{"id":334,"date":"2017-02-10T07:17:13","date_gmt":"2017-02-10T07:17:13","guid":{"rendered":"http:\/\/charliemungersays.com\/?p=334"},"modified":"2017-10-25T00:28:54","modified_gmt":"2017-10-25T00:28:54","slug":"35-eleven-gems-from-financial-times-interview-in-july-2009","status":"publish","type":"post","link":"https:\/\/charliemungersays.com\/index.php\/2017\/02\/10\/35-eleven-gems-from-financial-times-interview-in-july-2009\/","title":{"rendered":"35. Eleven Gems From Financial Times Interview in July 2009"},"content":{"rendered":"

\"\"<\/a><\/strong><\/b><\/p>\n

Excellent Book: Charlie Munger For All Seasons<\/a><\/p>\n

1. Peculiarly Successful and Why Not?<\/strong><\/b><\/p>\n

\u201cWarren is peculiar, and I\u2019m peculiar,\u201d says Mr Munger, who is also Berkshire\u2019s vice-chairman. \u201cWe\u2019ve got our own peculiar operating model. Nobody else operates the same way or stays in the game in a major corporation as long as we have, so we\u2019ve got a different model. And we like it that way.\u201d<\/p>\n

2. If It Wasn\u2019t Value Investing, It\u2019s Not Intelligent Is It?<\/strong><\/b><\/p>\n

Working 1,500 miles apart \u2013 Mr Buffett remains in his hometown of Omaha, Nebraska \u2013 the two \u201cintellectual pals\u201d have built up a stellar record by sticking to the basic principles of value investing: they buy companies in industries they understand, with managers they trust, at cut-rate prices. \u201cWe think all intelligent investing is value investing,\u201d he says. \u201cWhat the hell could it be if it wasn\u2019t value?\u201d<\/p>\n

3. Cigar Butt Investing Is Getting Difficult, Too Many People Are Looking For The Same Thing<\/strong><\/b><\/p>\n

While Mr Buffett\u2019s mentor, the economist Benjamin Graham, is considered the father of value investing, it is Mr Munger who is credited with helping Mr Buffett evolve beyond buying stocks for no other reason than that they were cheap.<\/p>\n

\u201cThat worked fine in the period after the 1930s,\u201d Mr Munger says. \u201cI don\u2019t think it works nearly as well now. Too many people are doing it.\u201d<\/p>\n

4. If People Just Rush To A Fad That Worked Well Lately, A Lot Of Them Are Going To Get Creamed<\/strong><\/b><\/p>\n

Many of Berkshire\u2019s holdings, from longtime investments such as Coca-Cola and Wells Fargo to last year\u2019s purchase of General Electric\u2019s preferred shares, are blue-chip companies considered the best at what they do.<\/p>\n

The strategy sounds simple enough, but Mr Munger says few investors practise it. \u201cYou can\u2019t believe the way that conventional wisdom invests money,\u201d he explains. \u201cThey tend to rush into whatever fad has worked lately. In my opinion, a lot of them are going to get creamed.\u201d<\/p>\n

5. Mandatory Meetings We Do. Ad Hoc For Everything Else.<\/strong><\/b><\/p>\n

There are no regular meetings at Berkshire, no corporate-speak or standard management memorandums that help define the cultures of so many companies.<\/p>\n

\u201cThe legally required meetings for corporate governance, we do those,\u201d Mr Munger says. \u201cEverything else is ad hoc.\u201d<\/p>\n

6. What\u2019s Better Than One Person Tap Dancing To Work? Well, Two Partners Tap Dancing To Work<\/strong><\/b><\/p>\n

\u201cWhen Warren talks about tap dancing to work, he\u2019s not kidding,\u201d he says. \u201cHis spirits lift as he goes through the office door. And I\u2019m the same way.\u201d<\/p>\n

7. Public Fury With Wall Street Was Justified<\/strong><\/b><\/p>\n

\u201cThe public is furious with Wall Street,\u201d he says. \u201cEveryone who is in a position to observe this says they\u2019ve never seen this much fury to one particular industry.\u201d<\/p>\n

Is it justified?<\/p>\n

\u201cAbsolutely.\u201d<\/p>\n

8. Disagree Without Having An Argument: Hear, Hear, My Friends.<\/strong><\/b><\/p>\n

While they no longer speak daily, rarely will more than a week pass between conversations. They still frequently send one another documents and books to read. And while they often disagree, Mr Buffett once told the Financial Times that they had \u201cnever had an argument\u201d.<\/p>\n

9. A Different Kind Of Fun But It\u2019s Fun All The Same<\/strong><\/b><\/p>\n

\u201cWe are having a huge amount of fun understanding how the world works,\u201d Mr Munger says.<\/p>\n

10. Warren Buffett And I Are In The Same\u00a0Club. Guess Which One?<\/strong><\/b><\/p>\n

\u201cHe\u2019s got a real fan club, but for good reason,\u201d Mr Buffett has said. \u201cI\u2019m a member, too.\u201d<\/p>\n

11. On Succession: Same, Same But Different.<\/strong><\/b><\/p>\n

\u201cThere\u2019s no successor to Charlie,\u201d Mr Buffett says. \u201cYou\u2019re not going to find anyone like him.\u201d<\/p>\n

Ref: https:\/\/www.ft.com\/content\/5192dade-6d6a-11de-8b19-00144feabdc0<\/span><\/p>\n

https:\/\/www.facebook.com\/groups\/charliemungersays\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Excellent Book: Charlie Munger For All Seasons 1. Peculiarly Successful and Why Not? \u201cWarren is peculiar, and I\u2019m peculiar,\u201d says<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[3,4],"tags":[],"class_list":["post-334","post","type-post","status-publish","format-standard","hentry","category-investment","category-wisdom"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/charliemungersays.com\/index.php\/wp-json\/wp\/v2\/posts\/334","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/charliemungersays.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/charliemungersays.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/charliemungersays.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/charliemungersays.com\/index.php\/wp-json\/wp\/v2\/comments?post=334"}],"version-history":[{"count":5,"href":"https:\/\/charliemungersays.com\/index.php\/wp-json\/wp\/v2\/posts\/334\/revisions"}],"predecessor-version":[{"id":901,"href":"https:\/\/charliemungersays.com\/index.php\/wp-json\/wp\/v2\/posts\/334\/revisions\/901"}],"wp:attachment":[{"href":"https:\/\/charliemungersays.com\/index.php\/wp-json\/wp\/v2\/media?parent=334"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/charliemungersays.com\/index.php\/wp-json\/wp\/v2\/categories?post=334"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/charliemungersays.com\/index.php\/wp-json\/wp\/v2\/tags?post=334"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}