Feb 6, 2017
Charlie Munger and Warren Buffett are two men that not only have
survived over time but made a boat load of money in the process.
They are not trend following traders, yet they are very keen about
risk management, position sizing and other core concepts that lead
to success. Munger and Buffet, however, perform a type of strategy
that you (as the average investor) cannot. They trade massive
derivative positions. Trades that only happen when you’re at their
level and can coordinate with the like Goldman Sachs. Buffett held
the power in 2008. He had the money and called the shots. Across
the media you can find hypocrisy in his statements, but the
ultimate measuring stick is money. Has he made money? Has he made
it generally in an ethically way? Absolutely.
This podcast and these excerpts aren’t about strategy. It is about
getting into the mindset of Munger and Buffett. Even though we
cannot replicate their strategy, we can take their philosophical
views and apply them to our money making strategies.
In this episode of Trend Following Radio:
- Psychological denial
- Incentive cause bias
- Pavlovian phenomenon
- Negative psychological tendencies
- Efficient market theory
- Contrast phenomena
- Envy bias
- What distorts judgment
- Tupperware parties
- Watch one, do one, teach one
- Compounding
- Avoiding credit cards at all costs