Charlie Munger

Charlie Thomas Munger was born in Omaha, Nebraska, USA. This man, who is already 90 years old this year, is Buffett's best partner in his life. He is both the vice chairman of Berkshire and the chairman of Western Science Financial. Over the past 45 years, he and Buffett have teamed up to create the best investment record in history-the book value of Berkshire's stock has created an investment myth at an average annual compound rate of return of 20.3%, and the price per share has risen from $19 to $84487.

Charlie Munger is Warren Buffett's golden partner. He is known as the "behind-the-scenes think tank" and the "last secret weapon." He has always had low visibility and high transparency in the outside world. His wisdom, value and contribution have also been seriously underestimated by the world.

Born on January 1, 1924 in Omaha, Nebraska, USA, he graduated with honors from Harvard Law School in 1948, entered the California court directly as a lawyer, and began to invest in securities and associate friends and clients to conduct business activities, some of which have been incorporated into the graduate program of the business school. After a successful buyout, Munger gradually realized the huge profit margin of acquiring high-quality companies."The difference between a well-qualified company and a company that is barely surviving is that the former easily makes decisions one after another, while the latter often encounters painful choices.¡»

Munger then began to venture into real estate investment and made his first million dollars in a project called the Autonomous Community Project. But interestingly, Berkshire does not invest in real estate.

He has served as Vice Chairman of Berkshire Hathaway since 1978.

Munger often thinks about problems outside the investment theory system. His thinking is different, which allows him to often draw some interesting conclusions.

"Remember that brokers who try to persuade you to do something are paid commissions and fees by others. Investors who are new to this business and don't know anything should start with index funds, because they are after all managed by public institutions and have fewer personal factors. An investor should master Graham's basic investment methods and have an in-depth understanding of business operations. You must establish the concept of quantifying any value and comparing the advantages and disadvantages between different value carriers, which requires very complex knowledge architecture.¡»

Munger generally agrees with the statement that markets are efficient,"and that's why it's particularly difficult to be a smart investor." But I don't think the market is completely efficient, so some of the efficiency of this part can bring huge profit margins. A staggering investment record is difficult to achieve, but it is by no means impossible, and it is not at the top of the pyramid. Only people can do it. I think that the high-end 30% to 40% of the investment management community have this potential. Academics praise diverse investment concepts, which is a harm to good investors. Berkshire style investors rarely try to diversify. Academic views will only make you feel better about your investment record being close to average.¡»

Munger believes that many times when others gradually lose their senses, the importance of becoming a rational investor is self-evident."We won't just leave $45 billion there, but you must be able to judge the madness of the high-tech stock soaring into the sky and control yourself away." You won't make any money, but you may survive the disaster.¡»

"For passive investors, different countries 'cultures have different affinity characteristics for them. Some are trustworthy, such as the U.S. market, and some are full of uncertain risks. It's difficult to quantify this affinity and trustworthiness, so many people fool themselves. This is dangerous, and it is the most important research topic for emerging markets. Munger believes that it is impossible to clearly judge such a complex issue as the direction of the exchange rate between the dollar and the euro from a lot of official economic data."Economist Herb Stein once said that if something cannot last forever, it will eventually stop."¡»

Munger believes that a deep understanding of how to become a great investor can help you become a better operator,"and vice versa." Warren runs the business in a way that doesn't take much time. I bet Buffett hasn't been involved in half of our business, but the results of this easy management method are obvious to all. Buffett is an excellent operator who never gets involved in micromanagement. He also shared his investment experience: "Many people with high IQs are bad investors because of their character flaws. I think that excellent character is more important than the brain. You must strictly control those irrational emotions. You need to be calm, self-disciplined, and be indifferent to losses and misfortunes. Similarly, you cannot be carried away by ecstasy.¡»