MICHEL PIREU: Learn from Charlie Munger, but take his advice with a pinch of salt
Berkshire Hathaway vice-chair is an investment genius — which is why we mere mortals should sometimes look the other way
“It shows how hard it is to be rational on something very simple,” said Charlie Munger at 2019’s Daily Journal annual meeting. “How many kind of crazy ideas people have that don’t work, and you don’t even know why they don’t work even though it’s perfectly obvious if you’ve been properly educated. And, by the way, my definition of being properly educated is being right when the professor is wrong. Anybody can spit back what the professor tells you. The trick is to know when he’s right and when he’s wrong. That’s the properly educated person.”
But while there are not too many people in this world, either now or in the past, who have had more investing success than Munger, as with the professors it’s important to know when he is wrong. There are a number of occasions when Munger’s ideas should be rejected, such as when it comes to:..
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