Author Topic: Daily Journal 2019  (Read 7473 times)

BG2008

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Re: Daily Journal 2019
« Reply #30 on: February 15, 2019, 08:20:58 PM »
Q: Given that you've been partners for many years, why is Warren Buffett so much richer than you are?

Charlie: Well, he got an earlier start, he worked harder and is probably smarter than I am. ..pause..  Why was Albert Einstein poorer than I was?

Munger spends money, he donates money, he spends it on a yacht

http://channelcatcharters.com/

Can you imagine Munger smoking a cigar and saying "yea, bitches!" with models in bikinis dancing around him?  Yes, I can. 



Charlie

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Re: Daily Journal 2019
« Reply #31 on: February 18, 2019, 07:56:32 AM »
Some great quotes:

FEES ARE A BIG TOLL

“People don’t realise, because they’re so mathematically illiterate, is that if you make five per cent and pay two of it to your advisers, you’re not losing 40 percent of your future. You’re losing 90 percent because over a long period of time that little difference becomes a 90 percent disadvantage to you. So it’s hugely important for somebody who is a long term holder not to be paying a big annual toll out of performance.”


DIVERSIFICATION VS. EXCELLENCE

“The whole idea of [wide] diversification when you’re looking for excellence is totally ridiculous. It doesn’t work. It gives you an impossible task. What fun is it to do an impossible task over and over again?”


https://vintagevalueinvesting.com/daily-journal-meeting-notes-2019/

longtermdave

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Re: Daily Journal 2019
« Reply #32 on: February 19, 2019, 10:29:34 AM »
I agree with him that fees are a big toll, but I think he's exaggerating a bit with that 90% loss. I can't get the numbers to work, even playing with taxes, churn, inflation, and assuming someone invests at day zero and lives to 100 years old. Can anyone else get to that number?


Some great quotes:

FEES ARE A BIG TOLL

“People don’t realise, because they’re so mathematically illiterate, is that if you make five per cent and pay two of it to your advisers, you’re not losing 40 percent of your future. You’re losing 90 percent because over a long period of time that little difference becomes a 90 percent disadvantage to you. So it’s hugely important for somebody who is a long term holder not to be paying a big annual toll out of performance.”


DIVERSIFICATION VS. EXCELLENCE

“The whole idea of [wide] diversification when you’re looking for excellence is totally ridiculous. It doesn’t work. It gives you an impossible task. What fun is it to do an impossible task over and over again?”


https://vintagevalueinvesting.com/daily-journal-meeting-notes-2019/

Rod

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Re: Daily Journal 2019
« Reply #33 on: February 19, 2019, 11:00:30 AM »
I couldn't figure out the 90% either--unless you invest for 120 years.

Jurgis

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Re: Daily Journal 2019
« Reply #34 on: February 19, 2019, 12:38:14 PM »
I couldn't figure out the 90% either--unless you invest for 120 years.

$1 at 5% return in 100 years = 131.50
$1 at 3% return in 100 years = 19.22
"Before you can be rich, you must be poor." - Nef Anyo
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nickenumbers

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Re: Daily Journal 2019
« Reply #35 on: February 19, 2019, 01:34:33 PM »
Q: Given that you've been partners for many years, why is Warren Buffett so much richer than you are?

Charlie: Well, he got an earlier start, he worked harder and is probably smarter than I am. ..pause..  Why was Albert Einstein poorer than I was?


Q: Given that you've been partners for many years, why is Warren Buffett so much richer than you are?

A:  Charlie: Well, he got an earlier start, he worked harder and is probably smarter than I am. ..pause..


<<95 yr old Charlie Munger Translation>>

A:  You got jokes, youngster?
A:  Why was Albert Einstein poorer than I was???    BIA-CHHhhh.....!

The fastest Cheetah still waits for the lame baby antelope.  ..patience..

nickenumbers

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Re: Daily Journal 2019
« Reply #36 on: February 22, 2019, 11:18:49 AM »
All,

It seems like Munger often doesn't brag on his kids, or he might not be super proud of them.  He said it again in this talk that temperaments are not taught, or some such thing like his kids are not the same as him..  I forget the comment, but it is not complementary.  He rarely makes positive comments about his kids.

Why?


In what I have read he has said that one son is like a Rocket Scientist, and his daughter is a Lawyer in LA. 
The fastest Cheetah still waits for the lame baby antelope.  ..patience..

cubsfan

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Re: Daily Journal 2019
« Reply #37 on: February 22, 2019, 03:26:10 PM »
All,

It seems like Munger often doesn't brag on his kids, or he might not be super proud of them.  He said it again in this talk that temperaments are not taught, or some such thing like his kids are not the same as him..  I forget the comment, but it is not complementary.  He rarely makes positive comments about his kids.

Why?


In what I have read he has said that one son is like a Rocket Scientist, and his daughter is a Lawyer in LA.

Well, there are 7 of them, so maybe they all are not perfect. I do think his daughter, Molly is quite accomplished.

merkhet

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Re: Daily Journal 2019
« Reply #38 on: February 22, 2019, 04:07:09 PM »
He has bragged about them in the past. In particular, Molly apparently bought a house for a friend who was a victim of spousal abuse. The friend didn’t really have a vocation, but she had the courage to pack up and take the kids away from that situation. Munger praised Molly for buying a house and letting the friend live there. (Paraphrased) “We’re rich. What do we need the extra income for? And this was the right thing to do. It’s exactly how someone rich should behave.”

Grenville

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Re: Daily Journal 2019
« Reply #39 on: February 22, 2019, 04:34:14 PM »
He has bragged about them in the past. In particular, Molly apparently bought a house for a friend who was a victim of spousal abuse. The friend didn’t really have a vocation, but she had the courage to pack up and take the kids away from that situation. Munger praised Molly for buying a house and letting the friend live there. (Paraphrased) “We’re rich. What do we need the extra income for? And this was the right thing to do. It’s exactly how someone rich should behave.”

Thanks for sharing that anecdote. I hadn't heard it before!