I totally agree with this article, it’s about the philosophy of Charlie Munger, so how could you not agree? Although I think the correct term is “Sit on your bottom” investing, but that probably is just a British thing.
I can’t remember when I first heard of Charlie Munger but I can tell you precisely when I first heard of Warren Buffett. October 1987. I had gone fishing, having got completely fed up working in a stockbrokers in London the previous year. A thing called “The Big Bang” (basically de-regulating everything & giving it to US investment banks) had made the hours too punishing - the London stock market started trading at 8am instead of 9:30am.
So in October 1987 I was filling in time with different jobs & found myself in a little village when a storm tore up trees all over Southern England. Our village was cut off by a fallen tree. With so few people able to get into London, together with the fact that Wall St had fallen sharply the previous day, the London stock exchange closed that day. I think Wall Street closed too, concerned about programmed trading driving the market ever lower.
The day after that, when we got back to where we were living, and the newspapers were full of reports about market crashes, and market closures (just panic about everything), The Times (in London) carried an item about an investor who didn’t care. He just didn’t seem remotely interested.
Of course that was Warren Buffett. From memory the quote from Mr Buffett was “I don’t own anything that I intend to sell in the next 3 years, why should I care if they close the New York stock market.
That was the first time I heard of Warren Buffett, and understood that real investors (as opposed to speculators) are not that concerned about the stock market, because they buy carefully & like what they have.
I bought a copy of The Intelligent Investor in, I think, 1994 having seen a copy in a book shop overseas when travelling. Charlie Munger I probably heard of in the mid 90s as more books about Warren Buffett were published in the UK.
I think the recent articles about the retirement of Buffett from Berkshire were lacking a little - these 2 men lived life on their terms. No one told them what to do, made them go to meetings or waste time studying things that bored them. Or told them when to go to work.
I call that living your best life & I suspect that is why their investment returns were so good. They didn’t borrow money or spend much time contemplating the state of the economy. Omaha Nebraska must be close to the centre of the country & kept them grounded in the lives of ordinary Americans. What they eat, what they drive, how they buy furniture or insurance. That ordinary Americans drink coke. Of which there were 2 cans on display when Warren Buffett signed off.
Yes, I think anything Charlie Munger is pretty hard to disagree with - he had it all figured out. Their stories/lives/philosophies inspire me so much. To be a billionaire investor, in your 90's, with no enemies - in fact, everyone worships the ground they walked, that is a very special thing.
They are the blueprint for getting rich without losing a shred of dignity or happiness. I think if I strive to learn from them over my lifetime, nothing but good things can happen over time. To live entirely on your own terms, treat others well, and be very successful, that is the dream.
Thanks for that. Buffett signed off with a message to be thankful for being born in America and be kind to others less fortunate than you. Which was a good way to sign off.
Thank you for this insightful and refreshing perspective on investing. The emphasis on patience and truly “sitting on your ass” to let good businesses grow is such an important reminder in today’s hyperactive market. Your breakdown of the emotional roller-coaster and how doing nothing actually requires discipline and deep understanding really resonated with me.
I totally agree with this article, it’s about the philosophy of Charlie Munger, so how could you not agree? Although I think the correct term is “Sit on your bottom” investing, but that probably is just a British thing.
I can’t remember when I first heard of Charlie Munger but I can tell you precisely when I first heard of Warren Buffett. October 1987. I had gone fishing, having got completely fed up working in a stockbrokers in London the previous year. A thing called “The Big Bang” (basically de-regulating everything & giving it to US investment banks) had made the hours too punishing - the London stock market started trading at 8am instead of 9:30am.
So in October 1987 I was filling in time with different jobs & found myself in a little village when a storm tore up trees all over Southern England. Our village was cut off by a fallen tree. With so few people able to get into London, together with the fact that Wall St had fallen sharply the previous day, the London stock exchange closed that day. I think Wall Street closed too, concerned about programmed trading driving the market ever lower.
The day after that, when we got back to where we were living, and the newspapers were full of reports about market crashes, and market closures (just panic about everything), The Times (in London) carried an item about an investor who didn’t care. He just didn’t seem remotely interested.
Of course that was Warren Buffett. From memory the quote from Mr Buffett was “I don’t own anything that I intend to sell in the next 3 years, why should I care if they close the New York stock market.
That was the first time I heard of Warren Buffett, and understood that real investors (as opposed to speculators) are not that concerned about the stock market, because they buy carefully & like what they have.
I bought a copy of The Intelligent Investor in, I think, 1994 having seen a copy in a book shop overseas when travelling. Charlie Munger I probably heard of in the mid 90s as more books about Warren Buffett were published in the UK.
I think the recent articles about the retirement of Buffett from Berkshire were lacking a little - these 2 men lived life on their terms. No one told them what to do, made them go to meetings or waste time studying things that bored them. Or told them when to go to work.
I call that living your best life & I suspect that is why their investment returns were so good. They didn’t borrow money or spend much time contemplating the state of the economy. Omaha Nebraska must be close to the centre of the country & kept them grounded in the lives of ordinary Americans. What they eat, what they drive, how they buy furniture or insurance. That ordinary Americans drink coke. Of which there were 2 cans on display when Warren Buffett signed off.
This is a wonderful story.
Yes, I think anything Charlie Munger is pretty hard to disagree with - he had it all figured out. Their stories/lives/philosophies inspire me so much. To be a billionaire investor, in your 90's, with no enemies - in fact, everyone worships the ground they walked, that is a very special thing.
They are the blueprint for getting rich without losing a shred of dignity or happiness. I think if I strive to learn from them over my lifetime, nothing but good things can happen over time. To live entirely on your own terms, treat others well, and be very successful, that is the dream.
Thanks for sharing that story, Paul.
Thanks for that. Buffett signed off with a message to be thankful for being born in America and be kind to others less fortunate than you. Which was a good way to sign off.
Excellent piece on Investing wisdom. Easier ‘ read’ than done…
haha it certainly is!
Simple but not easy…
Excellent article as always! In our busy and chaotic world, the value of being a patient investor becomes only greater.
Thanks my friend! I couldn’t agree more.
Thank you.
Thank you for this insightful and refreshing perspective on investing. The emphasis on patience and truly “sitting on your ass” to let good businesses grow is such an important reminder in today’s hyperactive market. Your breakdown of the emotional roller-coaster and how doing nothing actually requires discipline and deep understanding really resonated with me.
Thank you for the kind words, Alexander.
I'm glad it resonated, that means a lot.
Sitting on your ass is definitely harder than it looks, it makes me appreciate successful investors a lot more, that's for sure.
Thank you for this excellent piece.
I am glad you found it valuable, JG.
Thank you for reading - It means a lot.