Summary: Charlie Munger E-Book

BusinessNews Publishing

• Herausgeber: Business Book Summaries
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 33

Veröffentlichungsjahr: 2016

Beschreibung

The must-read summary of Tren Griffin’s book: “Charlie Munger: The Complete Investor”.

This complete summary of the ideas from Tren Griffin’s book “Charlie Munger" gives an insight into the mind of Charlie Munger, one of the world's most successful investors and Warren Buffet's long-term partner. The author explains the three elements that compose the framework used by Munger when making investments; principles, the "right stuff" and variables. This summary will give you the techniques used by one of the best in the industry so that you can achieve your own success.

Added-value of this summary:
• Save time
• Understand the key principles
• Expand your business knowledge

To learn more, read “Charlie Munger” and find out how you can become a successful investor by following one simple framework.

Leseprobe

Book Presentation: Charlie Munger by Tren Griffin

Summary of Charlie Munger (Tren Griffin)

Book Presentation: Charlie Munger by Tren Griffin

Book Abstract

MAIN IDEA

Charlie Munger is one of the world's most successful investors. He is Warren Buffett's long-term partner and exactly one-half of the Berkshire Hathaway senior management team.

Like Warren Buffett, Munger was born and raised in Omaha, Nebraska where he still lives. Charlie Munger studied mathematics at the University of Michigan and then served as a meteorologist in the US Army during World War II. After the war, he studied law at Harvard Law School and upon graduation formed a law firm with a few partners which would ultimately become one of the nation's most prestigious legal practices. Despite that success, Munger left the legal profession to become a full-time investor at the urging of Warren Buffett who he met in California. From 1962 to 1975, Charlie Munger ran an investment partnership which generated 20-percent annual returns compared to 5-percent growth in the Dow Jones over the same time period.

So what is the secret of Charlie Munger's success as an investor? He and Warren Buffett both use a reasonably simple framework for thinking which has three elements:

Principles – Munger and Buffett are well-known advocates of the Graham value investing system.The Right Stuff – Munger and Buffett always try and take the emotion out of their investment decisions and act rationally and dispassionately.Variables – Munger and Buffett always add in their unique take on events as an integral part of their investment strategy.

About the Author

TREN GRIFFIN is a senior manager at Microsoft where he deals in strategy, competitive analysis and business development. He was previously a partner at Eagle River, a private equity firm controlled by Craig McCaw. He has also worked as a senior director with US West New Vector Group and as a business consultant in Korea, Australia and other Asian countries. He is the author of several books including The Global Negotiator and Korea: The Tiger Economy. Tren Griffin is a graduate of the University of Washington and Boston College.

The author's blog site is at: 25iq/author/trengriffin

Important Note About This Ebook

This is a summary and not a critique or a review of the book. It does not offer judgment or opinion on the content of the book. This summary may not be organized chapter-wise but is an overview of the main ideas, view points and arguments from the book as a whole. This means that the organization of this summary is not a representation of the book.

Summary of Charlie Munger (Tren Griffin)

1. Principles

Charlie Munger and Warren Buffett are probably the world's best-known and likely the world's most successful users of the value investing approach first advocated by Ben Graham. They adhere religiously to the four value investing principles and this is the central pillar of everything they do. You can't understand why they do what they do without understanding the Graham value investing fundamentals.

"The best thing a human being can do is help another human being know more."

– Charlie Munger

To appreciate and decode how Charlie Munger invests, you first have to understand the four principles of value investing as coined by business professor Ben Graham:

"Ben Graham was trying to invent a system anybody could use. Understanding how to be a good investor makes you a better business manager and vice versa."

– Charlie Munger

Principle 1. Treat a share of stock like proportional ownership of the overall business

Another way of stating this principle is to say if you don't understand what the business does, then you cannot genuinely value the business and you should not invest in it. Rather than treating stock like a separate entity, approach any valuation exercise like you're planning to buy the business outright in a private transaction. Figure out the intrinsic value of the enterprise and know how you got that number.