Charlie Munger is one of the best investors in history. An American businessman and philanthropist, he is known worldwide for being a partner of Warren Buffett and vice president of Berkshire Hathaway, a firm with which he has obtained notorious success. He was president of Wesco Financial Corporation from 1984 to 2011.
In addition, Munger has a speech that does not leave indifferent, with an iron control of the emotions, due to a notion of elemental and worldly wisdom, and a set of mental models that ranges from economics, business and psychology to ethics and management. This allows you to keep feelings out of your investments and thus avoid bad decisions. For the tycoon, it is important to follow the fundamental algorithm of life, which is none other than repeating what works.
In fact, his method has guided several generations of investors, but his ideas had not yet been presented as a unified theory.
This has been commissioned, for the first time, by Tren Griffin, a senior Microsoft executive and economic disseminator, who collects in the book Charlie Munger: The Complete Investor (Deusto, 19.95 euros) the essential steps of your investment strategy based on interviews, speeches, writings and letters to shareholders, all accompanied by comments from fund managers, investors and historians.
For the investor, one of the keys that has accompanied him throughout his life is reading, as well as a form of self-taught learning, since, in his opinion, “I have not met any wise person who did not always read.” And he confesses that both he and Warren Buffett are avid readers.
His investment strategy is based, as he has explained on more than one occasion, on analyzing few assets in depth and having a high dose of patience when investing in them. In fact, he says, it is easier for him to focus on five investments that he has a good chance of getting right than it is to find a hundred. And if an investment fails, he advises not to give up, since “capitalism without failure is like religion without hell.”
As an ideology of life, which can be extrapolated to finances, he advises not to be envious, or resentful, or to spend more than what is entered, in addition to staying cheerful, leaving aside negative thoughts, despite the problems, having relationship with trustworthy people, but above all doing what is supposed to be done at all times.
Munger never ducks a question. And when his opinion is required on a current topic, such as the case of cryptocurrencies, he is clear: “I wish they had not been invented”, while praising the decision of the Chinese government to ban this type of currencies. “Because people who invest in cryptocurrencies are not thinking about the client, but about themselves.” And if there is an attractive sector, in his opinion, in which to look at this moment, is that of renewable energies.
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