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 some of my learnings:
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.
China
Charlie has outsourced his China investments to Li Lu. This is the only time he has ever given money to an external manager.
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.
No exit strategy
Charlie does not have an exit strategy or price target for his investments. He rarely sells.
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.
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!