Charlie Munger on investing and life choices to secure prosperity – Source – Yahoo Finance (05/10/2019)

ANDY SERWER: A business empire needs decisive leadership, but also a steady hand. For over 40 years, Charlie Munger has been the latter for Berkshire Hathaway. As Berkshire’s Vice Chairman, the 95-year-old Warren Buffett’s man. He’s also an investing legend own right. Munger ran a firm in the 1960s and ’70s that of over 24% per year. He’s here to talk about how to decisions and life choices that help secure prosperity . I’m Andy Serwer. Welcome to “Influencers.” And welcome to our guest, Vice Chairman of Berkshire Hathaway, Charlie Munger. Charlie, nice you.

CHARLIE MUNGER: Delighted to be here. ANDY SERWER: So you just had the annual meeting. And I have to ask your favorite moments of that were. CHARLIE MUNGER: What I like is that both the shareholders and Berkshire are so extremely enthusiastic. And it’s not just that a lot of money and have nice careers. They think they’re on side. ANDY SERWER: And, you know, they come there to hear you guys talk . And– CHARLIE MUNGER: Yeah, it’s like a cult. ANDY SERWER: It’s like a cult? CHARLIE MUNGER: Yeah. ANDY SERWER: In a good way, though? CHARLIE MUNGER: Yeah, a good cult. Yeah, it’s a good cult. ANDY SERWER: OK. I mean, and the stuff that they hear– some of , some of it’s old, and a lot of it is common sense. And you a lot about– CHARLIE MUNGER: All of it is common sense. ANDY SERWER: Right. CHARLIE MUNGER: But of course, when people use the word “common sense,” what they mean is uncommon sense. Because the standard human ignorance and stupidity. And when they say, old Joe has common sense, what they mean is he has uncommon sense. ANDY SERWER: I guess it’s a bit of a misnomer then. CHARLIE MUNGER: It really is. ANDY SERWER: So, yeah, why is it that people can’t think clearly or decisions in their lives? CHARLIE MUNGER: Well, they don’t think very well about sex or . You know, I think the standard human condition has a lot . ANDY SERWER: And there are ways to make hay of that or– CHARLIE MUNGER: Yes. You take advantage of other people. You can own life by eliminating your miscognitions. ANDY SERWER: Let me shift gears a little bit, Charlie, and ask you US economy. And what is your take on where things are right now? CHARLIE MUNGER: Well, obviously, they’re booming. But, you know, sometimes booms, and sometimes it doesn’t. And you have to life through both episodes. And our idea is we just keep swimming. And sometimes the tide is with us, and sometimes against. But we either way. ANDY SERWER: Are you surprised by how long this expansion has lasted? CHARLIE MUNGER: Of course, it’s lasted a long time. But what was is that we never printed money so much and spent it so bought back so much debt, public and private. So this is total in economics. And nobody knew for sure how it was going . ANDY SERWER: So was it risky then? CHARLIE MUNGER: Of course it was risky. But it worked. And I don’t had much else that it would work. They weren’t set up to — too much controversy. Democratic inertia is very thin. had to do something. And all they had left was just to print start buying things. And that’s what they did. And it turned out a very wise response. And what’s even more remarkable is that both Congress and the presidency and both parties made the same decision. They all cooperated. It was the last time.

For more of this transcript click; https://finance.yahoo.com/news/influe…

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