Charlie Munger Interesting Advices

Charlie Munger, Vice Chairman of Berkshire Hathaway had an interview with CNBC Becky Quick. Here are a few quotes which I think are interesting:-

On Question whether the golden era of investing is over
"Now is tougher. …… The valuations have come up. And the competition sorting through those opportunities is more intelligent and more aggressive and more numerous. Of course it's harder."

On Munger's generation of investors
"The opportunities that we all remember came from a demoralized period when about 90% of the natural stock buyers got very discouraged with stocks. That's what created the opportunity for these fabulous records that my generation had. And that was a rare opportunity that came to a rare group of people of whom I was one. And Warren was another."

On US politics and government
"Sometimes the Democrats are in, sometimes the Republicans. In my lifetime, the country run better, net, because we had two parties, each of which was partly in control. If either party had been totally in control of all branches of the government, I think we would be way worse off today."

On US national debt which has reached US$22 Trillion
"Yeah, we're in new territory...… Well, I don't worry much, because every era is a cinch that a great nation will, in due time, be ruined. So I -- time and -- whether it's Rome, where is Britain in its heyday, they all pass. And so our turn is bound to come someday. But I don't like thinking about it too much. It's like my own death. Why should I enjoy thinking about it? But is it coming some day? Sure. Of course it is."

Worries on Nuclear Bombs
"Its a nuclear war. A nuclear war would be a real, real disaster. Global warming is something we could cope with if we had to. But a nuclear war is - that's - that is really serious."

Anything that rises to Munger radar screen now that may be under the radar for other people
"Well, nobody knows how much of this money printing we can do..... That we can ignore the whole subject and just print money as convenient. Well, that's the way the Roman Empire behaved, then it was ruined. And that's the way the Weimar Republic was ruined. And - it's - there is a point where it's dangerous. You know, and of course, my attitude when something is big and dangerous is to stay a long way away from it......"

A display in Dachau Concentration Camp showing the effect of printing money in Germany

On what are the secret to life is, to a long and happy life
"You don't have a lot of envy, you don't have a lot of resentment, you don't overspend your income, you stay cheerful in spite of your troubles. You deal with reliable people and you do what you're supposed to do. And all these simple rules work so well to make your life better. And they're so trite.|"
"And-- staying cheerful -- with -- because it's a wise thing to do. Is that so hard? And can you be cheerful when you're absolutely mired in deep hatred and resentment? Of course you can't. So why would you take it on?"

On raising children
"I have not -- many of my children have worked out well. And I've had very little to do with it. I think they come into the world, to a certain extent, pre-made. And you just sit there and watch. I don't think they're -- it's been simply amazing to me a parent to note know much is sort of preordained. The shy baby is the shy adult. The booming, obnoxious, domineering baby is the booming, domineering, obnoxious adult. I've never found a way to fix that. I can be cheerful about it, but I can't fix it. I can change my reaction, but I can't change the outcome."

Feb 2019.
Credit: CNBC