(February 24, 2021) Charlie Munger answered questions for two hours at the 2021 Daily Journal Annual Meeting today. Four insights stood out from the meeting:

1. Speculation in the Stock Market

"A lot of investors are buying stocks in a frenzy, frequently on credit, because they see them going up. That's a very dangerous way to investor. Shareholders should be more sensible and now crowd into stocks and buy them just because they are going up. I think it must end badly but I don't know when." Charlie Munger

2. Value Investing during Mania

"I don't we have a bubble in Treasury securities, I just don't think they are a good investment and I have not been buying at these rates... I don't think it is crazy that good companies are trading at higher P/E ratios when we have low interest rates... All intelligent investing is value investing the way I define it, which is getting for your money than you pay. Some people look for value in strong companies and others look for it among weak companies."

3. On Learning

"People have a theory that any good hardworking person can be a great investor. I can they can be a pretty good investor and avoid certain pitfalls but they can't necessarily be a great investor... I had the right temperament for learning. And when someone gave me a good idea, I quickly adopted it and used it all my life. It is hard to teach. To some extent, you either have it or you don't... What advice would I give to someone trying to stay within their circle of competence, but who is finding it being rapidly shrunk by new technology? You fix what can be fixed and what can't be fixed you endure."

4. Rule of a Happy Life

"The first rule of a happy life is low expectations. If you have expectations that are too high you will have a miserable life. When you have reverses you need to just cope and not stew yourself into unnecessary misery... Most people are born with a "happy stat", and they wouldn't be much happier almost no matter what their outcome in life would have been."

Chapters:
0:00:00 2021 Daily Journal Annual Meeting
0:26:09 Future of Banking and Bitcoin
0:39:35 Tesla and Bitcoin Valuations
1:05:22 Tips on Handling Two Opposing Views
1:15:37 Competitive Advantages and New Moats
1:30:21 How Institutions Should Manage their Endowments
1:45:47 Secret on Living a Long and Happy Life


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