Charlie munger hes a poker player well see pretend

charlie munger hes a poker player well see pretend

At 95, Charlie Munger is best known for his steady role as the right-hand man of investing legend Warren Buffett. Don't miss: The best credit cards for building credit. In addition to the his role alongside Buffett, Munger is chairman of the publisher the Daily Journal Corp. Munger has had, by almost any standard, a wildly successful life — and a long one, at that. He's nearly a centenarian. Munger went on to rattle off a list of his best advice, each lesson succinctly delivered in bite-size form.
  • The 56 Best Charlie Munger Quotes
  • Charlie Munger on poker | Alpha Vulture
  • Charlie Munger Quotes – Investing Thoughts by Stef
  • The 56 Best Charlie Munger Quotes
  • Charlie Munger - Psychology of Human Misjudgement - Summary Lessons
  • He is a generalist with broad knowledge across multiple fields. He goes from A to Z in one move. If there is anyone who offers better investment quotes than Warren Buffett, it is Charlie Munger.

    The 56 Best Charlie Munger Quotes

    The remainder of this article is dedicated to presenting and analyzing quotes from Charlie Munger as they apply to business, investing, and living a fulfilling life. Munger is perhaps best-known as a devoted life-long learner in a wide number of disciplines. You may have noticed students who just try to remember and pound back what is remembered.

    Well, they fail in school and fail in life. As this quote suggests, Munger relied heavily on mental models in his pursuit to understand the world around him. Most people are trained in one model — economics, for example — and try to solve all problems in one way.

    Charlie Munger on poker | Alpha Vulture

    You know the old saying: Prefend the man with a hammer, the world looks like a nail. This is a dumb way of handling problems. Munger believes that the best way to learn is by mastering the best that other people have figured out:. Reading and understanding the great ideas in philosophy, economics, science, and other disciplines slowly opens your mind to different possibilities in a way that staying in one narrow field alone will never be able to accomplish.

    Munger describes how some people have an internal disposition for learning in the following passage:. Partly it is inborn temperament. Some people do not have a good temperament for investing. Obviously, the more hard lessons you can learn vicariously, instead of from your own terrible experiences, the better off you will be. Warren Buffett has become one hell of a lot better investor since the day I met him, and so have I.

    If we had been frozen at any given stage, with the knowledge hand we had, the record would have been much worse than it is. When it comes to learning, Munger particularly emphasized the hard sciences. He studied mathematics as an undergraduate student though he never completed that degreeand maintained his bias toward quantitative subjects for the rest of his life.

    Munger is clearly an unorthodox seee. Given this knowledge, it is unsurprising that he thinks the current postsecondary education system is broken:.

    Charlie Munger Quotes – Investing Thoughts by Stef

    There is fatal disconnectedness. This poor teaching is especially present in the field of investing, as the following quotes illustrate:. Another reason is his patient temperament. Charlie Munger loves psychology. In a speech called The Psychology of Human Misjudgment that Munger delivered to Caltech students inhe outlined his perspective on the 25 cognitive biases mumger have the greatest ability to impair human decision-making.

    The 25 biases are:. Each of these ideas is outside the scope of this article. As we saw earlier, Munger ran his own investment partnership that beat the market over a meaningful period of time. Accordingly, his thoughts on when to pker stocks are worth discussing.

    Oct 20,  · Charlie Munger – The Psychology of Human Misjudgement. We can make better decisions if we understand why people make poor choices and look for ways to avoid the same mistakes. It’s why Charlie Munger has held a lifelong interest in human cognition. Dissatisfied with academic psychology, he developed his own model for standard thinking. Sep 01,  · Charlie Munger’s Life & Investment Partnership Results. Charlie Munger has had a long life (he is currently 97 years old and still working!). His life is best summarized with the following from the acclaimed book Poor Charlie’s Almanack: Source: Poor Charlie’s Almanack. As mentioned, he previously ran his own investing gracecao.coted Reading Time: 9 mins. Mar 06,  · 9 thoughts on “ Charlie Munger on poker ” Adam March 6, at pm. I couldn’t agree more! While I’m not a professional poker player, I did play a significant amount of online poker for throughout my college years (mostly mid-stakes NL, 50k hands/month at my peak).Estimated Reading Time: 2 mins.

    When the crowd moves on, large losses often follow large gains. Munger seeks opportunity that is attractive when adjusted for risk. And you have to know enough to know whether the gamble is mispriced. Usually, this entails buying businesses below their intrinsic value. Buying businesses below their fair value requires you have an idea of what fair value is.

    When the crowd becomes overly pessimistic they focus on negative possibilities and discount positive possibilities. Having a better estimate of the real probabilities gives an investor a sizeable edge that can be exploited. Munger recommends waiting for the best opportunities to come around. When they do, move quickly and decisively.

    You stuck to your principles and when opportunities came along, you pounced on them with vigor. The opportunities Munger looks for are great lretend trading at pretrnd discount to their fair value. So what defines a great business? Munger thought that a key characteristic of a good sew was one that required minimal reinvestment.

    Said differently, Munger appreciates the ability to withdraw cash from a strong performing business. On the surface, it might seem like this is always the case. Munger also favored business s that were easy to understand, and more importantly, easy to manage.

    The 56 Best Charlie Munger Quotes

    To Charlie Munger, patience is a virtue:. Minger uses the economic concept of opportunity cost to filter through investment opportunities. The Berkshire investment managers eschew academic investment analysis techniques like weighted average cost of capital WACCinstead preferring the far-simpler opportunity cost.

    The following exchange between Warren Buffett and Aell Munger at a Berkshire Hathaway annual meeting illustrates this:. We just look to do the most intelligent thing we can with the capital that we have.

    charlie munger hes a poker player well see pretend

    We measured anything against our alternatives. Have you, Charlie? Munger: Never. A perfectly amazing mental malfunction. Munger also believed that a compelling competitive advantage ese one reason to be interested in a stock. As an example, Munger relates geometry to scale-based competitive advantages often called economies of scale in the following passage.

    Some come from s i mple geometry. So as you increase the dimensions, you prtend ho l d a l ot more vo l ume per unit area of steel. And there are al l kinds of things like that where the s i mple geometry- the simple reality- giv es you an advantage of scale.

    Charlie Munger - Psychology of Human Misjudgement - Summary Lessons

    I find by staying abreast of our Berkshire subsidiaries and by regularly reading business newspapers and magazines, I am exposed to an enormous amount of material at the micro charlif. The next section discusses his thoughts on portfolio diversification. As mentioned earlier in this article, Charlie Munger ignores diversification in the traditional sense.

    Munger was munger owning as few as three stocks. The cost of diversifying is forgoing putting more capital to work in your best idea. Viewed in this manner, a concentrated portfolio is logical — if you have a high conviction your forecasts pretend accurate. The greater degree of certainty you have in your investing skill, the fewer securities you need to own in your portfolio.

    A few major opportunities, clearly recognized as such, will usually come to one who continuously searches and waits, with a curious mind that loves diagnosis involving multiple variables. And then all that is required is a willingness to bet heavily when the odds are extremely favorable, using resources available as a result of prudence and player in the past.

    His decisions on when to sell stocks are similarly atypical and discussed in the next section well this article. Charlie Munger is a notoriously long-term investor. This is because there are a number of significant benefits that come from owning great businesses for long periods of time. But if you buy a few great companies, then you can sit on your ass.

    Munger holds for the long-term partially because his conservative, low-risk investment strategy works best when applied for very long periods of time. His investments are slow-and-steady decisions that, in aggregate, outperform competitors with more irrational risk tolerance.

    This naturally brings the tortoise-and-the-hare analogy to mind:. This happens as the tortoise stumbles on some particularly effective way to apply the best previous work, or simply avoids standard calamities. We try more to profit from always remembering the obvious than from grasping the esoteric.

    It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not see, instead of trying to be very intelligent. Munger has little risk tolerance and is playre very conservative investor. Munger poker that there are far too many people looking to take advantage of less informed investors. If something seems too good mnger be true, it probably is.

    This certainly holds when palyer comes to pgetend and other complicated financial instruments. Agree munver the soft skills are very important, and actually think that this is often what separates average players and good players. Those skills might be a bit more important for a poker player than for investing, because with investing you have plenty of time to review your decisions and logic, reducing the influence of emotions.

    And unlike some value investors I would not directly dismiss TA completely. There is significant scientific evidence that the very basic TA-strategies trend following do produce abnormal returns, and the same mechanics that make it possible for value investors to pick up bargain priced stocks make it possible that a trend following strategy can work.

    Both are caused by irrationality. There is also a lot of total nonsense in TA were people use complex data mined patterns, but I believe there is actually some sort of reasonable basis behind the discipline. Then you should look into them, right? There are also value based strategies that you can use and are more passive than doing the active work of going through annual reports.

    The magic formula is an example, and if I wanted charlie go for an easy approach Hes would probably go for something in that direction.

    Background This speech was originally given by Charlie Munger at USC Business School in The full title of the talk is “”A Lesson on Elementary, Worldly Wisdom As It Relates To Investment Management & Business”. Speech Transcript I'm going to play a minor trick on you today because the subject of my talk is [ ]. Mar 06,  · 9 thoughts on “ Charlie Munger on poker ” Adam March 6, at pm. I couldn’t agree more! While I’m not a professional poker player, I did play a significant amount of online poker for throughout my college years (mostly mid-stakes NL, 50k hands/month at my peak).Estimated Reading Time: 2 mins. 4. “Three rules for a career: 1) Don’t sell anything you wouldn’t buy yourself; 2) Don’t work for anyone you don’t respect and admire; and 3) Work only with people you enjoy.”. 5. “When any guy offers you a chance to earn lots of money without risk, don’t listen to the rest of his sentence.

    And there is of course a lot of evidence suggesting that value investing works better than TA: there is no trend following equivalent of Buffet.

    4 thoughts on “Charlie munger hes a poker player well see pretend”

    1. John Eatmon:

      In his capacity, Munger has been a behind-the-scenes co-thinker at Berkshire and has influenced many a decision made by Warren Buffett. Munger was chair of Wesco Financial Corporation from through Unlike Warren Buffett, Charlie Munger has claimed that he is a generalist for whom investment is only one of a broad range of interests that include architecture, philosophy, philanthropy, investing, yacht-design, etc.

    2. Carmen Deyalsingh:

      One of the best antidotes to this folly is a good poker skill learned young. The teaching value of poker demonstrates that not all effective teaching occurs on a standard academic path.

    3. Jessica Dasch:

      Munger actually managed his own investment partnership before teaming up with Buffett at Berkshire Hathaway. Investors can learn from his actionable insights and incorporate them in both business and life.

    4. Dave Whitney:

      You are about to read quotes from the legendary investor and thinker Charlie Munger. Their combined wisdom and wit is pure brilliance.

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