Charles Munger Accidentally Slips Up and Admits the Media Causes Investors to Lose Their Ass

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.