Short Bio: Charlie Munger is a 95 years old investor and the Vice Chairman of Berkshire Hathaway.
Video duration: 23m51s
Charlie Munger on the merits of long-term investing:
"If you invest the way people gamble in
casinos you're not gonna do very well. So ,it's the long-term investment that works
best. But if you like the action of
investing and sometimes winning, sometimes losing, just like people like
the action when they gamble in a casino, those people are not my people. I like the long-term investors who
figure out something that's going to
work over the long term and buy that."
Charlie Munger highlights a paradox in Chinese behavior when it comes to investing in the markets and the desire to gamble:
"The Chinese do have a long attention
span and that is a hugely desirable
quality because you you're more likely
to get the right answer if you think
deeply and hard about a subject for a
long time and it's odd there's a group
of people who are so good at having a
long attention span like to gamble so
much which is quite counterproductive."
Interestingly, Munger considers the short-term market players as "gamblers":
"We have a view as to what
the intrinsic value is of what is being
traded and we only buy it when we think
it's worth more than we're paying so
we're trying to make a long-term
investment by waiting for something to
be under priced and then buying it
and we don't give a damn about all these
gamblers in the market."
