The world according to Charles Munger
The world according to Charles Munger.
Why are bankers like heroin addicts? Why is the USA unlike Japan? Why does QE concern Charlie Munger? Are Greek’s built for capitalism? If Charlie Munger was running US healthcare how would you fare?
For a true insight into just how long-term Charlie and Warren think at Berkshire Hathaway, this CNBC interview with Charlie Munger from Friday 3 May 2013 is your antidote to the “legalised front running” of High Frequency Trading.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Chris B
:
Charlie is fantastic, I find it hard to disagree with him. I learn things from him every time I hear him speak.
Charlie likes this journalist, she’s interviewed him a few times, I like her too.
It was interesting when Charlie said he remembered the Great Depression and no-one had any extra money, and this happened year after year after year. It took decades for the sharemarket to pick up after the Great Depression. Thesedays, with an aging population, I think that is what the government are worried about. Just like what has happened in Japan for the last 20 years! That is why they find it hard to stop this QE drug.
Greenspan and US Congress helped cause the sub prime crisis, they allowed these crazy loans when people had no income and were allowed to get the loans. And Greenspan admitted it was a big mistake. This is totally free market like what Thatcher was for. More Friedman economics as opposed to Keynesian economics which wants QE when it is needed.
What we have learned from the Great Depression is the QE and monetary policy control is a must in bad times.
I think most economists agree that QE does help in a depression.
Thatcher’s influence in Australia has been quite large. Both the Labour and Liberal parties agree that she had great influence. The deregulation of the financial system as well as the floating of companies like CBA and Telstra in the 80’s was influenced by what Thatcher was doing in England. And I believe it has been successful. However, I beleive Thatcher’s ideas don’t hold up in a recession when monetary policy must be carefully controlled. Keynesian economics is making a comeback.
Charlie loves social security and so am I. People with mental illness and physical illness don’t have to do illegal things to survive. It takes away the poverty. It takes away desperation. It takes away some crime. And it is the right thing to do for these people with problems that can’t get a job.
What I hate about Tony Abbott is that he curses Labour for running a deficit. He talks doom and gloom all the time. Australia is doing pretty well. The recession of 2008 could possibly have been a Great Depression. It was BAD. You had to run a deficit to stimulate the economy. Any government running a surplus during that recession is just stupid. Australia is a growing country, small yearly deficits are not a problem, we need to build a lot of infrastructure for a country that will have 50% more ie 30m people by 2050. If you want to see real debt, look at Japan, USA, Greece etc. Not Australia. But the Liberals are talking about how bad the debt is. No, its not bad at all as long as we don’t run it every year. Howard ran surpluses because he rode the mining boom the whole time he was in government. Look at the miners profits going down in the last 4 years. Incidently, I am voting Liberal.
Nir Halevi
:
Such a pleasure to listen to this a clever man. Very good.
Kelvin Ng
:
Hi Roger, what is your take on the implications of the discussion on insurance for QBE starting at 14.36?
Thanks.
Kind regards,
Kelvin
Roger Montgomery
:
Hi Kelvin,
We’re taking a good look at the changes as they impact QBE and the changes at QBE.
Julian Watt
:
I’m (pleasantly) surprised at how much Charlie favours regulation
Garry
:
Thanks very much for making the effort to share this insight along with the
many other informative and interesting ones you have posted. Much appreciated. Keep them coming.
Roger Montgomery
:
WIll do Garry. Thanks!