I found an interesting video of an interview with Charlie Munger on BBC late last year. He talks about several different topics. The topics include the future of Berkshire Hathaway, his opinion on Alan Greenspan and the ideology that lead to the current financial crisis.
Below are the full list of topics Charlie Munger discusses in the interview.
Berkshire Hathaway Stock Decline
He was asked if he was concerned about the decline in Berkshire Hathaway’s stock price. He responded that the decline does not concern him at all, and it is natural to happen in long term investing and investor must be prepared for this.
Munger states that America had an ideology that went too far in the free market ideology. He states that there needs to be restraint in markets. He blames both parties for having extremists, and states that when the center rules that is the best for the country. Munger likens the US economy during the bubble to someone on heroin.
Munger admires Greenspan for taking the blame for what he did to the economy.
Wall Street Culture
Munger believes that Wall Street has a “locker room culture” that feels they must always win.
Munger states that he looks for businesses with a durable advantage and a management with “integrity and talent”. In addition the price must make sense to provide a margin of safety. He states the reason his ideas are not widespread is that they are “too simple”.
On Coca Cola
Munger states that when Coke was bought it was succeeding well and was cheap. He thinks the stock was too cheaply priced. Munger states that a third of the volume trading for months was by Berkshire’s buying.
On Future of Berkshire Hathaway
Munger sometimes only speaks to Buffett once a week. He sees a bright future for Berkshire even after him and Warren Buffett are gone. He thinks that since his successors will start in a great position that will be able to help them.
Below is the video: