Charlie Munger's SCARY Inflation Warning (2022)

At the 2022 Daily Journal meeting, Charlie Munger shared his thoughts on inflation, monetary policy, rising interest rates, and US national debt. Inflation is a big concern for investors. In this video, Charlie warns about the high inflation that the United States is currently experiencing. He discusses how money printing and other monetary policy decisions have laid to high valuations for asset prices. Munger describes excessive money printing as "playing with fire".

After watching this video, you will have a better understanding of the following topics: inflation, Charlie Munger's thoughts on inflation, rising interest rates, why inflation is bad, inflation explained, and the recent Daily Journal Corporation meeting.

Link to Investor Center Patreon where I post all the tools and resources I personally used to grow my portfolio to $300,000 at 24 years old:

[sophiastuart]

‘’Courage taught me no matter how bad a crisis gets ... any sound investment will eventually pay off." — Carlos Slim Helu

[akshayhiremath]

Thanks for this video. I have seen some more of your videos and I feel you make things very relevant. Keep up the good work.

[bjkjoseph]

I think Charlie said the least bad alternative is to raise the interest rates that’s what I got out of it they’ve been too low for too long price of a car is ridiculous the price of food is ridiculous back in the 70s we didn’t have to worry about the high cost of healthcare like today some people are paying half their salary to health insurance companies.. No one talks about this

[stanleylewis]

Liked the video & Charlie.

My one criticism is using Germany in the 1920s. It was simply too much a different situation to use in any comparison, and frankly has been too overused as a scare tactic --- Germany's wealth had been drained and industrial base ruined not only by WWI but by the ongoing Treaty of Versailles terms (restitution payment), its inability to borrow in its own currency (or to secure loans at all), and other factors (not to mention its own bad policy decisions). Japan has far more similarities, through their population decline (which many analysis believe to be the core inhibitor for inflation there) has been for a long period and deeper than expected here.

[christoph]

Like your channel. Great video with diversified view on the possible scenarios. Keep going 👍

[ravindertalwar]

Congratulations 👏 and wonderful presentation

[cliffluxion]

Inflation now is not yet nearly as serious as what we lived and invested through in the 70's and early 80's.
Time will tell where we end up this time around.

[caddiea]

I think Munger saying he owns 4 assets is misleading. Through his Berkshire holding alone, he actually owns at least 40+ stocks. In addition, Berkshire had about 1/3 of it’s assets in cash waiting for prices to become more reasonable (ie: lower stock prices). It’s like me saying I don’t like diversity & I only own only 1 asset which is the S&P 500.

[InvestorCenter]

Link to Investor Center Patreon where I post all the tools and resources I personally used to grow my portfolio to $300, 000 at 24 years old:

[Nilsis]

Japan is a nation with a homogenous population, with a certain fairly thight traditional lifestyle that informs behavior, there is no real pressure from demand of the population because it is aging, with almost no immigrants, there is no pressure on the housing market so people can buy a cheap (rural) home if they want. This variable is in my opinion one of the reasons that there is no inflation in Japan.

[penserautrement]

At 13:50, you say, "maybe that crash never comes." Sorry, but that's not realistic. When the Fed starts sharply rising interest rates, the stock market WILL crash, and big time. And NO company's stock will be spared, not even that of high quality companies.

In fact, this has already begun.

As usual, most investors will panic about the Fed's interest rate hikes and sell their stocks like crazy... and you will be hit by that, whether you keep your stocks or not.

The Titanic has already begun to sink. Your advice is essentially, "don't worry, venturing out to the sea in a lifeboat is even more dangerous, let's stay on the Titanic and wait patiently for a rescue ship." That is advice I will never take.

[jaydeermazier]

I am a recent subscriber of your content and I really enjoy it and have recommended it to friends, family and colleagues of mine.

During the video lots of comparisons were made between Japan and America and how increasing the money supply does not necessarily cause inflation, which is not necessarily true.
Inflation is not just the relationship of the value of your currency to the value of goods that can be purchased but it is also in relation to other currencies. We don’t want inflation to occur the way it did in relation to other currencies as japans has, but to be honest it could have been worse.
I live in Canada and during the pandemic the government printed money and gave it to the direct thru government payments. Further during this time people were later off, so thinking about it people received money for no economic output aka working for it. What this did was increase the money supply and unemployment went higher and demand for goods either marginally went higher or stayed the same.

Looking at companies because of the COVID restrictions and laying off people the amount of goods that could have been produced weren’t but the inventory were being depleted because the same workers who would have traded time for money and then used that money to buy those goods didn’t work for the money and only bought.

Looking at japan they printed money but didn’t give it away to it’s citizens like Canada and the us did. Instead they were forced to innovate and become more efficient at producing goods.

All of this means that we could be in for a rough road ahead because inflation could be permanent with all the Canadian and us citizens potentially being paid more to do the same job as before the pandemic.

This to me represents the difference between Japan situation and Canada and is now.

[magicbus]

Good job. Like Charley. He is a smart investor.

[penserautrement]

Here's my 2 cents regarding the 2 problems you raised at the end of the video (WRT to the "I'll wait the market crash out" strategy):

1) Inflation is indeed eating away at your money. However, when the next stock market crash comes, it won't eat away at your capital, it will cause a DISASTER. Better cut your hand off than an entire arm.

2) If you're really that worried about inflation, park your money in gold and wait until the next stock market crash.

3) As for taxes on any assets you sell at a profit : Hey, I'm sorry, but you pay taxes on EVERY asset you sell (and ALL income you derive from it, be it rent or dividends). And that's whether you sell it in good times or bad.

But hey, isn"t selling at a PROFIT what we want? Unless you're applying Buffett's "buy and hold forever" philosophy, that is...

[mjss]

@11:50

I have heard both him and Warren make that stupid claim and act one doesn't need to diversify.

Berkshire is a mutual fund at this point and is giving him dozens of companies. Too act like it is one is just stupid.

[AnishSana]

Great video as always! Would you be willing to create a video explaining your rental property investment strategy? For example, you mentioned that you're focusing on the Mid West market right now. How did you come to that conclusion? Any advice and research strategies that you can share? Thanks!

[Pictureinpicture]

Cut from all currencies 2 zeros and reevaluate gold to 15000$ and after that high crime for corruption whatever corruption finds 25 years in jail

[happios]

He should buy some rat poison as a hedge against inflation

[edan]

uhm how thick are those glasses of his....

[rhwalker]

Charlie is doing himself and his heirs such a disservice by not being willing to learn about Bitcoin 🤦🏼‍♂️