#CharlieMunger #inflation #CharlieMungerinflation
Daily Journal Chairman and Berkshire Hathaway Vice Chairman Charlie Munger discusses inflation issues and answers questions at the annual Daily Journal shareholders’ meeting.
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Charlie Munger, the renowned investor, and business partner of Warren Buffett, recently expressed his concerns about the current state of inflation. In a recent interview, Munger warned that we are flirting with serious trouble due to the rising inflation rates.
Inflation is the steady increase in the general price level of goods and services in an economy over a period of time. It erodes the purchasing power of money and can have a detrimental impact on the economy if left unchecked. Munger’s warning comes at a time when inflation rates are on the rise globally.
Munger argues that while some level of inflation is expected and even healthy for an economy, the current surge in prices is cause for concern. He highlights that the unprecedented fiscal and monetary stimulus measures taken by governments and central banks in response to the COVID-19 pandemic have led to a surge in money supply. As a result, the excess liquidity in the market puts upward pressure on prices, leading to inflationary pressures.
Moreover, Munger points out that the massive government spending has contributed to the problem. With rising deficits and increasing debt burdens, governments are essentially printing money to finance their spending, which exacerbates inflationary pressures. Munger believes that this combination of excessive liquidity and government spending is a recipe for disaster.
Munger’s concerns are not unfounded. In recent months, we have witnessed rising prices across various sectors. Commodities such as lumber, copper, and oil have seen substantial price increases. Additionally, consumer goods, housing, and healthcare costs have been rising, putting pressure on households and businesses alike.
The consequences of unchecked inflation can be dire. It erodes the value of savings as the purchasing power of money declines. Higher production costs can lead to reduced profitability for businesses. Moreover, inflation can negatively impact investments and retirement savings, making it harder for individuals and families to build wealth.
Munger’s warning serves as a wake-up call for policymakers and investors. As he suggests, it is essential to take immediate action to address the root causes of inflation. Governments need to reassess and potentially curtail excessive spending, while central banks should carefully consider their monetary policies and avoid flooding the market with excessive liquidity.
Investors should also take note of Munger’s concerns. Inflation has historically been detrimental to financial markets. Stocks, bonds, and other asset classes can suffer as rising prices eat into returns. Protecting one’s investment portfolio against inflation requires diversification and considering investment options that have historically performed well during periods of inflation, such as real estate, commodities, or inflation-linked bonds.
Charlie Munger’s warning about flirting with serious trouble regarding inflation cannot be ignored. As an experienced investor with decades of success, his insights are valuable for both policymakers and investors. It is crucial that everyone recognizes the dangers of unchecked inflation and takes appropriate action to safeguard our economy and financial well-being.
Very difficult to compare Japan and the US. Everything is so different in Japan there is nothing like it.
He is one of the most brilliant investor the last decade.
His purchase of a 10% stake in the chinese BYD about 10 years ago by Berkshire yielded a 5,000% return.
AMAZING.
I wish I followed him into BYD.
I was too skeptical …….sigh.
F capitalist. Enemy for nation
He's right on all points. We could learn a lot from japan. About how to have a cohesive society.
Race hustlers and woke liberals are destroying the success of Western nations.
Bottom line we got the wrong people running our country here in the US.
Reminds me how wide open borders destroyed Rome
You see a hero. I see a parasite.
What’s the solution to printing money, Charlie?
these are the people who've destroyed the planet. Let's ask them for their advice on how to fix it!
taking a vacation somewhere in nebraska omaha for their annual meeting anyways taking cookies from triple ddd companies 2 triple aaa
I listened to you, I made $50.000 investments, if I go bankrupt, I will come to your grave.
Here's a guy that's 99 years old who started investing in the 60's with his buddy Buffett and they got a big pile of money 190 years old between the two of them they NEVER made anything had a factory had a bunch of employees they just invested and played the markets and here they are no hobby's Buffets kids are estranged put on a suit and tie and talk about money. You give em 20,000 grand like they started with in 1960 and they can't make a billion in 10 years like they did. I'm glad for them they hit a strike but they're rich and that's it! Is that what you want? to sit there at 90 and talk money?
Neva ben don befo…. like this. When it has been done, it ended bad.
Buckle Up Buckaroos there aint no gettinf of off this train
mono ethic
Diversity is our Great Excuse for non-performance and the Great Reset. Printing money is to destroy the Boomers' accumulated wealth. There will be little afterwards.
Our world has 3 fundamental practices that are problematic.
If we dont understand the root causes of a problem we will address the symptoms or the actors, not the causes.
The 1st is that large private and Central banks have obtained the Exclusive franchise to create ALL new Currency as Debt, with interest attached.
An increasing population needs an increasing currency, but it is all created as a debt bearing interest.
This indebts the whole world, every person, every government, in totally unpayable debts, enslaving us all to bankers through personal debt or ever increasing excessive taxation, surcharges, permits, licences, registrations, regulations, fees, rates, duties, fines, levies, adinfinitum, of which an increasing volume goes straight to the debt creators, who created it for free. (At zero cost to themselves.)
2nd. Virtually no limitation plus fractional banking allows banks to create massive new Currency, blowing massive bubbles (housing/stocks) which devalues everyone's savings and work by raising all prices.
The fix ?
Stop all banks and financial institutions loaning out more than they have on deposit. Return legal currency creation to national treasury departments with a zero Inflation policy.
This will not create inflation like some bankers/economists would like to have you think. It is not WHO creates currency that drives the constant devaluation of your money & work, it is THE VOLUME per population and productivity.
The banks increased the base currency supply by over 45 % since March 2020. This is further multiplied by fractional banking. You can't spend it off planet, and we've had no increase in population or productivity. How can it not devalue our savings, wages and retirement funds by around 50% as it enters the economy ?
3rd. Fiat currency whether paper or digital has no intrinsic value, thus it cannot be used as a long term store of value, particularly in an ever expanding fiat system.
The fix ?
Return to constitutional Silver, Gold, Copper & Nickle currency, designated by weight not cents/dollars. These will find their own local value. These can't be printed to oblivion, have intrinsic value, and are a safeguard against selfish human nature. Continue to keep the manufacture of Gold & Silver rounds by private mints & foundries to help keep the government mints honest as to premiums.
Correct these 3 Principles and >80 % of a nation's problems would disappear. Do not allow your masters the Debt slave creator's to tell you it can't be done. It is easily done. Beware. The WEF wants you totally enslaved with digital currency.
Otherwise, prepare for destruction.
Seek to understand these 3 practices. Check on if I have stated them accurately for yourself. Then Print this out, and share, Tweet, post. Only we can save ourselves !
These 3 paragraphs can change the world and get you and your family out of endless peasantry and serfdom.
Says it like it is and he is often right
Omicron will kill us all.
Inflation will destroy the economy! Everyone needs to sell the stocks!!!!
why he invested in BaBa not the Chinese ticker 9988 ?
There has been crazy inflation in Japan but the official stats dont show this… that is why young people are committing syicide and dont have money to get their own home and start a family. The nation is dying
Invest in China more $GOTU stock. especially Chinese education. Great value! $GOTU
he knows it's fucked.
Wut? Diversity is not a strength?!!!! Who knew?!! Well, any non-retard. Stick a fork in it. The United Snakes is done.
"Diversity is our strength". The lie of the century is about to be exposed.
Based.
In other words, diversity is nobody's strength. It
“But but but diversity is our strength”
Well that was a big NothingBurger. A lot of words to say not much, and state the obvious about Japan.
Sounds like an ethno -nationalist.
A 98 y/o who can talk like this must have been a powerful voice in his younger days.
Diversity is a weakness, always has been throughout history. Unity is strength, which comes from cultural coherence and social cohesion. Japan has unity. The US has diversity delusion and race fetishism.
This guy is almost 100 years and his brain still works like a machine. On the other side Joe Biden looks terrible and he is 80.