Collection: Charlie Munger - #60 'Investment on Wells Fargo and Real Estate'


Video Link: https://youtu.be/R3b6cAwketY


In this episode, Charlie Munger was asked why did he buy Wells Fargo in March of 2009 instead of October of 2008? And what made him decide to buy real estate in the recent years?


In this episode, you’ll learn:

  • Why Charlie Munger invest in Wells Fargo?

  • Why Charlie Munger bought real estate?

  • The phrase "It seemed like a good idea at that time."

To check out all Collection: Charlie Munger <click here>

[Transcript]

(Source: https://youtu.be/X1Oi3esiry8)

AUDIENCE MEMBER 00:08

In October 2008, a month after Lehman filed bankruptcy and in the depths of the abyss, Mr. Buffett famously wrote an editorial saying that he was buying stocks and he was bullish on America. You’re famous for bottom ticking Wells Fargo in March of 2009. What made you decide to buy Wells Fargo in March of 2009 instead of October of 2008?


CHARLIE MUNGER 00:31

Well I had the money in the later period. And the stock was cheaper. Those are two very important parts of the purchase.


AUDIENCE MEMBER 00:46

I’ve heard that you started some new real estate developments. What are you developing now and what’s going to be the key to its success?


CHARLIE MUNGER 00:59

I didn't catch that either.


AUDIENCE MEMBER 01:02

You hear me?


CHARLIE MUNGER 01:03

Real estate development –


AUDIENCE MEMBER 01:05

Yeah, you started some new real estate development?


CHARLIE MUNGER 01:08

No I bought some apartment houses –


AUDIENCE MEMBER 01:09

Oh, apartment houses.


CHARLIE MUNGER 01:11

For my grandchildren.


AUDIENCE MEMBER 01:15

How about building an idea?


CHARLIE MUNGER 01:16

It seemed like a good idea at the time.


AUDIENCE MEMBER 01:18

What's the key to their success then? The apartment houses doing well.


CHARLIE MUNGER 01:23

By the way that phrase, ‘It seemed like a good idea at the time.’, came to me from a man I knew many years ago. In five minutes between trains he managed to conceive an illegitimate child by somebody he met in the bar car. (Laughter)


And my father was asked by the young man’s father, he had a nice wife and three children, “What the hell were you thinking about?” And you know what the young man said? “It seemed like a good idea at the time.” (Laughter)

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