On May 4, 2012 Charles Munger, vice chair of Berkshire Hathaway seized the opportunity to market his book and his fund during an interview with the Jewish-run criminal media firm CNBC. After all, this is the only reason why Munger or anyone else you see in the media agrees to an interview.
As I have previously explained, even during the rare times the media interviews real experts, they are not likely to provide any real value, for if they did they would first expose the media as a large part of the problem.
But Munger did something you will rarely see. And it was by accident. During the following excerpt of this interview Munger slips up by biting the hand that feeds him when he stated that listening to the media would cause investors to lose their ass (paraphrased).
Notice that Munger stated that investors who tuned into CNN would not fare well. Clearly he meant CNBC and other media firms dedicated to the financial markets but he realized he could not say CNBC since he was being interviewed by them!
Listen carefully to the video below.
The take away points from this interview are obvious.
1) If you are an "ordinary" do-it-yourself investor (i.e. one who possesses average skills and insights) and you are actively trading you are going to lose because you won't be able to compete with financial institutions which control the markets.
2) If you are an "ordinary" do-it-yourself investor (i.e. one who possesses average skills and insights) and you are actively trading with the help of an ordinary stock broker or financial adviser, you're still going to lose because you won't be able to compete with financial institutions which control the markets.
3) If you don't know very much you should just buy an index.
4) If you're an "ordinary" do-it-yourself investor who listens to the media you're going to be a loser.
Folks, I have been making these points for many years.
If you're going to invest you need to do it right. That means you need to commit yourself to the process. And you need to enlist the assistance of exceptional talent. Otherwise, you're better off just buying index funds.
Restrictions Against Reproduction: No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the copyright owner and the Publisher.
These articles and commentaries cannot be reposted or used in any publications for which there is any revenue generated directly or indirectly. These articles cannot be used to enhance the viewer appeal of any website, including any ad revenue on the website, other than those sites for which specific written permission has been granted. Any such violations are unlawful and violators will be prosecuted in accordance with these laws.
Article 19 of the United Nations' Universal Declaration of Human Rights: Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers.
This publication (written, audio and video) represents the commentary and/or criticisms from Mike Stathis or other individuals affiliated with Mike Stathis or AVA Investment Analytics (referred to hereafter as the “author”). Therefore, the commentary and/or criticisms only serve as an opinion and therefore should not be taken to be factual representations, regardless of what might be stated in these commentaries/criticisms. There is always a possibility that the author has made one or more unintentional errors, misspoke, misinterpreted information, and/or excluded information which might have altered the commentary and/or criticisms. Hence, you are advised to conduct your own independent investigations so that you can form your own conclusions. We encourage the public to contact us if we have made any errors in statements or assumptions. We also encourage the public to contact us if we have left out relevant information which might alter our conclusions. We cannot promise a response, but we will consider all valid information.