Last Update: August 2021.

~ Hearken to the wisdom of Charlie Munger ~

Traders,

Charlie Munger is Warren Buffett’s partner in crime at Berkshire Hathaway. At 97 years old, he’s still sharp as a whip and unafraid to throw shade at the rampant speculation surrounding Tesla and Bitcoin. We’ll leave those comments for another day.

I was reading Morgan Housel’s book The Psychology of Money the other day and came across this Munger quote:

“The first rule of compounding is to never interrupt it unnecessarily.”

Charlie Munger

Go look at any chart illustrating the power of compounding and you’ll notice the steepest part of the hockey stick takes place on the far right of the graph. To get to the far right of the graph, you must last. Patience is required. A willingness to see your portfolio value rise, fall, and rise anew is required. You can’t get blown out or abandon ship every time the market has a correction.

Otherwise, you interrupt the compounding.

#TeamTackle

Chart of the Day

Net Worth of Warren Buffett

Video of the day

Buffett & Munger: Compound Interest

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