I want to write this post in memory of a great investor, remembering what he taught us.
Reading Time: 4 minutes Financial activity: Investing Knowledge level: Beginner
Summary
Who was Charlie Munger?
"The best thing a
human being can do is to help another human being know more"
What it means to be an
investor for Charlie Munger
Some videos to watch
and some books to read
Conclusions
Who was Charlie Munger?
Charles Thomas Munger
was born in Omaha (U.S.A.) on Jan. 1, 1924.
His father Alfred was a
lawyer.
In 1943 he enlisted in
the Army Air Corps and he was sent to the California Institute of Technology in
Pasadena to study meteorology.
He graduated from
Harvard Law School in 1948, and then he moved to California where he practiced real
estate law (In 1962 he founded and worked as a real estate attorney at Munger,
Tolles & Olson LLP).
Munger was better known
for his association with Warren Buffett, he ran an investment partnership of
his own from 1962 to 1975 that generated compound annual returns of 19.8%
during this period.
Munger was chairman of
Wesco Financial Corporation from 1984 through 2011; he was also chairman of the
Daily Journal Corporation and Director of Costco Wholesale Corporation.
Actually, he was vice
chairman of Berkshire Hathaway, the conglomerate controlled by Warren Buffett.
"The best thing a human being can do is to help another human being know more"
The phrase "The
best thing a human being can do is to help another human being know more"
by Charlie Munger encapsulates the essence of knowledge sharing and the power
of education. This is also the motivation that pushed me to publish this blog!
In a world where
information is constantly evolving, empowering others with knowledge becomes a
transformative act. By facilitating the growth of understanding, we not only
contribute to individual development but also foster a collective environment
of enlightenment and progress.
This philosophy underscores
the idea that the true richness of life lies in our ability to share wisdom,
inspire curiosity, and uplift one another through the gift of knowledge.
Here's to the power of
knowledge and the positive impact it can have on individuals and society.
What it means to be an investor for Charlie Munger
"If you want to be
a good investor, you have to have a long-term perspective. You have to be
willing to be very patient and wait for the right pitch. And when you get the
right pitch, you have to be ready to swing hard. You can't just take a little
teeny tiny swing. You have to swing with all your might."
"The great
investors are always very careful. They think things through. They take their
time. They're calm. They're not in a hurry. They don't get excited. They just
go after the facts, and they figure out the value. And that's what we try to
do."
"The big money is
not in the buying and the selling, but in the waiting."
I became a profitable
investor when I understood that my main virtue had to be patience (thank you,
Charlie).
Some videos to watch and some books to read
I suggest you watch this article/video made by CNBC: CNBC on Munger, and this one made by Kathy Lien: Charlie Munger’s Top 10 Lessons for Traders.
A couple of good books:
Trent Griffin: "Charlie Munger: The Complete Investor", Columbia Business School Publishing
Conclusions
Charlie Munger is a
mentor of ours.
I believe his best
quality is that he understood the human nature inherent in every investor (for
example: "You're not learning anything if you're not making mistakes").
I want to end this post
with one of his best tips: "I always laugh when people talk about how
they're going to learn how to invest. It's not a subject you learn in a few
weeks. It takes a lifetime to learn how to invest properly."
So study, be patient, and maintain your humanity and your (self-)irony over time.
A sincere wish of good
work to all!
Written by F. GRAMOLA
(*).
(*) Member of S.I.A.T.,
the Italian Society of Technical Analysis (member society of I.F.T.A. –
International Federation of Technical Analysts).
Warning
We merely cite our
personal opinions for educational purposes only.
All trademarks are the
property of their respective owners.
Investing and trading
are risky. Don't invest or trade money that you cannot afford to lose.
Initial photo by Nick - Charlie Munger, CC BY 2.0, https://commons.wikimedia.org/w/index.php?curid=75743370.
Post a Comment