Thoughts on Charlie Munger's recent comments?

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theorist
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Re: Thoughts on Charlie Munger's recent comments?

Post by theorist » Fri Feb 14, 2020 7:54 pm

jacoavlu wrote:
Fri Feb 14, 2020 9:56 am
you can listen to the whole thing here instead of reading someone else's characterizations of his comments

https://www.youtube.com/watch?v=HS8neXkNnhw

Charlie is always interesting.

his comments about EBIDTA were about "adjusted EBIDTA"

listening to the whole thing I did not get the sense at all that he thinks current markets are a bubble

a questioner brought up the nifty fifty and he said today's markets are nothing like that

he also had many more good things to say about China than bad things
Thanks for posting the link. I listened to the whole thing while exercising this morning and afternoon. It is interesting and refreshing. Three things occur to me:

— the excerpts in the short article are wildly misleading as sole characterizations of his comments;

— he more or less defends tech stocks and the current market against any attempts to compare it to the nifty 50, and at no point says that we are in a bubble. In response to a question from a 28 year old (at the very end) about whether young people should be in equities, he replies with a discussion of the merits of deferred gratification and not spending your money on rolexes when young. Far from a warning about market climate;

— he is clearly positive on Chinese stocks, saying very explicitly close to the start of the question session that smart money is investing in China, and that the Chinese market has better investment opportunities right now than the US market. (His bluntness and explicitness on this point surprised me.)

He thinks Chinese investors behave stupidly, but he clearly also thinks most American investors behave stupidly — the Chinese are just newer at it, and so still behave even more stupidly.

It was fun to listen to, I recommend it to anyone who needs gym or walk material.

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nedsaid
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Re: Thoughts on Charlie Munger's recent comments?

Post by nedsaid » Sat Feb 15, 2020 9:34 am

garlandwhizzer wrote:
Fri Feb 14, 2020 1:30 pm
I don't believe that Charlie said or believes we're currently in a bubble. Nor do I believe that he feels the current market situation is actionable as in shifting large percentages of equity assets into bonds. I do believe that he thinks that the market is vulnerable to a signifiant downturn which it always is and continues to be. I believe he is concerned that much of our bull market gains are based on and dependent ongoing financial and accounting manipulations (EBITDA to make profits look higher, corporate buybacks to make PE more attractive, the lowest interest rates in history to drive investment assets from bonds to stocks, massive debt all all levels (government, household, corporate) poured on to stimulate the relatively stagnant economy. These measures, rather than what drove bull markets in most of past history--robustly growing economy, robust labor productivity growth, lower debt burdens, less aging demography challenges, moderate inflation--are what have in part created, maintained, and even increased the generous valuations on all investment assets that we see at the present time IMO. I think Charlie is simply saying what many other experienced investment analysts have been saying for quite some time even as stocks have continued to go up in value while economic growth has been considerably less. Don't expect the same robust returns over the next 11 years that we've had over the last 11. Investors have to an increasing extent focused on the generous rewards the markets have offered, expecting them to continue, without paying much attention to potential future risks. This is what usually happens in the later stages of a long bull market, but it doesn't mean that the bottom is going to fall out soon or you should shift big time from risk to safe assets.

Garland Whizzer
Stocks are risky, therefore caution is always warranted. Charley is delivering a warning but this is not gloom and doom. I am not seeing the euphoria of the late 1990's here but I am seeing a pickup in optimism. Not coincidental that we are on the cusp of another roaring twenties decade, this time the 2020's and not the 1920's. Economies correct as do markets. If you haven't rebalanced your portfolio in a while, it might be a good time to do so. If we are in for some good times ahead, you will have ample opportunities to harvest stock market gains through a rebalancing program. I just remember that awful feeling in 2009 when I realized that 2007 offered a great rebalancing opportunity and I declined to take it. Booming economies and booming markets do not go on forever without the inevitable corrections.
A fool and his money are good for business.

DB2
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Re: Thoughts on Charlie Munger's recent comments?

Post by DB2 » Sat Feb 15, 2020 10:13 am

wolf359 wrote:
Fri Feb 14, 2020 9:43 am


I am also concerned that the Fed actions last year to boost the economy and the stock market have restricted their ability to respond when the next recession hits. They can't lower interest rates much before going negative, they've been buying on the market (but not calling it QE), and the deficit limits the ability to increase federal spending. If the next recession gets really bad, I'm not sure what's going to happen. And if the economy as a whole gets that bad, I'm not sure what individual actions could be taken to shelter from that. Stocks, bonds, real estate, cash, international investing -- all might be ineffective.
I agree with your sentiments. I do believe some Gold exposure would be very effective in that situation.

inbox788
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Re: Thoughts on Charlie Munger's recent comments?

Post by inbox788 » Sat Feb 15, 2020 8:50 pm

Dandy wrote:
Fri Feb 14, 2020 12:42 pm
Mr. Bogle drastically cut his equity allocation just before the 2000 equity plunge.
Why? Is there any interview where he explains why he cut his allocation? Was it market timing?

FYI, Mr. Bogle was born in 1929. If someone cuts the equity allocation when they turn 70 or decides to be more conservative with fewer expected years left or starts pulling RMDs, it's not necessarily market timing, but fortunate coincidence with a life event.

Mr. Munger's investment horizon isn't the same as a 25 year old, and that may be playing a part in his comments. I haven't heard the specific comments or situation he's concerned about in the recent interview, but it would be helpful if we knew if he was talking about the next 3 days, weeks, months, years or decades.

jacoavlu
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Re: Thoughts on Charlie Munger's recent comments?

Post by jacoavlu » Sat Feb 15, 2020 9:07 pm

you can listen to his comments. I posted the link. As those who have listened have noted, the article linked by the OP does not provide an accurate representation of Charlie’s comments or sentiment from the Daily Journal annual meeting

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Re: Thoughts on Charlie Munger's recent comments?

Post by Dandy » Sat Feb 15, 2020 10:08 pm

Why? Is there any interview where he explains why he cut his allocation? Was it market timing?
Because the market was "extremely over valued". He also was facing major heart issues/operation. Yes it was market timing.

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Re: Thoughts on Charlie Munger's recent comments?

Post by nisiprius » Sat Feb 15, 2020 10:37 pm

I always feel that if someone is really impressed by Warren Buffett and/or Charlie Munger, they should buy BRK.B, and that's the long and the short of it. And that, I think, is why they share their insights--to make you comfortable entrusting them to manage your money. (In some cases, perhaps, to influence legislators or government officials).

Buy BRK.B or don't buy BRK.B.

Listening to a few sound bites every few months, or reading a shareholders' report once a year, then trying to turn them into a recipe for a do-it-yourself strategy makes no sense to me.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

jacoavlu
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Re: Thoughts on Charlie Munger's recent comments?

Post by jacoavlu » Sat Feb 15, 2020 11:00 pm

It’s just interesting. Charlie is an interesting person. Agree it’s not actionable. Neither is most everything I read on this forum.

Enzo IX
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Re: Thoughts on Charlie Munger's recent comments?

Post by Enzo IX » Sun Feb 16, 2020 12:31 am

I think Charles's spot on with his comments. What will they exclude next to pump up earnings in the income statement. Which makes the P/E look more reasonable.

How about excluding direct materials and direct labor.

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Re: Thoughts on Charlie Munger's recent comments?

Post by zeal » Sun Feb 16, 2020 6:19 am

My thoughts... He could be right. However, I think the status of the market only matters to someone who is trying to time the market. Not my forte, so Charlie's speculation doesn't really apply to my portfolio. Hope he's right for the sake of all those who follow his advice.

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lock.that.stock
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Re: Thoughts on Charlie Munger's recent comments?

Post by lock.that.stock » Sun Feb 16, 2020 6:54 am

I listened to the full interview and agree with some of the above comments - Charlie suggests that China is smart and has a lot of opportunities. He even said that a friend/colleague of his (I forgot the name he mentioned) has made alot of money investing in China.

I'm not sure who would treat this interview as foresight into the future. Charlie and Warren, although some of the greatest investors of our generation, still don't know what the future holds anymore than you or I do. They don't hold a crystal ball at their Berkshire office. Any comments about the future are speculations at best that are definitely not actionable.

I just found the interview to be interesting - listening to a legendary investor comment about technology, hydrogen cells, oil, electric vehicles etc. was refreshing and not the typical anti-technology anti-change dialogue you would expect to hear from someone his age.

I found the most concerning point in his whole speech his comment about negative interest rates. He is concerned about the effect it may have on the economy and doesn't understand how it will go.
Last edited by lock.that.stock on Sun Feb 16, 2020 9:26 am, edited 2 times in total.

make_a_better_world
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Re: Thoughts on Charlie Munger's recent comments?

Post by make_a_better_world » Sun Feb 16, 2020 8:53 am

He's also said that he believes the USA is "at or near the apex of a great civilization."

"...In 50-100 years, if we're a poor third to some countries in Asia, I wouldn't be surprised. If I had to bet, the part of the world that will do best will be Asia."

Munger is extremely intelligent and I respect him, particularly on his explanations of psychology in investing. (YouTube his lectures on human bias) In the end, he is still a human being and none of us can reliably predict the future. I am sure at some point the USA will lose dominance. Maybe that will be 500 years from now. Having done business with China and visiting Russia and Brazil, I cannot imagine any of these countries superseding the USA in the next decade.

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Re: Thoughts on Charlie Munger's recent comments?

Post by Flashes1 » Sun Feb 16, 2020 9:20 am

jacoavlu wrote:
Fri Feb 14, 2020 9:56 am
you can listen to the whole thing here instead of reading someone else's characterizations of his comments

https://www.youtube.com/watch?v=HS8neXkNnhw

Charlie is always interesting.

his comments about EBIDTA were about "adjusted EBIDTA"

listening to the whole thing I did not get the sense at all that he thinks current markets are a bubble

a questioner brought up the nifty fifty and he said today's markets are nothing like that

he also had many more good things to say about China than bad things
Right. EBITDA is used by every banker and competent investor to determine cash flow. It's the calculation of "Adjusted " EBITDA by companies and lead bankers syndicating a transaction to other banks/investors is where things get dicey. Certain non-cash items are standard addbacks to EBITDA such as non-cash impairment, and in my world, stock compensation expense.

Non-Standard adjustments is where I struggle such as cost/sales synergies, endless restructuring & integration costs, and cash write-downs of obsolete inventory. I think that's what Munger's talking about.

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Re: Thoughts on Charlie Munger's recent comments?

Post by inbox788 » Sun Feb 16, 2020 12:38 pm

Dandy wrote:
Sat Feb 15, 2020 10:08 pm
Why? Is there any interview where he explains why he cut his allocation? Was it market timing?
Because the market was "extremely over valued". He also was facing major heart issues/operation. Yes it was market timing.
Exactly my point. Risk appetite is dependent on one's particular situation by both the speaker as well as the listener. Market timing should not be dependent on one's specific situation, and long term BH investing should not involve the market situation. Sometimes it's difficult to separate the 2 going forward, and revisionist memory may wrongly attribute the actual reasoning.

For all the successful (or luck) market timers in 2000, the bigger challenge was when to get back in. And if you act on the information/news today, do you act again based on the comments at the next annual meeting? and if not, what do you base it on? [again, rhetorical]

staustin
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Re: Thoughts on Charlie Munger's recent comments?

Post by staustin » Sun Feb 16, 2020 12:45 pm

Flashes1 wrote:
Sun Feb 16, 2020 9:20 am
jacoavlu wrote:
Fri Feb 14, 2020 9:56 am
you can listen to the whole thing here instead of reading someone else's characterizations of his comments

https://www.youtube.com/watch?v=HS8neXkNnhw

Charlie is always interesting.

his comments about EBIDTA were about "adjusted EBIDTA"

listening to the whole thing I did not get the sense at all that he thinks current markets are a bubble

a questioner brought up the nifty fifty and he said today's markets are nothing like that

he also had many more good things to say about China than bad things
Right. EBITDA is used by every banker and competent investor to determine cash flow. It's the calculation of "Adjusted " EBITDA by companies and lead bankers syndicating a transaction to other banks/investors is where things get dicey. Certain non-cash items are standard addbacks to EBITDA such as non-cash impairment, and in my world, stock compensation expense.

Non-Standard adjustments is where I struggle such as cost/sales synergies, endless restructuring & integration costs, and cash write-downs of obsolete inventory. I think that's what Munger's talking about.
Exactly right.. wework's 'community adjusted ebitda' proposed as part of their failed ipo is a perfect example. there are other examples of companies either unprofitable or debt laden/insufficient cash flow using all sorts of "further adjusted ebitda" in their sec filings and investor reports. completely ridiculous. it's simply non gaap accounting. these type things are what Munger is referring to.

Malloryslp
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Re: Thoughts on Charlie Munger's recent comments?

Post by Malloryslp » Sun Feb 16, 2020 1:12 pm

If Munger is including the $6.6T the Fed has quietly pumped into repo crisis on Wall St since 9/2019 I'd agree with him. No one is talking about it. Bubble warning.

JonnyB
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Re: Thoughts on Charlie Munger's recent comments?

Post by JonnyB » Sun Feb 16, 2020 1:30 pm

Dandy wrote:
Sat Feb 15, 2020 10:08 pm
Why? Is there any interview where he explains why he cut his allocation? Was it market timing?
Because the market was "extremely over valued". He also was facing major heart issues/operation. Yes it was market timing.
If Bogle did reduce his equity allocation in 2000 before the bursting of the dot-com bubble, it was one of the best market timing decisions of all time.

He would have still been ahead of the stock market in 2017, eighteen years later.

Dandy
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Re: Thoughts on Charlie Munger's recent comments?

Post by Dandy » Sun Feb 16, 2020 2:32 pm

He did reduce it rather drastically -- something like going from 75% to 40% equities. As is the pattern over the longer term equities have performed well. Given his age and heath issues at the time I don't know if he thought he would still be alive until very recently. Glad he was.

inbox788
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Re: Thoughts on Charlie Munger's recent comments?

Post by inbox788 » Sun Feb 16, 2020 2:36 pm

Malloryslp wrote:
Sun Feb 16, 2020 1:12 pm
If Munger is including the $6.6T the Fed has quietly pumped into repo crisis on Wall St since 9/2019 I'd agree with him. No one is talking about it. Bubble warning.
Isn't that more than the entire fed balance sheet?

https://wallstreetonparade.com/2020/01/ ... ial-crash/

The way I understand it is that there is a difference between betting $1M and losing or winning $1M at the casino. Or a company that has annual sales or $1M vs annual earnings of $1M.

It's easy to conflate numbers into meaningless comparisons, and I think that was the point of the "adjusted EBIDAT". I recall around 2000 that there was a lot of adjusted income swaps and counting eyeballs, and many adjustments with few being realized (e.g. AOL-TW). Beyond the direct impact to the company and investors in companies involved in these creative financing adjustments, there is also the indirect effect they play on other companies trying to compete with unrealistic numbers, such as ATT and Sprint trying to compete with Worldcom/MCI. I hope were not at these levels today.

https://www.tulsaworld.com/archive/worl ... 76a31.html


https://www.federalreserve.gov/monetary ... trends.htm

Balance sheet looks like it did recently grow from 3.8T to 4.2T, so you could say they pumped $400B. Which is still a significant amount compared to prior QE.

https://en.wikipedia.org/wiki/Quantitat ... 2,_and_QE3

Gemini1962
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Re: Thoughts on Charlie Munger's recent comments?

Post by Gemini1962 » Sun Feb 16, 2020 3:37 pm

Bit ironic for a billionaire to be talking about excess!

Caduceus
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Re: Thoughts on Charlie Munger's recent comments?

Post by Caduceus » Tue Feb 18, 2020 8:33 am

Flashes1 wrote:
Sun Feb 16, 2020 9:20 am
jacoavlu wrote:
Fri Feb 14, 2020 9:56 am
you can listen to the whole thing here instead of reading someone else's characterizations of his comments

https://www.youtube.com/watch?v=HS8neXkNnhw

Charlie is always interesting.

his comments about EBIDTA were about "adjusted EBIDTA"

listening to the whole thing I did not get the sense at all that he thinks current markets are a bubble

a questioner brought up the nifty fifty and he said today's markets are nothing like that

he also had many more good things to say about China than bad things
Right. EBITDA is used by every banker and competent investor to determine cash flow. It's the calculation of "Adjusted " EBITDA by companies and lead bankers syndicating a transaction to other banks/investors is where things get dicey. Certain non-cash items are standard addbacks to EBITDA such as non-cash impairment, and in my world, stock compensation expense.

Non-Standard adjustments is where I struggle such as cost/sales synergies, endless restructuring & integration costs, and cash write-downs of obsolete inventory. I think that's what Munger's talking about.
Munger is against EBITDA, period. Not "adjusted EBITDA" or some variant of it. His objection - and Warren Buffett's as well - to EBITDA is that depreciation is a real cost, as is amortization, and interest. So the concept of using EBITDA to begin with is just pure baloney to him. He's talked about serving on boards where it's fairly obvious that bankers use EBITDA as a way of dressing things up because if you were to look at real earnings - that is, earnings after you've taken off depreciation, interest, amortization and taxes, you'd be in pretty ugly territory.

Flashes1
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Re: Thoughts on Charlie Munger's recent comments?

Post by Flashes1 » Tue Feb 18, 2020 9:17 am

Caduceus wrote:
Tue Feb 18, 2020 8:33 am
Flashes1 wrote:
Sun Feb 16, 2020 9:20 am
jacoavlu wrote:
Fri Feb 14, 2020 9:56 am
you can listen to the whole thing here instead of reading someone else's characterizations of his comments

https://www.youtube.com/watch?v=HS8neXkNnhw

Charlie is always interesting.

his comments about EBIDTA were about "adjusted EBIDTA"

listening to the whole thing I did not get the sense at all that he thinks current markets are a bubble

a questioner brought up the nifty fifty and he said today's markets are nothing like that

he also had many more good things to say about China than bad things
Right. EBITDA is used by every banker and competent investor to determine cash flow. It's the calculation of "Adjusted " EBITDA by companies and lead bankers syndicating a transaction to other banks/investors is where things get dicey. Certain non-cash items are standard addbacks to EBITDA such as non-cash impairment, and in my world, stock compensation expense. I.E. EPS calculations are laughable how easily they are manipulated.

Non-Standard adjustments is where I struggle such as cost/sales synergies, endless restructuring & integration costs, and cash write-downs of obsolete inventory. I think that's what Munger's talking about.
Munger is against EBITDA, period. Not "adjusted EBITDA" or some variant of it. His objection - and Warren Buffett's as well - to EBITDA is that depreciation is a real cost, as is amortization, and interest. So the concept of using EBITDA to begin with is just pure baloney to him. He's talked about serving on boards where it's fairly obvious that bankers use EBITDA as a way of dressing things up because if you were to look at real earnings - that is, earnings after you've taken off depreciation, interest, amortization and taxes, you'd be in pretty ugly territory.
I don't think bankers & investors are "dressing" things up when they calculate EBITDA. They are trying to determine a Company's true recurring cash flow and leverage. Non-cash items like D&A and impairment and non-recurring items like merger costs from the Company's largest acquisition help calculate the normalized run-rate EBITDA and cash flow.

Again, anyone can run the numbers anyway they choose. Charlie's calculations have served him well, but I'm sure I could poke holes in his calculations and call them aggressive if I wanted to. EPS calculations are laughable how easily they are manipulated.

Oregano
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Re: Thoughts on Charlie Munger's recent comments?

Post by Oregano » Fri Feb 21, 2020 3:47 pm

See Exhibit 1 for something you might choose to be concerned about. Or not, if you assume Mr. Market is pricing assets rationally.

https://www.avantisinvestors.com/conten ... emium.html

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unclescrooge
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Re: Thoughts on Charlie Munger's recent comments?

Post by unclescrooge » Fri Feb 21, 2020 4:54 pm

Caduceus wrote:
Fri Feb 14, 2020 11:22 am
Ramjet wrote:
Fri Feb 14, 2020 11:22 am
Charlie Munger is 96, I'm not basing any actions off this
Have you read the latest WSJ interview of Charlie Munger? He's sharper at 96 than 99.9% of 25-year olds out there. Really.
I saw him last week at the California Club. He was fighting to stay awake at 8pm :mrgreen:

DesertGator
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Re: Thoughts on Charlie Munger's recent comments?

Post by DesertGator » Fri Feb 21, 2020 5:09 pm

IlikeJackB wrote:
Thu Feb 13, 2020 8:38 pm
DesertGator wrote:
Thu Feb 13, 2020 7:04 pm
I prefer John Bogle's advice over Charlie Mungers, and I don't like his politics either.
Who cares whether you like his politics?
Perhaps you should care, as if you are interested in his comments enough to read a discussion about them, perhaps you might care to consider what his biases may be. My belief is they taint his world view and decision making. But don't listen to me.

Why do you read this forum?

Puretaxableindexer
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Re: Thoughts on Charlie Munger's recent comments?

Post by Puretaxableindexer » Sat Feb 22, 2020 9:09 am

I never listen to people like Buffet or Munger nor any other talking head, they all have agendas. I just dollar-cost avg into my diverse index funds and allocate 70/30. This formula always works.

Flashes1
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Re: Thoughts on Charlie Munger's recent comments?

Post by Flashes1 » Sat Feb 22, 2020 9:20 am

Puretaxableindexer wrote:
Sat Feb 22, 2020 9:09 am
I never listen to people like Buffet or Munger nor any other talking head, they all have agendas. I just dollar-cost avg into my diverse index funds and allocate 70/30. This formula always works.
Yep, there's a lot of folks who don't appreciate how Buffett will largely shirk federal taxes by donating most of his fortune to charities that support causes in foreign countries. It's hard to respect.

jacoavlu
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Re: Thoughts on Charlie Munger's recent comments?

Post by jacoavlu » Sat Feb 22, 2020 9:24 am

Puretaxableindexer wrote:
Sat Feb 22, 2020 9:09 am
I never listen to people like Buffet or Munger nor any other talking head, they all have agendas. I just dollar-cost avg into my diverse index funds and allocate 70/30. This formula always works.
it’s funny that’s pretty much what Buffett has said you should do

jacoavlu
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Re: Thoughts on Charlie Munger's recent comments?

Post by jacoavlu » Sat Feb 22, 2020 9:28 am

Flashes1 wrote:
Sat Feb 22, 2020 9:20 am
Puretaxableindexer wrote:
Sat Feb 22, 2020 9:09 am
I never listen to people like Buffet or Munger nor any other talking head, they all have agendas. I just dollar-cost avg into my diverse index funds and allocate 70/30. This formula always works.
Yep, there's a lot of folks who don't appreciate how Buffett will largely shirk federal taxes by donating most of his fortune to charities that support causes in foreign countries. It's hard to respect.
reference?

I would be interested to read.

certainly giving his BRK shares away is serving greater good than keeping it for his kids (and estate taxes) right?

I’ve not researched where he’s donating other than lots to Gates Foundation

mhlambert
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Re: Thoughts on Charlie Munger's recent comments?

Post by mhlambert » Sat Feb 22, 2020 9:33 am

Yep, there's a lot of folks who don't appreciate how Buffett will largely shirk federal taxes by donating most of his fortune to charities that support causes in foreign countries. It's hard to respect.
People are people regardless of where the accident of birth deposited you on the planet.

Puretaxableindexer
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Re: Thoughts on Charlie Munger's recent comments?

Post by Puretaxableindexer » Sat Feb 22, 2020 10:02 am

jacoavlu wrote:
Sat Feb 22, 2020 9:28 am
Flashes1 wrote:
Sat Feb 22, 2020 9:20 am
Puretaxableindexer wrote:
Sat Feb 22, 2020 9:09 am
I never listen to people like Buffet or Munger nor any other talking head, they all have agendas. I just dollar-cost avg into my diverse index funds and allocate 70/30. This formula always works.
Yep, there's a lot of folks who don't appreciate how Buffett will largely shirk federal taxes by donating most of his fortune to charities that support causes in foreign countries. It's hard to respect.
Buffet advocates for a higher estate tax so he can buy family-owned businesses on the cheap.

reference?

I would be interested to read.

certainly giving his BRK shares away is serving greater good than keeping it for his kids (and estate taxes) right?

I’ve not researched where he’s donating other than lots to Gates Foundation

jacoavlu
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Re: Thoughts on Charlie Munger's recent comments?

Post by jacoavlu » Sat Feb 22, 2020 11:37 am

^^^ your quote of my post is misformatted, it appears as your words in my quoted post

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tadamsmar
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Re: Thoughts on Charlie Munger's recent comments?

Post by tadamsmar » Sat Feb 22, 2020 11:50 am

“We’re partial to putting out large amounts of money where we won’t have to make another decision. If you buy something because it’s undervalued, then you have to think about selling it when it approaches your calculation of its intrinsic value. That’s hard. But if you buy a few great companies, then you can sit on your ass. That’s a good thing.” - Charlie Munger

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Re: Thoughts on Charlie Munger's recent comments?

Post by 3funder » Sat Feb 22, 2020 2:42 pm

Dandy wrote:
Sat Feb 15, 2020 10:08 pm
Why? Is there any interview where he explains why he cut his allocation? Was it market timing?
Because the market was "extremely over valued". He also was facing major heart issues/operation. Yes it was market timing.
I believe he also said something about bonds looking cheap.

Oregano
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Re: Thoughts on Charlie Munger's recent comments?

Post by Oregano » Sat Feb 22, 2020 5:56 pm

Flashes1 wrote:
Sat Feb 22, 2020 9:20 am
Puretaxableindexer wrote:
Sat Feb 22, 2020 9:09 am
I never listen to people like Buffet or Munger nor any other talking head, they all have agendas. I just dollar-cost avg into my diverse index funds and allocate 70/30. This formula always works.
Yep, there's a lot of folks who don't appreciate how Buffett will largely shirk federal taxes by donating most of his fortune to charities that support causes in foreign countries. It's hard to respect.
Hard to respect that he wants to help people that are more in need than most of us in the U.S.? Check your priorities. It is a way bigger disgrace that so many people dodge taxes by giving to religious organizations when they typically have a tiny proportion of their expenses going to charity.

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