Charlie Munger, business partner of Warren Buffett, recently spoke at the 2019 Daily Journal Annual Meeting. You can watch the full recording here.
Here are my key takeaways:
#1: Fish where the fish are
For Charlie, that means China. High-quality companies in China are currently available for cheaper prices than similar companies in the USA.
#2: China
Charlie has outsourced his China investments to Li Lu. This is the only time he has ever given money to an external manager.
#3: Don’t be too active
As a value investor, you need to be okay with inactivity. Be a good picker and then hold for a very long time. For example, Charlie has held Berkshire Hathaway and Costco for many decades.
#4: No exit strategy
Charlie does not have an exit strategy or price target for his investments. He rarely sells.
#5: Have a “Too hard” bucket
Charlie has three categories when evaluating investing opportunities: Yes / No / Too hard. Especially the last category solves many problems. Charlie looks for the easy and obvious opportunities, and discards the rest.
#6: Charlie on Stoicism
He admires stoicism and has learned a lot from stoic thinkers. I didn’t expect anything else. In fact, I view Charlie and Warren as modern stoics!
