Berkshire Hathaway’s vice president Charlie Munger is one of the greatest investor ever born on this planet. He has acquired great wisdom from various great people and shared it further to young people like us in various books, interviews and speeches.
Q1 hedge fund letters, conference, scoops etc, Also read Lear Capital: Financial Products You Should Avoid?
In a rare interview with Harvard Business School that was published online earlier this month, (it has since been taken down) value investor Seth Klarman spoke at length about his investment process, philosophy and the changes value investors have had to overcome during the past decade. Klarman’s hedge fund, the Boston-based Baupost has one of Read More
Charlie Munger's Top 5 Principles For Investing And Life
Your guys what is up. Welcome to wisdom in Lychner today. I'm going to tell you about John Mungo's dog fight principles for investing. Anyhow if you don't know Johnny Mongeau is and don't know about his principles on investing then you are missing a huge opportunity for success in investing and life as a whole. Johnny Mango is Berkshire Hathaway's vice chairman and plays an equal part with Warren Buffet in building such a huge empire. Since many people know Warren Buffet but very few know about Charlie Munger. So let's begin first his long term approach and patience. John Lehman going west for the long one and does not believe in Schokman speculation since he invests in the long run. He has a lot of patience in finding the businesses that will be there and producing profits for the next 30 40 years. Second is circle of competence. Johnny invests only in businesses which comes in this circle of competence on in other words which he and Warren Buffet can and is dead. So China has three baskets. Yes. And do what. Whenever he acknowledges a business and if he finds it difficult to understand he puts it into the too hard basket. When the business is out of his circle of competence then the business goes through the new Bosket. And when the businesses within his circle of competence. Only then it costs in the yes basket and the West's child usually sees that it doesn't matter how much off the young of circle of competence you have. But what really matters is that you should know where it ends.
Third is bipolar nature of Mr. Market. Both Charmion Wharton sees Mr. Market as a person who has a bubble of nature. Sometimes the Mr. Market will come to you with the prize very much low compared to the book when you add the times with a very high price compared to when you saw your emotions should not be true. With the price of Mr. Market the only thing you should know is how can you take that Wantage off it's about human nature and you should be knowing when to buy more shares and when to sell more shares to Mr. Market. Forte's don't envy. This is not regulated investing but pays a huge toll on your say kludgy venue envy somebody for any reason. Say they made huge gains in this past month and you haven't made any so entombing him will only worsen the things for you because now you'll start speculating on stocks rather than seeing them as a part of a business and investing for the long run which can lead to huge losses. Fifty's multidisciplinary approach if you can take this principle from this review and put it in action in your life then the purpose of this review will be fulfilled. Believe me guys. This principle is life changing and will change your life forever. Now let me explain it to you as we all know that this world is a complex mechanism and Jollys is that the problem in the old ways cannot always be solved by one discipline. See economics. So if you really want to achieve peak in your life you have to understand various disciplines such as psychology economics account physics engineering and so on.
JAHRLING usually uses a metaphor to explain this principle to a man with the hammer everything in this world looks like a nail. And we don't have to be like that man to whom everything looks the same. So we should have different options for different problems. So guys if a vice president like Sir Charlie Munger who has 94 years of experience gives you this advice I guess you should take it and they immediately start practicing these principles and in the life so guys i hope you find this really helpful and if you do then don't leave the like button and subscribe to this channel for more such reviews.