Highlights of Webinar by Mr Vallabh Bhansali

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TradingFunda

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Very interesting and philosophical session, where he describes learnings from Charlie Munger's life.

Charlie Munger:
  • Our wisdom is simple, people dont like simple wisdom though.
  • We also make mistakes, but we make smaller ones, that does not sink us.
  • Dont be a one legged men in a kicking competition
  • Everyone wants to be Rich, famous and Happy. Become deserving of what you desire. You will get what u want.
  • Be prepased: Prepare yourself such nothing can sink you. Munger got divorced at 30, lost a son to cancer soon and lost a eye - but he was prepared for anything in life.
  • Berkshire is sitting on cash of 137 Bn of 450 bn balance sheet. This is called preparedness for any crisis / right opportunity.
  • Goldman - The smartest people in the world - had to give the best deal in the world at the bottom of a cycle to Berkshire - with huge upside and downside protection. This is called preparedness.

Good behaviour: Accept what nature as given you. If u are 5 2", accept it. You can do much better in 1000 other things than trying to excel in basketball.

Be Reliable: Whole of Ramanyan is centered around Pran jay pan vachan na jay. Being reliable under all circumstances matters the most.

Be simple - Buffet stays in the same house for last 50 years. They have same corporate office since so many years, with only 25 people.

Be informed: Charlie Munger reads extensively, even with one eye, to remove ignorance even at the age of 96.

Margin of safety: Don't do anything without margin of safety..

Power of compounding is the most powerful concept of investments.

Distinguish between activity and progress

Emotional training
- Dont self pity or give excuses.​
- Dont Envy - that's the biggest mistake of investmenting.​
- Resenment - Never resent anything​
- Avoid self serving bias.​

Lastly, he compares Warren Buffet and Charlie Munger with modern day Rishis - who sees reality without biases, without greed or fear, without pain or excitement, without envy or resentments, are prepared for any eventualities, live simple life and follow discipline.
 
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