Charlie Munger is one of the world’s most experienced investors, and has always thrived during stock market crashes and economic recessions. So in this video, let’s look at some of Charlie’s sage investing advice from the 2023 Daily Journal shareholder’s meeting, to decipher how we should be investing in the 2023 recession.
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★ ★ CONTENTS ★ ★
0:00 The 2023 Recession
1:14 Munger’s Thoughts on Rising Interest Rates
3:15 How to Invest During the Recession
4:17 Delayed Gratification
5:55 Staying Rational
7:25 Gambling in the Stock Market
8:35 Charlie Explains the Nature of Capitalism
9:41 Moats are Essential
10:55 Guy Spier on Re-evaluating your Portfolio
12:00 Investing in a Quality Business
13:38 Stay Honest
DISCLAIMER:
Neither New Money or Brandon van der Kolk are financial advisers. The information provided in this video is for general information only and should not be taken as professional advice. There are risks involved with stock market investing and consumers should not act upon the content or information found here without first seeking advice from an accountant, financial planner, lawyer or other professional. Consumers should always research companies individually and define a strategy before making decisions. Brandon van der Kolk and New Money are not liable for any loss incurred, arising from the use of, or reliance on, the information provided by this video.
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Charlie Munger: Investing During the 2023 Recession
Charlie Munger, the legendary investor and vice chairman of Berkshire Hathaway, is well known for his astute insights on investing. With the global economy facing the looming threat of the 2023 recession, Munger’s wisdom and experience can serve as a guiding light for investors looking to navigate these challenging times.
Munger, often referred to as Warren Buffett’s right-hand man, has consistently emphasized the importance of patience and long-term thinking when it comes to investing. He believes that market downturns, such as recessions, present a unique opportunity to deploy capital in undervalued assets.
During a recession, stock prices tend to decline as investors panic and sell off their holdings. This creates a buyer’s market for those with the foresight and discipline to take advantage of bargains. Munger advises investors to adopt a contrarian mindset and resist the urge to follow the herd.
In Munger’s view, one must possess a deep understanding of the companies in which they invest. He advocates for a concentrated portfolio of high-quality businesses, rather than spreading investments across a multitude of companies. During a recession, industries may suffer, but there will always be resilient companies that can weather the storm. Identifying these companies requires extensive research and a keen eye for value.
Furthermore, Munger stresses the importance of investing in businesses with enduring competitive advantages, or what he refers to as “economic moats.” These companies possess characteristics such as brand loyalty, intellectual property, or a dominant market position that set them apart from their competitors. Such firms have a higher likelihood of surviving and thriving even in the face of a recession.
Another key aspect of Munger’s investing strategy is to invest in companies led by competent and honest management teams. During a recession, the quality of a company’s leadership becomes even more critical. Leaders who can make tough decisions, adapt to changing market conditions, and allocate resources efficiently are more likely to steer their businesses through difficult times.
While Munger acknowledges that recessions can be challenging, he remains optimistic about the long-term prospects of the global economy. He advises investors to maintain a balanced perspective, understanding that recessions are a natural part of the economic cycle and eventually lead to recovery.
Moreover, Munger cautions against being influenced by short-term market volatility during a recession. Stock prices can be wildly unpredictable, and making investment decisions based on short-term fluctuations often results in poor outcomes. Instead, he advises investors to focus on analyzing the fundamentals of a company, its long-term growth potential, and the valuations relative to its intrinsic value.
In conclusion, Charlie Munger’s investing philosophy provides valuable insights for investors during the 2023 recession. Patience, contrarian thinking, a deep understanding of businesses, emphasis on economic moats, and the importance of strong leadership are some key principles Munger advocates. By applying these principles and adopting a long-term perspective, investors can position themselves to navigate the recession successfully and potentially uncover great investment opportunities along the way.
As an investing enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $745K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?
That bit about delayed gratification is gold. How do I get results from that right now though?
Nice cut at 2:04 to remove the word "democratic"
I wasn't financial free until my 30’s and I’m still in my 30’s, bought my third house already, earn on a monthly through passive income, and got 4 out of 5 goals, just hope it encourages someone's that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made.
12:37. Vintage Munger :).
Around 9 minutes Charlie was talking about 'imagine Kodak dying'. His point was, and he said, 'nothing lasts forever'. The point was everything was on its way out, it was just a delay as to when. Empires rise and fall, and new ones rise from the ashes.
.Major indexes have been so volatile lately. Even the small caps and mid caps have showed promise and jumped from time to time in short periods, I read an article of people that grossed profits up to $150k during this season, any recommendations to scale up such returns will be highly appreciated.
Great information: information is money.
Excellent vids.
When I hear self proclaimed investment gurus say things like "don't fight the Fed" I see a sucker with a short term perspective. Short term suckers driving short term market movements
Advise 1 – listen to none and trust none that is trying to sell you the key to making money, they are just stealing it from you
Advise 2 – invest in the market as a whole during a recession and throughout consistently. Investing on the market as a while saves you from unnecessary risks and speculation and guarantees a 11% profit as shown historically in the LONG TERM
Advise 3 – read some books on financing and educate yourselves
A financial professional you work with could really prepare you for life. I'm glad I was able to get in touch with my coach Jackson Sten Marsh earlier this year because I was actively cashing out from my portfolio and finally earned over 370k just in the first quarter while everyone else was complaining about the downturn. Jackson Sten Marsh. has assisted us in paying off our debt and saving for retirement.
not just rational,in electronics its paralel circuitry
The old codger slipped out a little fart at 8:51. It was quite loud through the headphones
While it's true that Charlie has seen a number of watershed events in his lifetime, the thing that's different in today's climate is the government against the people.
Delayed gratification is so true. My wife and I were last to get cell phones and large screen TV's on our family.
Might have been a kid during the great depression? You didn't check?
I realized that the secret to making a million is making better investment. I always tell myself you don't need that new car or that vacation just yet and that mindset helps me make more money investing.
Would it be reasonable to start putting away cash for this upcoming downturn and get in in a large quantity when it comes?
Excellent video.great points. I especially like the simplicity of the way to look at a company and the comments on denial. I’ve been victim of my own denial several times.
If delayed gratification is one of life’s top life hacks, then irrational fear is one of life’s stumbling blocks
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I really enjoy your channel but it seems to be a lot of the same messages lately – Warren and Charlie saying buy good businesses and hold long term. I would love to hear more of your own opinions that might be different from things that buffet and munger have said given he makes very generic statements for his very wide audience.
Invest more into Alibaba that you advice in 160 and now is about 80
Roughly £80k in my portfolio are in tech/TSLA stocks, can I get an advice on any other stocks that I can acquire to diversify my reserve across multiple markets while creating a comprehensive portfolio allocation that balances my concerns of risk aversion and returns that meet yearly inflation.
This is why I like low cost ETF’s. They follow indexes and add/remove companies automatically. As companies grow or collapse, the ETF’s change the weighting accordingly for us. Hope it works out for us in the long run
Well done on your presentation
strange, he speaks with India sd
Channels make mistakes like this. Those successful people are in different situation than new investors the way they think is different they are not that hard with their brain the easy because they in the position like that compared to normal people who make differents in buying power which matters alot
My boy can see all of jupiter's moons with those glasses
To combat the negative effect of inflation, it’s a good idea to diversify your portfolio across different asset classes, such as stocks, bonds, and real estate, since this can help protect your portfolio against inflation. I’ve heard testimonies of people accruing over $550k during recessions
Everything I did in the past two years of investing is losing my money, but that's okay I guess. I still believe that those companies will rise one day.
Great advice, just lock your money in and don't ever use or touch it for a long decade plus time line. If we all live to 180 like him we'll all be billionaires.