The quality of memory is also a part of an investor’s circle of competence.
Category: Charlie Munger
Permanent capital loss is the biggest risk investors must face
Howard Marks: “I don’t think most investors worry about volatility. In fact, I’ve never heard anyone say, ‘The expected return isn’t high enough to withstand all the volatility.’ They worry about It’s the possibility of permanent capital loss.”
Are you honest as an investor?
Being honest with yourself is the first step to successful investing. People who cannot be honest with themselves can only live a mediocre life (which is not a bad thing), but they will never achieve anything that satisfies them.
The Charlie Munger Way-Key points from Munger Daily Journal’s 10 years of shareholder meetings
I spent several days and finished my reading of book The Charlie Munger Way, it’s a collection of all the transcripts of the Q&A of Munger Daily Journal (ticker: DJCO)’s sessions at shareholder meetings during his 10 years (2014-2023) Summarized my personal thoughts and ideas in the article you are reading now.
In the crowd, it’s impossible to think independently or keep sane
The crowd, groups of people, when clustered together, have a collective unconsciousness
Statistics can be deceiving
The most serious and most capable of changing statistical results is preconceived ideas “Shoot before set target”────because statistics and market surveys belong to more fields of non-science, and the mathematics and statistics involved in the middle are just tools . It is people who report and interpret in the end; as long as there are people, there will be prejudice.
The crowd tend to lose their judgment and get lost
People get lost in market: Seeing is believing NOT exist in market, Markets are not rational, Academic hypothesis not refect the fact.
Complicated math is not a prerequisite in stock investing
Most people has a myth, complicated math play a key role to invest successful. Peter Lynch said “All the math you need in the stock market you get in the fourth grade.”
Charlie Munger, a great investor worth remembering
Buffett said: “Because Munger… made me go from an orangutan to a human being, if I didn’t know him, I would be much poorer than I am now!” Buffett said in a statement on Charlie Munger’s death: “Without Charlie’s inspiration, wisdom and Without participation, Berkshire would not be where it is today.”
Investing is a game of chance
There is a 60% chance of stock investing success in the long run