billionaire by just investing from scratch. Even if you start with 100kUSD which is a lot of money to start with, and somehow manage to get unrealistically high yearly returns of e.g., 20 % constantly. It just doesn't add up. So... It's not what you do with YOUR money. It's what you do with OTHER PEOPLE'S money. That can provide you enormous leverage. Just investing, picking stocks or whatever instruments you choose... does not do the magic. So, if you want to become wealthy let your money work for you. If you want to become a billionaire you’ve got to become a businessman and let other people’s money work for you. Easier said than done, though.

[jamesbrent]

The dead aren't going to cram misinformation and faulty political agendas down your throat like some of the living. Love Charlie, his advice and his lively humor.

[MartinJG]

4:25. Brilliant man who, fortunately for us, is still hanging in there with plenty to offer and as sharp as ever :).

[art_of_investing_]

“I have made bad business decisions—you can’t live a successful life without doing some difficult things that go wrong. That’s just the nature of the game.”

— Charlie Munger

[Ottoish]

Berkshire is already heavily diversified. It owns a load of different underlying businesses and a portfolio of diversified shares. So it doesn't really count as "one stock".

[UziGameGP]

Buy 5 quality stocks and stay in the market for 10+ years to become rich, 20+ years to become filthy rich, 30+ years to become a walking bank.

[Starbat]

This was enlightening and encouraging.

[khaledsrrr]

I immensely appreciate all you did/do YAPSS
Charlie is my North Star.
RIP Charlie ❤

[robedmund]

Too many people want someone else to do the investing for them. They don't want to study; they don't want to pay attention; they don't want to keep re-learning about the companies in which they invest. Charlie Munger did all of these things. The three stocks he mentioned that he currently holds were not the stocks he began with. He changed with the times and kept learning. He also got lucky (which is a part of anyone's success). But the more your study, learn and work, the luckier you tend to get.

[rosaoddin]

And how does an individual investor buy into this Himalaya Capital??

[victorhugojimenez]

Es oro puro todos los consejos de Charli y son simples

[sophiada]

My marriage of 7yrs is about to crash. I am so much depressed right now and wish I never used the money I and my husband have been saving to buy our first family home. I used the money to trade in the market and everything is gone. Now he wants to divorce me. I love my husband s0 much and I don't want him to leave me.I feel like killing myself right now