Charlie Munger's Talk at Daily Journal Annual Meeting 2017 ~ market folly

Thursday, February 16, 2017

Charlie Munger's Talk at Daily Journal Annual Meeting 2017

Charlie Munger just held the annual meeting at the Daily Journal and shared his thoughts on a wide range of topics.  It's a rare chance to hear from one of the investment world's great minds.

Here's a few quick takeaways and quotes followed by the full video below:

- He owns a chunk of Berkshire Hathaway (BRK.A/B) stock, a chunk of Costco (COST) stock, and then has money allocated to Li Lu's fund.  He feels diversification is basically for the 'know nothing' investor.

- On why Berkshire bought airline stocks and Apple: "I don't think we've gone crazy.  I think the answer is we're adapting to a business that's gotten much more difficult." Consolidation in airlines has finally happened similar to what happened in railroads

- Munger recommended the book A Man For All Markets about Ed Thorp.  For other books he likes, be sure to check out out Charlie Munger's recommended reading list.

- "The success of Berkshire came from making two decisions a year over 50 years." 

- "You don't want to believe in luck, you want to believe in odds."

 - Regarding American Express (AXP): "If you think you know what's going to happen to payment systems 10 years out, you're probably under some state of delusion."

- On Wells Fargo (WFC): "(It) had a glitch... I don't think anything is fundamentally wrong."

- They bought Exxon Mobil (XOM) as basically a cash substitute 

 - Lots of opportunity still in China; strong and selling at cheap prices.  Problem is they gamble a lot and believe in luck, but they're formidable workers.

- On India: "India is grossly defective because they took the worst aspects of our culture, allowing a bunch of idiots to scream and stop everything.  They've taken the worst aspects of democracy."  Says the country is still battling corruption.

- "One thing about doing something dumb is that you're unlikely to do it again."

Embedded below is the video of Charlie Munger's talk at the Daily Journal annual meeting 2017:

For more on him, check out the book Charlie Munger: The Complete Investor as well as notes from the previous Charlie Munger Daily Journal meetings.

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