Warren Buffett says that Charlie Munger's most important contribution is the design of Berkshire Hathaway today. The plan Charlie Munger gave to Warren Buffett was simple: Forget about buying good businesses at a fair price, instead, buy great businesses at a fair price. Warren Buffett himself said that his role was to faithfully follow that plan. Even Warren Buffett, who received teachings from Charlie Munger, had the following as the first principle of his investment philosophy: Hello, it's all the books in the world. The book to review this time is Charlie Munger's Words written by David Clark, with the subtitle On Investing, Economics, Business, and Life. The great investor Charlie Munger passed away at the age of 99 on November 28th. He was one of the investors I admired the most, and it is even more regrettable as he recently uploaded related videos frequently. It is regrettable that we cannot practice Charlie Munger's investment philosophy.

I am trying to soothe your mind. In this session, we will explore Charlie Munger's investment philosophy and principles of life. The content of this session is very important for becoming a happy wealthy person by making money through stocks. Please watch until the end and gain valuable information. Now, let's take a look at the content of the book. Firstly, how not to be a fool. People try not to become stupid rather than becoming smarter. However, it is harder than people think. Charlie's investment philosophy is based on the theory that the stock market often overlooks a company's long-term value and deals with it from a short-sighted perspective, leading to undervalued stocks. When Charlie discovers undervalued stocks, he buys them and holds them for a long time, waiting for the economic conditions underlying the business to raise the stock price. Charlie believes that the only thing an investor should be wary of is not doing foolish things.

When you make a stupid mistake, it's usually committing the sin of laziness. For example, not taking action even when you find a good investment opportunity, or buying too few shares of a stock when the opportunity is clear. However, it's actually harder than you think not to do so. By investing and holding onto it for a long time, you can avoid paying fees and hearing the broker's nonsense less. Also, when the investment goes well, you may also benefit from tax advantages of 1, 2, or 3% annually. Charlie believes that it's better to buy a good business based on economic conditions and hold onto it for a long time rather than predicting market trends through countless buy and sell transactions. If you buy and sell without substance, you will have to keep paying taxes. If you hold onto a stock for 10 years, you only need to pay taxes once, and Charlie says that this has the effect of seeing a tax benefit of roughly 1 to 3% annually. Charlie believes that time is a good friend to businesses with a great capital environment.

Highly probable and ordinary businesses often have a high likelihood of being cursed by time. Recognizing the dawn of wisdom is admitting that you do not know everything. The more wise you become, the more you realize that you do not know much. Admitting ignorance allows you to learn more. When you acknowledge your ignorance, the dawn of wisdom shines. According to Charlie, there is a range of abilities, consisting of companies that one can understand and evaluate. This also includes excluding businesses that one does not know. By admitting ignorance, you can either refrain from investing or increase understanding to a level where value assessment is possible. The latter leads the business into the realm of capabilities. Charlie's path to wisdom involved acknowledging ignorance and making efforts to change it. Finding mismarked bets is investing.

You must have it. That is value investing. When the stock price is out of line with future value, the stock is simply mispriced gambling. If the stock price is higher than the value, it is an overvaluation of the company's rosy prospects. Conversely, if the stock price is lower than the value, it means that the stock is undervaluing the company's long-term prospects. When the stock price starts to fall, the stock is priced lower than the company's long-term prospects. At this point, the probability of winning is high, so you should buy stocks. Why does this happen? It's because of the short-sighted nature of institutional investors leading the market. They are interested in where the stock price will go in the next six months. In contrast, Charlie is interested in which direction a company's underlying business conditions will go over the next ten years. The mispriced gambling, or buying opportunity, arises precisely from this difference. Diversified investment is the key to today's diversified investment.

I think diversified investment is a crazy thing. Diversified investment is a means to prevent financial consultants and securities brokers from producing poor performance, but on the contrary, it prevents them from achieving excellent results. When you make a wide range of diversified investments, such as 50 or more, losses offset profits, and similarly, profits offset losses. Diversified investment basically mimics the market or index funds. Consultants who recommend diversified investments neither hit the jackpot nor take a big hit. They just play it safe. Charlie found out that by investing in good companies at a reasonable price, reducing the number of holdings to less than ten, he could still be protected from unexpected business failures and achieve steady profits over 10 to 20 years. As someone said, if you diversify too much, it becomes a zoo. If there are ten eggs in a basket, the eggs will.

It is much easier to watch carefully. Remember that good investment ideas are rare moments of big bets. If the probability of winning is really high, bet big. Even if there is a very good investment opportunity, most investors only invest a small amount. So, you cannot make big money. Then when is the opportunity? Charlie buys as much as possible when the stock price plummets due to some macroeconomic event. Remember, in Charlie's world, investing in companies with long-term growth potential opens up even greater opportunities as the stock price falls. Charlie is saying to bet big at that time. Foreknowledge I have never accurately predicted something. I do not make money from accurate predictions. I just enter good businesses and stay there. Charlie does not predict the weather, election results, economy, stock market, especially the future of the stock market well.

Charlie dismissed the chatter in economic magazines predicting what would happen in the stock market as nonsense. He was simply looking for opportunities to buy good businesses at good prices. However, he foresaw one thing: in the stock market, there are times of exuberance and rapid price increases that are difficult to resist, usually followed by severe corrections and brutal price collapses. So, can he accurately predict when these moments will occur? No, he cannot. But knowing that such events will happen, all he needs to do is have patience and wait. According to him, the key to success lies in patience. Patience means being able to focus on something for a long time. For investors, patience is a virtue and an asset. Most people think that patience is simply waiting for the value of their investments to rise steadily in some investment destinations. In Charlie's view, patience is like cash.

It includes patiently waiting for the stock price of a great company to drop after accumulating it. Here, it also involves maintaining focus until finding a great company that sells at the right price. The focus maintenance technique needed to become a lawyer or a doctor is also required to become a great investor. In this book, Charlie Munger consistently talks about the importance of cash. Accumulating cash and waiting also require great patience. Waiting, waiting helps investors in words, but many cannot endure waiting. The 17th-century French mathematician Blaise Pascal said that all of humanity's problems stem from the fact that people cannot sit quietly alone in a room. Charlie agrees. A great company with a solid moat should wait for it to be sold at a good price. And good waiting, as Charlie says, means talking about a month or two.

No, it may take several years for a good investment. Warren Buffett waited five years after leaving the stock market in the late 1960s before regaining interest in buying stocks. In the late 1990s, during the internet bubble era, Charlie and Waller gave up looking for stocks to buy in the stock market. It wasn't until 2003 that they started looking. However, waiting is not easy for most investors. This also applies to mutual fund and hedge fund managers. They are chasing quarterly performance, so they don't have the option of searching for good stocks and waiting for years. Besides finding investment targets, there are other things to do. After buying stocks, you have to wait for the company's business model to grow and the stock price to rise. When Charlie and Warren said they would hold onto their investment indefinitely, they meant it.

It was sincere. Who in the world of finance could make such a declaration? This is why Charlie and Warren are not worried at all that someone will follow their investment style. It is because there is no other individual or period with the patience they have. Honestly, I feel like I am not good at this either. It was really difficult to hold onto cash. I had a habit of buying any stock if I had cash, but I think this is a habit that really needs to be fixed. Enduring a problem that lasts for 10 years is much easier than an endless sea of misfortunes. What Charlie is dealing with here is the difference between a great company and an ordinary company. A great company is one that has faced major problems over 20 years, while an ordinary company is one that encounters multiple problems every year. The perfect example of a great company is Coca-Cola for the past 50 years.

Coca-Cola는 두 번의 실수를 저질렀습니다. 한 번은 영화 산업에 뛰어든 것이고, 다른 한 번은 대표 상품을 새롭게 만들어 '뉴 코크'로 출시한 것입니다. 이 문제들은 사업을 접는 것으로 해결했습니다. 끊임없이 문제를 겪는 평범한 회사의 완벽한 사례에는 모든 항공사가 포함됩니다. 항공사는 노조 문제, 연료 가격 문제는 물론 극심한 가격 경쟁을 이겨내야 합니다. 이 지혜는 개인의 삶에도 적용할 수 있습니다. 극심한 고통을 잠깐 참는 것이 실세 없는 고통을 겪는 것보다 훨씬 쉽다. 뜻밖의 일, 뜻밖의 좋은 일은 쉽게 대처할 수 있다. 문제는 뜻밖의 나쁜 일이

As the value of the company decreases, the safety margin also decreases. If you buy high-value companies at the right price, it will protect investors from long-term losses and bring unexpectedly good things as the business grows internally or grows by acquiring other businesses. Only invest when the odds are in your favor. You need to understand a little about Charlie's past to understand this advice. In the late 1960s, both Charlie and Warren were running their hedge funds. As the bull market continued in the late 1960s, everything became too expensive, and Warren, who had followed Graham's methodology until then, was looking for cheap stocks to buy.

It has become difficult to find, so instead of changing the investment strategy, he closed his personal redemption fund and returned the investment funds to the partners, then converted most of his own money into cash-like assets such as U.S. Treasuries. On the other hand, Charlie continued to invest and made significant profits until the stock market crash of 1973 and 1974, causing the partners to lose nearly half of their investment before 1973. Charlie considers this period to be the worst moment of his life. In contrast, Walle, who had been sitting on cash, saw the stock market crash as many excellent companies came out at bargain prices. With enough cash on hand, Walle was able to buy those companies at cheap prices. Charlie, on the other hand, could not do so because he had no cash. As the stock market recovered, Charlie and his partners recovered their losses, but the experience was a huge shock to Charlie.

Charlie will stop fund management in the future. What did he learn from this experience? As the price of stocks goes up, it becomes disadvantageous for investors. Conversely, as the price falls, it is more advantageous for investors. He also learned that when the stock market rises, if you continue to invest, when the market crashes, there will be no cash to invest in assets. The probability of winning is not important because if you don't have cash to bet, you won't make any money. Here, the importance of cash is also emphasized. It is also said that the stock market is overheated. If you buy only a few excellent undervalued companies, you should consider selling when the price reaches the intrinsic value. This is a very difficult thing to do. However, if you buy shares of a few great companies, just like that.

Sitting down and waiting is all you have to do. That's a good thing. Benjamin Graham's method of buying undervalued stocks involves evaluating the company's value and selling the stock when it reaches that value. This method is not desirable because it suggests selling even stocks of excellent companies with long-lasting competitive advantages when they reach a predetermined fair price. By selling stocks, you lose the opportunity to benefit from the intrinsic value increase of the company over time. According to Charlie and Munger's theory, companies with a sustainable competitive advantage have a solid business foundation that allows their intrinsic value to expand as time goes by. The longer the time passes, the more the company's value grows. Therefore, the wisest choice is to hold onto the stock for as long as possible after purchasing it. The longer you hold the company's stock, the more its value grows, and as the company's value grows, investors benefit more.

Becoming wealthy and Berkshire Hathaway proves the way. Looking back over the past 50 years, Berkshire stocks were traded at prices lower than book value in the early 1970s, but by the late 1990s, they were traded at nearly twice the book value. If you had bought Berkshire's stocks cheaper than the book value and sold them at twice the price, you would have made a lot of money. However, between 2002 and 2016, watching Berkshire's performance, which tripled its value, you would have sighed. If you choose the right company, like Charlie Munger, sitting tight is the answer. There will be opportunities to invest in excellent businesses run by great managers from time to time. Of course, the day you taste paradise will come. I believe it is a big mistake not to buy stocks of companies with huge potential when the opportunity arises. The important point here is:

When the opportunity comes, you should aggressively buy. The problem is, in order to do so, you usually need to buy in a declining market, which is very difficult for most people. When they see other investors losing money, they get scared and lose confidence in investing. Even though the opportunity is right in front of them, it's too frightening to invest. Also, you may not have cash available to buy in a good buying opportunity. Most funds use all their investment capital for investments. If you don't invest all your money in a rising market, the cash holding will drag down the profits, and as a result, clients may leave the fund. Therefore, in a declining market, fund managers get scared and even if they want to buy certain stocks, they don't have the cash to invest. Everyone is on the same sinking ship, so compared to other groups, the fund manager doesn't look worse. Charlie and Warren are really sinking.

It will not happen, but rather know that it is a buying opportunity. Financial dementia, more than sex, occurs in finance. Today, financial crises are almost completely resolved after 1 to 2 years. This is probably because the investment industry focuses on the future rather than lamenting the past, trying to make money. Therefore, most financial periods repeat foolish acts done in the past. Charlie understands this and is holding a large amount of cash at the end of the bull market to seize the buying opportunity brought by the bear market. He waits for the stock price to drop for several years without predicting when the price will collapse. As the stock price rises, he stops buying stocks, which means that Berkshire's cash accumulation is beginning. He prepares for a large buying opportunity that will occur when the bubble bursts, giving up profits at the last stage of the bull market. He prepares for a large-scale investment.

Funds cannot do this way. It's because customers leave when giving up profits in the latter part of a bull market. I remember at the Berkshire Hathaway shareholders' meeting in 1988, shareholders took turns asking Charlie and Warren why Berkshire wasn't investing, and the two repeatedly answered that the stock price was too high. In 2000, when the stock market bubble burst and everyone was looking for a place to hide, Berkshire was in a position to make large purchases. And in 2008, they did exactly the same thing. How can you tell when the stock market is overheated? It's when Charlie and Warren start talking about investments. It's not easy to go against human nature and patiently wait for difficult investment opportunities. We know it's not easy because we have a lot to do all day, so just waiting is easy. But being ordinary.

Can a person sit still and do nothing for five years without feeling like it's an activity or feeling useful like a productive person, so they end up doing something foolish? Most investors are impatient, so they often fail right after starting their investments. Stocks are almost always sold at a much higher price than their long-term intrinsic value, that's the nature of the stock market. When you decide to invest your capital, there's almost no chance you'll find an investment that meets the criteria on the day you decide to invest, so you'll settle for something less satisfactory. It's like Charlie says, making money by waiting is not an easy task, it goes against human nature, but you must understand that this is a winning investment strategy. One of the best investment strategies is to buy when others are selling.

It is a contrarian investment to buy, and not to hurry is to act contrary to almost everyone in the world. You should think like this. Charlie is not looking for investment opportunities, but waiting for the right long-term investment opportunities to appear at the right price. He keeps his eyes wide open to recognize opportunities, and that's why he reads a lot of books. If good opportunities do not arise, he continues to read books. Is that a difficult thing to do? Imagine being told by an investment manager that it may take five years to find the right investment destination. Most people would get up and look for another investment manager. The advantage Charlie has over ordinary investors is simply patience. Most people cannot wait for five years for a good long-term investment destination like Charlie Munger, and in most cases, stocks are not worth more than their intrinsic value.

Because stocks are usually sold at higher prices, investors often pay excessive costs when buying stocks. Here I will ask a question. Do you belong to the 99% of investors who act hastily and pay excessive costs for investment products, or do you belong to the 1% club of Kali who has the patience to wait for 5 years for the right long-term investment opportunity at the appropriate price? There is no cure-all for success. You really need to know a lot about business, human nature, and numbers. It is irrational to expect that any one magical formula will solve everything. People hope to learn how to become rich with just one book. However, even with good luck, that won't happen. Reading the biography of a great entrepreneur a hundred times will be much more helpful than reading a hundred investment-related books. Why is that?

When you read the history of models, you can learn when and how a business went through difficult times and how they overcame them. You can also learn what aspects made various businesses great and what did not. This knowledge can help you identify which businesses have potential competitive advantages. It is the key to excellent long-term investments. Just reading books about business may not be enough. Studying accounting for about two semesters, which can be called the language of business, can be helpful. Along with studying economics for about two semesters, taking a good class where you can learn about central banks is necessary to understand the power of the Federal Reserve in market interventions. By studying these things, you will be in a good position to find attractive investment opportunities. However, to find good stocks, you need to read a lot. Around 200 to 300 books a year.

When reading a company's annual report of a certain level, you should look at Wall Street calls. Now you will understand why most people look for simple and easy ways. Interestingly, people who seek easy ways often act foolishly in the stock market. And those who see through that, like Charlie Munger, profit from them. As Warren Buffett said a long time ago, if you can't tell who the sucker is at the poker table, it's you. This is also a very important point. Now, onto the last part of the investment chapter. It is the nature of the stock market for stock prices to fall below the average in 18. In a bear market, people suffer, and the answer lies in conservative investing and steady savings rather than hoping for miracles. Some here will find a way to earn returns twice as high as the average, but not everyone can be taught that method. It's too difficult. It's hard to outperform the stock market average.

However, it is not impossible. But it takes a lot of reading to get there. For most people, saving money and investing in an index fund in a bear market and holding onto it is the simplest, easiest, and safest investment. Those who invest in index funds can sell it as needed after retirement. However, for those who invest time and energy in studying to gain investment knowledge, the stock market is an endless sea of ​​opportunities that can build a huge fire beyond imagination. These first two parts are about the economy, and the third part is about business, which also contains a lot of great content. However, due to time constraints, we will skip this part for this session. For those who are interested, please make sure to review this part as well. Now, onto the third part. 19 Career Three rules of a career: 1. Do not sell what you will not buy. 2. Do not work under people you do not respect or admire. 3. Only work with people you like.

Advice on working on a career is like a gift. Why shouldn't you sell something you wouldn't buy yourself? Any book written about selling something says that if you don't like, understand, or believe in a product, selling it will be a disaster. Great salespeople believe in their products. That's one of the keys to success. Why shouldn't you work with someone you don't respect? Because they have nothing to teach you and won't help you grow intellectually and in life. Why shouldn't you work with someone you don't like? Work is life, and one of the joys of a rich life is liking what you do and enjoying the company of the people you spend time with. If you feel miserable working at a workplace, no matter how much money you make, it's a pitiful life. Specialization in one's 20s. Extreme specialization is the path to success. For most people, focusing on specialization is much more important than trying to understand everything.

Specialization is the key to survival for all species and the key to all business success. Specialization protects us from competition because it can create entry barriers. The more difficult it is to specialize, the higher the entry barriers will be. If you do what everyone else does, you have to compete with everyone else. However, by cultivating and strengthening expertise, you can stand out and differentiate yourself. Would you entrust a Porsche to a cheap local repair shop? No, you would entrust it to a garage that specializes in handling Porsches. A Porsche specialty shop charges twice as much as a regular repair shop, justified by their expertise. This principle applies equally to fields like medicine, law, plumbing, and carpentry. Those who earn big money are specialists. The rest are not. At 21, I learned something about retirement. If you constantly think and read, you don't have to work. Are you tired of a futureless Wall Street job? Is your boss giving you a hard time? Then,

Keep thinking and keep reading books, then it will be fine. According to Charlie, that is the essence of the investment game. You need to think a lot and read a lot. Charlie reportedly reads about 600 pages a day. This includes reading newspapers daily and several books in a typical week. Of course, he sometimes goes to the Los Angeles Country Club to enjoy club sandwiches and cola. Charlie is someone who knows how to enjoy leisure while reading books diligently. Most successful investors and successful people seem to keep books close. It would be great if you could also get closer to our channel and books. At the age of 22, a luxurious life is not necessarily a good life. It does not mean that his achievements have diminished. Mozart's musical talent may have been the best in history, but he was quite miserable from the beginning. He spent more time in disinfecting than in

Living while consuming makes people miserable. One of Charlie's secrets to accumulating wealth is that he saved with all his might in his youth. Charlie bought a new car for the first time when he turned 60, even after becoming a multi-millionaire, he moved to a luxury home much later. Every penny saved becomes investment capital. Overspending can make us miserable, but if we spend less and invest wisely, we will be able to drive in the fast lane. The secret of success is not having succeeded greatly in an area of no interest. Even if you are quite intelligent, it will be difficult to succeed greatly if you cannot find something you are deeply interested in. Charlie often says that the core of a great entrepreneur is passion for their business. For those with such passion, their business is not just work, it's a lifelong love. They prefer to be at their workplace rather than at home.

I want them to be passionate about their work and define their lives as artists. Here, Charlie is saying that this theory applies to everything we do. To succeed in something, you must have a passion for it. Passion is more decisive for success than intellectual ability. As Steve Jobs said, work will fill much of your life. Therefore, the only way to truly live a satisfying life is to do what you consider great, and the only way to do great things is to love what you do. The study bug, Wolhen, is one of the best study bugs on Earth. Wolhen's investment skills have noticeably improved since he turned 65. After reviewing Wolhen and all the investment processes, it can be clearly said that if he had not settled for what he already knew, his investment improved after he turned 65. The fastest time to think it's really late is when you think it's too late.

It seems that after turning 65, they have become much better investors, meaning there is hope for almost everyone regardless of age. Especially in the investment market, it is very helpful to continue studying even after retirement. I have noticed another characteristic that truly excellent people with skills or professions have. Most of them, unlike others, continue to study and improve themselves long after retirement. They keep swimming like sharks in the sea. Learning is an obligation that all investors must consistently fulfill. Some smart learning machines are not always diligent, but I have often seen lazy people succeed. However, these people are learning machines. When they go to bed, they become a little wiser than they were in the morning. This is a long way for a person.

It is very important to constantly learn and continuously improve oneself. Think of accumulating intelligence. The more effort you put in, the richer your intellect will become. One unique aspect of investing is that the older you get and the more you learn, the better investor you become. The field of investment is unique. The physical qualities required for investors are clear eyesight, a sharp mind, and the ability to turn the pages of a book. This is why Charlie, even at the age of 92, can overwhelm young people as an excellent investor. Finally, the last of the 26 lost opportunities, I think the best attitude towards life is that of Epictetus. Epictetus believed that every missed opportunity in life is an opportunity to act rightly, an opportunity to learn something, and the duty of those who miss opportunities is not to drown in self-pity but to face the terrible shock in a constructive way.

I thought it was a very good idea to use Epictetus as a philosophy of life, and he teaches that all external events are determined by fate and we cannot do anything about it. However, individuals are responsible for their own actions. In terms of investment, something similar to Epictetus' fate is macro and micro events that affect individual companies, and the resulting fluctuations in stock prices. It is the responsibility of investors to react to such events and learn from them. Charlie gained a lot of learning from every loss in his investment life. If Charlie had never experienced problems in highly competitive industries such as textiles, apparel retailing, and aviation, he would not have insight into owning a company with consumer monopoly positions like Coca-Cola or See's Candy. Also, he would not have known the comparative advantage of low-cost production like Geico.

If we had not experienced the stock market crash of 1974 in 1973, we would not have gained insight until we bought Wells Fargo stocks in 2008 and 2009. Thomas Edison said that failure is the mother of success. Although Charlie did not experience as many failures as Edison, he can also say that the experience of failure was the origin of success. Now, I am about to finish reviewing Charlie's words. In my opinion, the words mentioned here contain important points to keep in mind not only for investing but also for when investing. For those interested in stock investing, I strongly recommend reading this book once. Since this video contains essential content, I believe that watching it repeatedly and digesting it as your own will be very helpful for stock investing. I am deeply saddened by the passing of Charlie Munger.

I have been asked to review your book. Whenever there is an opportunity, I will review your book. If you found this video helpful or are looking forward to the next one, please like, subscribe, and turn on notifications. The content of the book is great, and the content of this video is very helpful for investment, so I would appreciate it if you could introduce it to everyone. Thank you for watching for a long time, and I will definitely come back with another great video next time. Thank you.

찰리 멍거 투자대가가 말하는 주식투자 성공을 위해 가장 중요한 18가지요소 주식|투자|재테크|주식 강의 공부 책 추천 @세상의 모든 책들

책의 내용을 기반으로 하여 주식, 투자, 재테크, 자기계발 관련 내용의 영상을 제공하고 있습니다.
비즈니스 문의 : batman0@naver.com
