If Charlie Munger Thinks The Market Is Crazy… It’s NUTS!


Charlie Munger is the other half of the dynamic duo that runs the highly successful Berkshire Hathaway, abandoning Buffett for a moment and making his own predictions.

I know what you are trying to say without you saying it …

“What is your obsession with Sean, Berkshire / Buffett / Munger as a whole? Why talk about them so much?”

And to you, I say, “Why don’t you talk more about them?”

The simple fact is that these billions are billions. There is a reason.

They were at the forefront of almost every market blast before that happened and were able to survive some of the darkest days in Wall Street’s renowned bloody history.

why Do not Do I talk about them?

Warren Buffett and Charlie Munger may be in the 90’s, but these guys tend to put their fingers on the heartbeat of the world of making money. Ignoring what they say is a financial crisis.

I don’t do that … not against myself, and definitely not against you.

So when either of these two speaks, I will do my best to listen.

Forget that EF Hatton guy. These two always have my ears.

Charlie Munger’s story … we listen

That’s why when Charlie Munger talks about the incredibly volatile market that may be on our way, I pay close attention to what he says.

Unlike Buffett, Manger doesn’t chop up his words, and this is what he had to say about the future of our financial markets.

While speaking at the Hearts & Minds Investment Leaders Conference, Munger told the crowd that the market we operate today is “even more crazy than it was in the dot-com era.”

Crazy than the dot-com era?

If anyone remembers, then nuts.. A website with nothing behind it has become a Wall Street darling. And when everything was said and done, it dried many people high.

Early lending practices triggered the 2008 crisis, but the dot-com company’s enthusiasm undoubtedly affected the entire blunder.

This aversion to the uncontrollable growth of technology is expressed by Munger in words: There is no great company that can’t turn into a bad investment just by raising the price. “

Of course, traditionalist Munger pooped on cryptography, praised China’s expulsion of technology from its own country, and said it wanted blockchain technology to be “never invented.” ..

But the simple fact of the matter is that Charlie Munger everytime A contrarian, he may change the tone of cryptocurrencies as prices begin to fall.

But I myself am a contrarian, so I can understand his claim. Many people understand that they don’t want to invest in overvalued markets, even though they are feeling the crypto crisis.

So why not take a page out of Berkshire Hathaway’s book and find some plays that can float us until all the dust settles in the uncertainty of the future?

A contrarian play for prepared investors

Perhaps the important thing is to look for some bears that can reverse the course as soon as the rate starts to rise.

As long as humans survive, we can think of two industries that are always present: credit cards and communications.

For example, AT & T (T) has a very low score on the Green Zone Fortunes rating scale (Look at their score here).

They experienced some major failures in 2021. However, the company sold some small businesses, some real estate, and 30% DirecTV to streamline operations and free up large amounts of capital for 5G. Expansions that have the potential to be successful in the long run.

If interest rates start to rise, look for a bearish AT & T and rebound a bit.

Speaking of rebounds, another company where GZF is bearish is Mastercard Service (MA) (Look at their score here).

But some things are happening to them. In other words, the economic situation is uncertain.

Non-temporary inflation means that Mastercard’s 1 billion customers are paying more than they are paying in 40 years, and credit card spending should increase overall.

This isn’t great for Mastercard customers, but it may be good for investors. Jerome Powell I decided to trigger a rate hike.

These two plays come directly from Berkshire Hathaway’s Contrarian Investment Handbook …

I haven’t seen them recommending these companies, but the bottom line is that they fit the pattern of thinking of these people.

Of course I might be wrong, so take this with a grain of salt … but it’s nice to catch these guys with a rebound.

Again, neither Charlie Munger nor Warren Buffett know it all, but they know a lot and it’s not just boy scouts who are always ready.

But please mark my words. If you start thinking like them, you will be a better investor in it.

“Opportunities come to the prepared mind.” – Charlie Munger

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