Home Value Investing Charles Munger – “I Didn’t Mean To Get Rich I Just Overshot”...

Charles Munger – “I Didn’t Mean To Get Rich I Just Overshot” And “Bitcoin is Total Insanity!!”

We just watched an awesome interview with Charles Munger at The University of Michigan 2017. The interview is a fantastic insight into Munger’s journey though life and his career. Two of our favorite parts are when Munger talks about the role of luck in investing, and his thoughts on Bitcoin. Both responses are so Mungeresque!

Get The Full Series in PDF

Get the entire 10-part series on Charlie Munger in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

Here’s some excerpts from the interview:

Also see Charlie Munger's favorite books

On the role of luck during his investing career…

53:12 It’s amazing how if you just get up every morning and keep plugging and have some discipline and keep learning. It’s amazing how it works out okay.

I don’t think it’s wise to have an ambition to be President of the United States or a billionaire or something like that because the odds are too much against you. Much better to aim low.

I did not intend to get rich. I wanted to get independent, I just overshot! [Laughter].

And by the way while you’re clapping, some of the overshooting was accidental. You can be very deserving and very intelligent, and very disciplined, but there’s also a factor of luck that comes into this thing.

The people that get the good, the outcomes that seem extraordinary, they’re the people who have discipline and intelligence and good virtue, plus a hell of a lot of luck! Why wouldn’t the world work like that.

So you shouldn’t give credit for the unusual. A friend of mine said about a colleague of his in his fraternity. He says. “Old George was a duck sitting on a pond and they raised the level of the pond”.

There are a lot of people that just luck into the right place and rise, and there are a lot of very eminent people who have many advantages and they’ve got one little flaw or one bit of bad luck and they’re mired in misery all their lives.

But that makes it interesting to have all this variation.


On answering questions about Bitcoin…

Get The Full Warren Buffett Series in PDF

Get the entire 10-part series on Warren Buffett in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

38:47 I think it’s perfectly asinine to even pause to think about them! [Applause].

You know it’s one thing to think that gold has some marvelous store value because man has no way of inventing more gold or getting it very easily. So it has the advantage of rarity.

Believe me, man is capable of somehow creating more Bitcoin.

They tell you they’re not going to do it but they mean they’re not gonna do it unless they want to. That’s what they mean when they say they’re not going to do it.

If they tell you their rules that they can’t do it. Don’t believe them!

When there’s enough incentive bad things will happen.

It’s bad people, crazy bubble, bad idea, luring people into the concept of easy wealth without much insider work.

That’s the last thing on Earth you should think about!

If it worked it would be bad for you cause you’d try to do it again. It’s totally insane!!

And by the way, I’ve just laid out a wonderful life lesson for you. Give a whole lot of things a wide berth. They don’t exist! You know, crooks, crazies, egomaniacs, people full of resentment, people full of self-pity, people who feel like victims. There’s a whole lot of things that aren’t gonna work for you. Figure out what they are and avoid them like the plague, and one of them is Bitcoin!!

And the worst thing would happen if you won because then you’d try to do it again. It’s total insanity!!

You can watch the entire interview here:

Previous articleA Tale Of Two (OK, Three) Fixed Income Markets
Next articleNorth Korea Said To Be Suspected In Hack Of Seoul-Based Bitcoin Exchange
The Acquirer’s Multiple® is the valuation ratio used to find attractive takeover candidates. It examines several financial statement items that other multiples like the price-to-earnings ratio do not, including debt, preferred stock, and minority interests; and interest, tax, depreciation, amortization. The Acquirer’s Multiple® is calculated as follows: Enterprise Value / Operating Earnings* It is based on the investment strategy described in the book Deep Value: Why Activist Investors and Other Contrarians Battle for Control of Losing Corporations, written by Tobias Carlisle, founder of acquirersmultiple.com. The Acquirer’s Multiple® differs from The Magic Formula® Earnings Yield because The Acquirer’s Multiple® uses operating earnings in place of EBIT. Operating earnings is constructed from the top of the income statement down, where EBIT is constructed from the bottom up. Calculating operating earnings from the top down standardizes the metric, making a comparison across companies, industries and sectors possible, and, by excluding special items–earnings that a company does not expect to recur in future years–ensures that these earnings are related only to operations. Similarly, The Acquirer’s Multiple® differs from the ordinary enterprise multiple because it uses operating earnings in place of EBITDA, which is also constructed from the bottom up. Tobias Carlisle is also the Chief Investment Officer of Carbon Beach Asset Management LLC. He's best known as the author of the well regarded Deep Value website Greenbackd, the book Deep Value: Why Activists Investors and Other Contrarians Battle for Control of Losing Corporations (2014, Wiley Finance), and Quantitative Value: A Practitioner’s Guide to Automating Intelligent Investment and Eliminating Behavioral Errors (2012, Wiley Finance). He has extensive experience in investment management, business valuation, public company corporate governance, and corporate law. Articles written for Seeking Alpha are provided by the team of analysts at acquirersmultiple.com, home of The Acquirer's Multiple Deep Value Stock Screener. All metrics use trailing twelve month or most recent quarter data. * The screener uses the CRSP/Compustat merged database “OIADP” line item defined as “Operating Income After Depreciation.”