Collection: Charlie Munger - #209 'Munger's Way to Wealth'

[Transcript]

BECKY QUICK 00:00

Do you think it’s an uneven playing field right now? The Russell 2000 is more than 15% off its all-time high right now. It’s had a pretty rough go, especially in recent months.

CHARLIE MUNGER 00:09

If you start to think about it, my way in life was not predicting little short-term differences between the Russell index and the Standard and Poor’s index.

I don’t have any opinion about which index is better at any given time. I never even think about it. I’m always just looking for something that’s good enough to put Munger money in, or Berkshire money in, or Daily Journal money in.

And I figure that I want to swim as well as I can against the tides. I’m not trying to predict the tides. I expect to be suffering in the –

BECKY QUICK 00:54

Oh, go ahead.

CHARLIE MUNGER 00:57

Well, if you’re gonna invest in stocks for the long term, or real estate, of course there are going to be periods when there’s a lot of agony and other periods when there’s a boom. And I think you just have to learn to live through them.

Kipling said: “treat those two impostors just the same.” You have to deal with daylight and night. Does that bother you very much? No.

Sometimes it’s night and sometimes it’s daylight. Sometimes there’s a boom and sometimes there’s a bust. I'm just – I believe in doing as well as you can and keep going as long as they let you.

(Source: https://youtu.be/8RxLj9OVqLo)

---

[YAPSS Takeaway]

"Sometimes it’s night and sometimes it’s daylight. Sometimes there’s a boom and sometimes there’s a bust. I believe in doing as well as you can and keep going as long as they let you." ~Charlie Munger

Don't predict the tides, just learn to swim well and keep swimming.