Charlie Munger: How to Get Rich During Inflation

According to Charlie Munger, “If you aren’t confused by what’s going on, you’re not paying attention”. Inflation has been at its highest levels in generations in recent years. The impacts of which have been devastating. It’s now even estimated that a staggering 61% of Americans are experiencing severe financial hardship due to this high inflation. However, there’s a hope out there that the high levels of inflation seen in recent years was just a temporary thing. The belief is that relatively shortly, inflation will return to very low levels. Legendary investor Charlie Munger disagreed. Before his passing, Munger was ringing alarm bells about the future of inflation and the economy.

In this video, we're going to cover why Charlie Munger believed inflation is here to stay, and arguably most importantly, how you can protect your money from the devastating impacts of high inflation. Over the past couple of years, inflation has been at levels not seen in decades. In June of 2022, inflation hit a peak of 9.1%. You have to go back roughly 40 years to the early 1980s to find a period of time in which inflation was this high.

As Charlie mentioned in the clip, a big cause of this sky high inflation is money printing. Take a look at this chart of the money supply in the United States dating back to 1960. Money supply is exactly what it sounds like, it is a measure of all the readily available money floating around in the economy. As we can see in the chart here, the money supply in the US was growing at an ever increasing rate. However, things really started to get crazy in 2020. In order to prevent a widespread financial collapse, the US Federal Reserve took truly unprecedented actions. This, combined with drastic steps by the government to support the economy, lead to trillions of new dollars getting printed. In previous interviews, Charlie Munger has compared this massive amount of money printing to an individual using illicit substances. At first, it feels absolutely amazing. But over time, there are very severe consequences. When it comes to the economy, one of those severe consequences is inflation. To quote the famous economist Milton Friedman, inflation happens when there is too much money chasing too few goods. While that may sound like a complicated concept, trust me, it’s actually very simple.

This video covers topics such as How to Invest During Inflation, Charlie Munger Inflation, Stock Market During Inflation, Investing During Inflation, Charlie Munger interview, Inflation, Inflation Housing Market, Inflation Real Estate, Charlie Munger Best Moments, and Charlie Munger latest interview.

[mayalucia-]

Transfer of wealth usually occur during inflation and market crash at times like this. So for me, this is time for aggressive investment. The more stocks drop, the more I buy. I'm just focused on making better investments and earning more as recession fear increases.

[martinreilly]

“In reality, Charlie was the ‘architect’ of the present Berkshire, and I acted as the ‘general contractor’ to carry out the day-by-day construction of his vision.” - WB

[reedjack]

If my economist ain't got eyes like this, then I don't want him. Clearly, this dude has been staring at numbers and figures his whole life. Respect.

[HuahKueh]

so the summary is just 2 points. 1 ) invest in asset light business. 2) spend well below your means. but how does it get me rich?

[joec]

All of the tutorials here are only effective if you have money to invest. Most people are living check to check on a daily basis. When the feds raise the rates most people live a check and a half behind every week.

[Edward-zwld]

So, let Charlie talk and forget the play by play

[ptliang]

Thank you so much!! Please make more!!!

[libertyjustice]

The only way to make money during inflation is to be rich to begin with. Without money to invest, its pointless.

[Frankjacob]

Inflation has a more pronounced impact on individuals compared to a downturn in the stock or housing market because it directly affects the cost of living, which people immediately feel. It's understandable that negative market sentiment is currently widespread. Assistance is essential for navigating and surviving in this economy.

[scottjboswell]

Very good video. A great share. Thanks 👍

[jamesp]

Airlines are one of the many garbage investments I never make, their debt loads only increase overtime and they can never seem to get their heads above water financially. Airlines are also highly cyclical and at times need the tax payer to bail them out so they can continue sucking at running a business.

[davepelletier]

Thanks for the detailed explanation of the obvious!

[MasonChris-krmu]

I committed $600K into some real assets like infrastructure and also looked into certain types of fixed-income securities. The idea is to have a balanced portfolio while taking advantage of the current liquidity environment. What are better strategies to optimize my portfolio?

[Eden]

Very good and well explained. Thank you

[Midevlmod]

Thank you your channel is amazing. I am learning so much from you. Plus your voice is so calming love listening to your channel.😊❤

[lesleyjohnson]

Really appreciate your videos! Absolutely love Milton Friedman. His ‘Freedom to Choose’ series is amazing!! ❤

[godson]

People are focused on revenue but inflationary premiums are apart of the equation because of the assumption of effects on particular returns. Supply and demand on on security might have more volatility of lets say commercial real estate. During COVID times, there were tremendous losses during this time period of operational costs, and nobody was actually in the office to maximize returns by being there. Hence, things were conducted remotely. So even if steady revenue were still coming in from the business but was it enough or above that of the return on having that physical asset. So a stock may have elements involved of people were buying less in store, but the demand for online and 3rd party purchasing (Uber Eats, Amazon etc.) So businesses that operate online strictly vs a brick and mortar, had better returns because operational costs were actually lower.

[mmm-cake]

Elon should make a humanoid robot of Charlie Munger for Warren 🤘🏼😝

[ASist]

Yeah, but at the end of the day you need to have asset heavy businesses in your country..

[sandponics]

I want to know how to stay alive during and economic collapse. What goes up always come down, usually with a bang.