The passing down of information….
That’s how our species survives – the exchange or passing down of knowledge either through DNA or through words – we are who we are because we have learned from the mistakes and successes of those who have come before us.
Our elders can teach us so much…
Though our egos may try to persuade us from listening to somebody that may seem “too old” or “out of touch,” one of the best things you can do when confronted with the opportunity to sit at the elbows of titans, is shut your mouth and open your ears.
For instance, what can we learn from a man who is quickly approaching 100 years old?
I guess it all depends on who that man is, right? Especially if that man sat at the right hand of one of the gods of investing and what he says could have an immediate impact on your finances…
Would you listen?
Of course you would…
You’d be crazy not too! The information you’d gather from just a few words could be invaluable!
Which makes anything Charlie Munger (long-time confidant and partner to Warren Buffett) has to say, just as important as anything that came out of E.F. Hutton’s mouth.
So when I came across a transcript of one of his recent talks I read with a purpose of learning – really picking out what he was trying to convey – and I picked out a few things that we can bring with us to the trading table.
The first thing that stood out right away was that Charlie admits that he and Warren had it easier than we do in today’s markets.
“We had an easier world. I don’t think you’re going to get the kind of results we got by just doing what we did.”
And he’s right…
While technology has advanced at an almost exponential rate, the problems that come with those advances also have to be dealt with.
The pathway to buying stock was a lot easier back in their prime – but took longer.
Back in the day, there were less hands in the pot… so while fees may have been higher during the 50’s and 60’s – there were less people taking a piece.
Not only that…
But being a player in an industry that was just starting to recover from the Crash of ’29 – gave them leverage, clout and connections to get things done quickly, and more importantly, quietly.
Nobody knew the moves that you were making because the information wasn’t wide open for the world to see.
So, what Warren and Charlie could do over a few drinks and couple of cigars has changed drastically.
And in Charlie’s eyes, one of the biggest hindrances to making money in today’s market – are all the hands in the pot.
Charlie openly criticized the fee structures that managers charge today – especially when their lack of success doesn’t justify the size of their fees.
“It’s so hard to get big advantages when buying securities, particularly when you’re doing it by the billion. And you add the burden of very high fees and think that by working hard and reading up on sell-side research, you’re going to do well. It’s delusional. It’s not good to face the world in a delusional way.”
What does that mean for us? How can we expect to succeed in the market when there’s not much we can do about the high fees we’re charged to buy and/or sell stock?
Well, I’ll be honest – what we’re doing here at GorillaTrades is part of the answer.
We have to be our OWN money mangers…
Our own fund managers…
We don’t need to let other people control our financial destinies – we don’t have to be part of a mainstream collective. We can be the gunslingers. They can sit in the saloon and do nothing.
We can get all the action ourselves.
When I first started GorillaTrades – this was precisely what I had in mind. I didn’t want to let other people make decisions for me that I could make myself… and do it better than they can.
GorillaTrades didn’t become a success overnight – it took me years to develop the GT investing matrix – countless hours of testing and re-testing…
I knew it worked – I just had to prove it.
Which I did when I took $250K and turned it into $5.5 million*…
But it seemed almost criminal to keep the GorillaTrades system a secret – yet the capitalist in me didn’t want to just give it away for free – which is how GorillaTrades was born.
We don’t depend on a bunch of people who charge high fees and think they know what they’re doing…
We get to make the decisions ourselves – and that’s a feeling you just can’t fake. I like being my own man – just as I’m sure you like being your own person. I’m the type of person who would rather die on his feet than live on his knees.
And if you’re reading this – I have a feeling that you are too.
So, what did we learn from Charlie? Well… the biggest take away I have is that if you’re on your own, making your own trades –well then, you’re doing it right!
And if you are looking for an opportunity to find better trades or simply improve your overall strategy, try GorillaTrades today and see just what it’s like to have a trader with decades of market experience in your corner!
In any event, thanks for the wisdom Charlie…
“I constantly see people rise in life who are not the smartest, sometimes not even the most diligent, but they are learning machines. They go to bed every night a little wiser than they were when they got up and boy does that help, particularly when you have a long run ahead of you.” – Charlie Munger
* Please note that this happened during the dot-com era, and Ken used both margin and options to leverage his account. This result is not typical and it would be very difficult to produce this type of return in the stock market today.