Charlie Munger Actually Likes Something!

Charlie Munger Actually Likes Something!

As far as curmudgeons go, Charlie Munger takes the cake.

Serving for decades as Warren Buffett’s vice-chairman at Berkshire Hathaway Munger has a reputation for hating everything.

Buffett has often joked about the fact that when he calls Charlie to discuss a possible investment for Berkshire the expected response is “no”. In the rare instances where Charlie says “yes” Buffett knows that he has found himself a really great idea.

At the 2018 Berkshire Hathaway Annual Meeting Charlie said “yes” to focusing your investment attention to China. Given how highly Buffett thinks of Charlie’s stamp of approval investors would be crazy not to listen to Munger’s advice.

Here is what he had to say at the meeting:

American investors are missing China. It just looks too hard, sitting in Omaha, to outsmart the Chinese market. But I think you’re absolutely right. It’s where they should be looking.”

On the Monday following the meeting Munger appeared on CNBC and expanded on why he is bullish on China.

Charlie Munger: Best companies in China are cheaper than best US companies from CNBC.

The best companies in China are cheaper than the best companies in the United States. I don’t think it would be all that hard for any smart person to find four or five great companies in China to invest in.”

Munger went on to say that his family is “substantially” invested in China, where they began investing 14 years ago.

Given the rarity of Charlie being bullish on anything I say it is time for us to sharpen our pencils and start turning over some Chinese rocks.