One of the last tips from Berkshire Hathaway Vice President Charlie Munger: Investors have a harder time getting rich these days – but it still works

In a conversation with Zoom boss Eric S. Yuan, Charlie Munger, ex-Vice Chairman of Berkshire Hathaway and long-time confidant of investor legend Warren Buffett, explained a few weeks before his death why it used to be easy to get rich and how younger generations did can still achieve success.

• Charlie Munger comes out as a Zoom fan
• More competition in the market
• Compare with poker game

Berkshire Vice President Charlie Munger: “I fell in love with Zoom”

The US software company Zoom gained particular fame at the beginning of the corona pandemic in spring 2020, when workers around the world were encouraged to limit their contacts to contain the virus and to work from home if possible. From one day to the next, numerous meetings that had previously taken place in person were now held online. Zoom came in handy, especially for companies that previously had no software for video calls. The service is available for all common operating systems – including mobile ones – or can be used via the Internet browser.

Charlie Munger, Vice Chairman of Warren Buffett’s investment company Berkshire Hathaway, also came out as a fan of the remote working tool in 2021. “I fell in love with Zoom,” he confessed in an interview with “CNBC” host Becky Quick. At the same time, the entrepreneur confirmed that the software solution would continue to exist well beyond the pandemic. “I think Zoom will prevail. It just offers so much convenience.”

Munger invited as a guest on “Zoomtopia”.

Accordingly, it should come as no surprise that Munger was invited as a guest at “Zoomtopia 2023”, the software developer’s conference, a few weeks before his death and had a final discussion with Zoom CEO Eric S. Yuan. At the event, Munger was also full of praise for the video call provider and explained that he had conducted most of his communication with Buffett over the phone but was now pleased with the technological advances. “I often use Zoom to do business from home,” said the entrepreneur. “We also have family Zooms and bring the whole family together. It’s as simple as pressing a few buttons to connect.”

Younger investors face different challenges

The conversation between Yuan and Munger not only covered the Berkshire vice president’s use of the service, but also revolved around the successes the entrepreneur has been able to celebrate in his life so far – and to what extent other investors can benefit from his experience. “I’m amazed that my life turned out as well as it did,” Munger summed up to the Zoom founder. “It took a long time to progress. Looking back, I have to say I’m glad it took this long because it was interesting.”

Nevertheless, the investor showed understanding for the challenges that young investors have to contend with today. “It will be harder for today’s generation to get rich because there is more competition,” he pointed out. Nevertheless, one should not be deterred by this gloomy assessment, as the entrepreneur continued. “But you have to keep getting better, otherwise you will lose. Try harder, work harder and you will do better,” was the advice from Buffett’s long-time confidant.

Health and moderation are key

In addition, Munger attaches great importance to health and moderation, he explained. “People who eat and drink a lot or are chain smokers don’t grow old,” the then 99-year-old warned the audience. But restraint can be worthwhile for more than just health reasons. When it comes to building wealth, it is also counterproductive to throw money out the window. “Spend less than you earn. It’s very simple,” said the Buffett partner. Munger’s simple but effective trick: save money, then invest it cleverly and save the resulting profit. Part of the savings can then be reinvested again.

Life is like a game of poker

You can also learn a lot for life from playing poker, as the former card game fan revealed in an interview. “In a game like poker, you have to know your opportunity costs. You have to be able to make a lot of bets that will make you a lot of money. And then not bet if there’s too much going against you,” said the billionaire. Just like in a card game, in life you have to be able to recognize which situations are successful and which should be avoided. “In poker, everyone is trying to mislead you, and the same goes for life. It’s easy to get addicted to playing against the odds, but you should only play poker if you’re one of the best at the table “, Munger recommended to the audience.

Editorial team finanzen.net

– On our own behalf –


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