Charlie Munger: “Want to Get Rich? Avoid Too Much” My Money – 16 hours ago

Jakarta, CNBC Indonesia – The late Charlie Munger, the famous investor and Warren Buffett’s right hand man at Berkshire Hathaway, gave several tips for success when he was interviewed by CNBC International a month before he breathed his last breath.

Munger said that there is no secret to his success. This is because what he does is avoid a lot of things that generally hinder success.

“I don’t understand the secret (of my success). I always avoid behavior that usually drags people down (in adversity). You teach me to play poker the wrong way, I will avoid it. You teach me to do something wrong, so will I “avoid it. Of course, I avoid a lot of those things because I’m very careful,” Munger told CNBC last month.

One of the things that Munger avoids is the traps of life related to spending. Reportedly, there are similarities between him and Buffett. Munger also lived in the same house for 70 years.

This caution is also reflected in Munger’s investment methods. As a big-time investor, Munger is reluctant to invest in digital assets such as crypto, which he says is full of speculation.

Charlie Munger style investing

Charlie Munger’s investment approach is based on the assumption that good opportunities are few and far between. As he once said, “Life doesn’t just shower you with unlimited opportunities.”

Therefore, Munger’s process was not about finding as many good ideas as he could. Instead, he seeks to eliminate bad and mediocre ideas first. This may seem like a backward approach, but he often talks about the importance of turning one’s thinking around.

Munger uses a buy and hold investment strategy. As he said, “The big money is not in buying and selling, but in waiting.”

Lastly, Munger is known as a value investor, but there are important differences to note in his investment style. While many value investors look for cheap stocks regardless of the quality of the business, Munger is willing to pay more for quality.

In his 2014 letter to Berkshire Hathaway shareholders, Buffett credited Munger with changing his perspective on value investing.

Buffett even quoted Munger as saying, “Forget what you know about buying fair businesses at a good price, instead, buy good businesses at a fair price.”

[Gambas:Video CNBC]

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