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Charlie Munger BBC Interview During the Financial Crisis – If You Can’t Stomach 50% Declines in Your Investment You Will Get the Mediocre Returns You Deserve

August 10, 2012 | About:
CanadianValue

CanadianValue

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Charlie Munger at his best, doing some straight shooting when answered questions dealing with the financial panic and stock market crash of 2008/2009:



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CanadianValue
http://valueinvestorcanada.blogspot.com/

Rating: 4.9/5 (17 votes)

Comments

BEL-AIR
BEL-AIR - 1 year ago
Munger lost 50% in the bear market in the early 1970's, and he was so down and mentally disturbed and terrified by the whole event he closed down his fund the next year....

So even for the very best it is easier said then done....

So it seems even Munger himself could not stomache such declines...
BEL-AIR
BEL-AIR - 1 year ago
Munger can talk smart..

This is not what he did in the crash of 1974...

Read it here...

THE WARREN BUFFETT STOCK PORTFOLIO

By Mary Buffett..


Page 8

http://books.google.ca/books?id=7mFmyrfSEQUC&printsec=frontcover&dq=THE+WARREN+BUFFETT+STOCK+PORTFOLIO&source=bl&ots=ZhbitfSgI2&sig=O4w9mTKaCBPzUkdm5-hOj1QnVco&hl=en&sa=X&ei=KQImUOK7BcGNyAG2oIHoCQ&ved=0CDsQ6AEwAA#v=onepage&q=THE%20WARREN%20BUFFETT%20STOCK%20PORTFOLIO&f=true
lajunglita
Lajunglita - 1 year ago
Could it be possible that he is an individual who learns from experience ?
achitpatel
Achitpatel - 1 year ago
I think it's important to remember that Mr. Munger closed his "Partnership" in 1975 after rising 73.2% that year, and his overall record in the 14 years he ran the partnership was 19.8% annually(13.7% net of fees) vs. 5.0% for the Dow. This data is from page 20-21 of Poor Charlies Almanack.

My feeling is he closed the partnership because he probably got frustrated dealing with the panicked phone calls of his investors during the 1972-1974 period when his partnership lost 31.5% and 31.9% in back to back years. He probably figured 1975 was a good time to part company with the partnership and handle investing himself. Without carrying people, and there emotions, with him.

AlbertaSunwapta
AlbertaSunwapta - 1 year ago
^ likely so.



Warren Buffett--In 1974


http://www.forbes.com/2008/04/30/warren-buffett-profile-invest-oped-cx_hs_0430buffett.html

"Buffett is like the legendary guy who sold his stocks in 1928 and went fishing until 1933. That guy probably didn't exist. The stock market is habit-forming: You can always persuade yourself that there are bargains around. Even in 1929. Or in 1970. But Buffett did kick the habit. He did "go fishing" from 1969 to 1974. If he had stuck around, he concedes, he would have had mediocre results."

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