Charlie Munger's Last Interview: Thirteen Insights on Investment and Life
Retail investors only chase prices up and down. If I were the manager, I would tax short-term profits to drive these speculators out of the market.Original authors: Shuqing Bu, Jiaming Ge, Wallstreetcn
On the morning of November 28, "stock god" Warren Buffett's investment partner and assistant for the past half century, Charlie Munger, peacefully passed away in a hospital in California at the age of 99.
Shortly before his death, he made a rare appearance on the popular business podcast Acquired, discussing his investment views, experiences, and lessons.
In the episode, Munger talked about his investment journey and unique insights into many well-known companies such as Costco, Coca-Cola, Apple, BYD, Tesla, and General Motors, as well as his insights on the economies and investments in China and Japan, and his views on the future.
It is worth mentioning that Acquired was the first podcast Munger ever guest-starred on in his lifetime. Acquired is dedicated to revealing the untold stories behind tech industry giants and has consistently ranked among the top podcasts in the U.S. this year.
Here are Munger's core viewpoints:
Retail investors are just chasing prices up and down. If I were a manager, I would tax short-term profits to drive these speculators out of the market.
It is almost impossible to succeed repeatedly in VC investments. All investment projects are very popular, and investors must make decisions quickly. This means that most people are just gambling.
The outlook for China's economy over the next 20 years is better than any other major economy. China's leading companies are stronger and better, and their valuations are much cheaper. Therefore, I am naturally willing to include some Chinese risk assets in the Munger portfolio.
After holding a stock for 5 years, you may gradually integrate into it or deepen your understanding of it. However, when you realize you have an advantage, you should go all in. You must bet heavily on the best investments!
If we (Berkshire) had used a bit more leverage from the beginning, our current leverage would be three times the original, and the risk wouldn't be so great; we don't want leverage to undermine our hedging position.
This (Japan) is an obvious investment opportunity. Japan's interest rates have only been 0.5% per year for the past 10 years. These companies are indeed well-established old enterprises, and they have all these cheap copper mines and rubber bases, so you can borrow all the money you need to buy stocks 10 years in advance and pay a 5% dividend.
Some people will discover certain (investment) opportunities, but it is becoming increasingly difficult. I think the chances of buying companies like (Hershey's, Hermès) are very low, so I wouldn't even look for them. I only believe in and seek out investment opportunities that I think I might find.
I like companies that truly own brands, like Apple. Great brands should be bought at the right price; the trick is to seize the truly cheap rare opportunities to bet on.
If some company's stock is really cheap, even if it is a bad company, I would consider holding it for a while.
Wang Chuanfu is a passionate person, obsessed with making products himself, so he is closer to the front line. In other words, Wang Chuanfu is better at manufacturing than Musk.
Walmart is too attached to existing ideas, which is a problem for everyone. They just can't accept new things because the space is already occupied by old ideas.
I won't casually give advice to any young person; I will carefully consider the timing and the person, and I don't want to be a spiritual mentor. The world is full of deception and madness, and it is becoming increasingly difficult for young people.
You need to get along well with every family member; you must help them through difficult times, and they will help you. I don't think this is as difficult as it seems. I believe that half of marriages in America are very successful.
