원문 보기
you mentioned wearing a big bubble can you elaborate on that and how is this likely to play out when you print money on the scale what modern nations are printing it Japan the United States Europe Etc we're getting into new territory in terms of size today we're going to be talking about Charlie munger's recent comments on the state of the economy and what it means for us as investors for those who don't know Charlie Munger is the vice chairman of Berkshire Hathaway one of the largest and most successful investment firms in the world recently he spoke about how we may be in a big bubble and how printing money on the scale of modern Nations such as Japan the United States and Europe could lead to some serious trouble so let's break down what he means by a bubble in economics a bubble refers to a situation where the prices of assets such as stocks real estate or cryptocurrencies rise above their intrinsic value in other words the prices of these assets become disconnected from their underlying fundamentals such as the earnings of the companies or the value of the property Mueller's concern is that the government's massive stimulus spending which involves printing money to fund it could be inflating these asset prices beyond their true worth when the bubble bursts it could lead to a severe recession which could be much worse than the one we experienced after the 2008 financial crisis he points out that if the government continues to print money at such a high rate it could eventually cause terrible trouble we've seen this happen in other nations in the past where printing too much money leads to hyperinflation currency devaluation and economic collapse Munger does acknowledge that we may not be facing an imminent threat of disaster but we are certainly closer to it than we have been in the past inflation is a very serious subject you can argue it's the way democracies die and democracy dies in Latin America inflation is a big part of it so it's a huge danger if you overdo it too much you ruin your your civilization a lot the safe consumption for an investor is that or the next 100 years the currency is going to zero that's my working hypothesis he hopes that we don't experience a repeat of the 1970s recession where interest rates soared to 20 percent and the government was paying 15 interest on its bonds Mueller uses history to illustrate his point he notes that what brought in Hitler was the combination of the Weimar inflation where they utterly destroyed the savings of the middle class in Germany followed by the Great Depression what brought in Hitler was the combination of the Weimar inflation where the utterly destroyed the savings of the middle class in Germany followed by the Great Depression it was a one-two punch Mueller acknowledges that in modern democracies in the age of Keynes big government reaction is inevitable the government threw money at the problem however they probably overdid it a little throwing so much money so fast that it's hard for the restaurants to get people to do the work what impact does passive investing had on stock valuations oh huge that's another thing that's coming Munger also shared his concern about the impact of passive investing on stock valuations passive investing is a strategy that involves investing in a broad market index or exchange traded fund that is ETF that tracks a specific Index this approach seeks to match the returns of the market rather than trying to beat the market by picking individual stocks Munger believed that one possible concern is that passive investors may not be as active in monitoring the companies they invest in this lack of Engagement could lead to companies taking actions that benefit their shareholders but are harmful to society or the environment another concern is that passive investing may lead to overvaluation of certain stocks as more and more investors pour money into index funds the demand for stocks in the index increases and the prices of these stocks rise month acknowledges that the transfer of voting power to passive index funds is going to have a significant impact on the stock market he argues that the rise of passive investing has created a new group of Emperors the people who vote the shares in the index funds Mueller suggests that we could even make Larry Fink and the people of Vanguard the new popes Munger adds on a philosophical note talking about the Paradox of progress he notes that the last 200 years have seen a tremendous amount of progress with most of modernity coming in the last hundred years we have widely distributed electricity modern medicine the automobile the airplane the records the movies air conditioning in the South and racial inequities have been diminished however people are less happy about the State of Affairs than they were when things were way tougher the reason for this is Envy The World Is Not driven by greed but by Envy people take their progress for granted and the fact that somebody else has more now and they don't makes them unhappy before we delve into Charlie munger's next valuable advice make sure to hit that subscribe button right now Munger ends up by sharing his advice for individual investors about how to deal with the negative impact of inflation Munger suggests that investors should choose the least bad option available to them he states that choosing the least bad option is a common human decision-making strategy especially in challenging situations like inflation he also shares his personal portfolio of Investments which includes quality equities like Berkshire Costco Chinese stocks Daily Journal and apartment houses Monger disagrees with the popular notion that perfect diversification is necessary for investing instead He suggests that investors should focus on a few good assets Munger believes that having four good Investments is already a significant achievement and that having 20 good Investments is rare Monger believes that investing today is much more challenging than it was in the past he cites the high cost of owning property in desirable neighborhoods and predicts that income taxes will continue to rise therefore Munger advises investors to figure out their level of skill or their advisor's level of skill before investing and to have modest Ambitions when choosing their investments in conclusion munger's advice for individual investors to deal with inflation is to choose the least bad option and focus on a few good assets he also highlights the importance of figuring out your level of skill or your advisor's level of skill before investing investing today is much more challenging than it was in the past and investors should be prepared for the difficulties that lie ahead to everyone who finds the current investment climate hard and difficult and somewhat confusing I would say welcome to adult life thanks for tuning in if you have any thoughts or questions about the possibility and nature of a recession feel free to drop a comment below we'll catch you in the next video
Comments 0