Family.
Munger: Yes, that’s a job arranged by the army, the air force.
Sabrina: Yes. Then you went to Harvard Law School, and then you became one of the best investors of our time. Your investment performance is very good. I remember that your investment income was three times the market income for 14 consecutive years. How do you make investment decisions?
Munger: My decision-making system is very simple, which I call “systematic perversion.” What I did was to remove the stupid part of traditional thinking, and then I got “uncommon sense”. Most people use traditional thinking, not “uncommon sense”, so my method of operation is to avoid stupidity. I don’t succeed every time, but my winning rate is higher than most people.
Fourth, a good opportunity looks like a winning chance
Sabrina:Stewart, you are very famous for identifying good transactions. What is a good deal like?
Stewart: My idea is simple. People usually pay close attention to the company’s history when acquiring a company, but I think history is worthy of attention only when it has an impact on the future. So I will study the future and consider what technology or special things I can bring to this company that can make this company different. Then there is diligence and hard work, and execution is also very important. Others may think that execution is more important than strategy, but I think strategy is more important than execution.
In short, you need to find a suitable asset, transform it, and be patient. This is common sense to me, but unfortunately no one else knows it.
Munger: There are very few opportunities in a person’s life, and life is like that. If the good opportunities in life are precious, then the best way is to hurry up and grab a large piece of your own cake when it’s your turn. I am very good at this.
Sabrina: What is a good opportunity?
Munger: I know what Eli would say.
Richard: But I won’t ask you. Our argument is, should people spend most of their money on charity, or should they spend most of their money on job creation? What do you think?
Sabrina: If money is used to create jobs, it will make the economy work. Spending money in this way can make more money.
Richard: Great. Charlie, what would Eli say?
Munger: I think someone as rich as Eli would find this question difficult to answer.
Sabrina: Eli really invested a lot in charity.
Munger: Yes, but…
Richard: All of us have invested a lot of money in charity, which is great.
Munger: There is one more problem, all of us will ultimately not be able to take the money with us.
Richard: You won’t, Charlie.
Munger: If the money will leave me sooner or later, how much did I actually donate? I don’t think I know.
Sabrina: Stewart, do you have any views on the debate about the gap between rich and poor and the defense of the rich?
Stewart: Yes, I am very concerned about the widening gap between the rich and the poor. I have heard a joke, why does the socialist road not work? Because in the end you spend all other people’s money.
But I think our society does have certain distortions. For example, the existence of various luxury goods shows that the gap between the rich and the poor is huge, and some people are too rich. If the rich reinvest the money, they can set up businesses and creategb(153, 153, 153);”>Smart Investor” based on an internal interview video of Munger and Dr Sabrina Kay, compiled by listening and translating)