Charlie Munger Warns of High Inflation Consequences

Charlie Munger (Vice Chairman of Berkshire Hathaway) is concerned about the rising inflation and money printing occuring in the United States. Just a few days ago he sat down for the Daily Journal Corp's annual shareholder meeting, where he discussed a range of topics including how to invest, investing in China, Alibaba stock, Costco stock and most importantly what to do about this inflation. In this video let's break down Charlie's thoughts and see what we should be doing about rising inflation.

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#charliemunger #inflation

DISCLAIMER:
Neither New Money or Brandon van der Kolk are financial advisers. The information provided in this video is for general information only and should not be taken as professional advice. There are risks involved with stock market investing and consumers should not act upon the content or information found here without first seeking advice from an accountant, financial planner, lawyer or other professional. Consumers should always research companies individually and define a strategy before making decisions. Brandon van der Kolk and New Money are not liable for any loss incurred, arising from the use of, or reliance on, the information provided by this video.

[alberttalbott]

for being 97 years old charlie is dead on the mark and sharp as a tack. go charlie

[jalepeno]

I really appreciate you putting these videos together and sifting through the clips then explaining them out. It’s easier on my novice brain. 👍🏻

[loangxuong]

4:53 it make sense that japan don't have high inflation. before printing money japan suffer from deflation
and they print a small amount every year(small amount compared to us ) Japan has one of the highest savings rates in the world.

[EikTuKaTu]

So if same inflation formula is used Today, we are already exceeding 15% inflation. The only reason it is 7.5% now, its because government have changed the calculations. Check ShadowStats.

[danielkey]

Inflation is producing a slew of problems throughout the world, including food shortages, diesel and heating fuel shortages, and housing prices and financial market crash. This global collapse might end up being a part of us for a very long time. With inflation currently at about 9%, my primary concern is how to maximize my savings/retirement fund of about $300k which has been sitting duck since forever with zero to no gains.

[carmenarlo]

I liked your comparison of different portfolio and asset allocation. I do have these questions
1) if you have made enough money to sit out this scare, should you?if so, how do I protect my wealth from Inflation

[jamesrussell]

Charlie is oldschool, and oldschool rules. in my opinion he is saying that at the moment its better the devil you know - so interest rate raise should mean move your capital to energy and hold.

So happy to be alive when charlie is still giving his opinion, not many men would bother with his success

so thank you Charlie.

[dabbbles]

But Charlie Munger is correct: 'Diversification' is like backing ALL the horses in a race in the hope that the winner will pay enough to cover all the losses.

[KelechIwuaba]

We really underestimate the fiscal policy side of this. If there is one thing we've learned is that it's the Treasury not the Fed that really has a say on inflation. When you give people a bunch of money they will spend it one something.

[charliefinnie]

Who would of thought that printing money would lead to inflation

[malikricci]

Inflation is NOT the reduced value of money, it’s the rise of cost of goods as you first stated. ONE outcome of inflation is the reduced value of money among other things. Great video :)

[endrebagdi]

I think it's key to understand the difference between fiscal and monetary stimulus. Qe does not cause more currency supply in the real economy because banks that create money in the real economy. QE is just an asset swap on the balance sheet. But with fiscal stimulus they directly increase currency supply which is inflationary. In the same time we can have inflation in everyday stuff and a total collapse in asset prices.

[Santixd]

Congratulations, very good presentation and analysis of Charlie´s interview. thanks!

[fdadrtrttewrt]

I think the Fed must raise the interest rate little by little if inflation isn’t reduced and I don’t see why it would after the recent increase in the money supply. The stock market is so overvalued I welcome it. Charlie shows us that the smartest people say “I don’t know” the most.

[arigutman]

When Munger speaks, we should all be listening.. However, nothing he says should be a surprise to us all. and if anything, having his insight only should shower us with confidence to take his very same investment approach which is thinking long-term and investing with a long-term timeline.. I have certainly been capitalizing on this volatility knowing full well this too shall pass!

[maxsterling]

It is too late already. Back in the 80s, the national debt wasn't as high as it is now. Volcker could increase the interest rate and US government won't default on its debt obligations. This is not the case now. The national debt is 30 Trillion.

[nicecutg]

The US government altered the way they calculate consumer price inflation after the recession in the 70s. Using the old calculation method, inflation now is already at 15% ...

[aazimmermann]

Hey Brandon can you do a video on the Australian economy and interest rates?

[owenkellogg]

I like the respect for elders on this channel.

[amandaj.]

Sad fact is, its pretty obvious we are headed for hyperinflation. I think stores better have tight security because when people can't afford to feed their families, things might get ugly.