Charlie Munger - "I Finally Got Rich When I Understood THIS"

Charlie Munger - "I Finally Got Rich When I Understood THIS" https://youtu.be/N9AfOZjSEu4 Charlie Munger gives his best advice on long term wealth and getting rich in the process. He give out some examples from his own life after 98 years. The self made billionaire has plenty of experience with volatility in market and booms of busts of an economy. This is the third time that Warren and I have seen our holdings in Berkshire go down top to bottom by 50%. I think it's in the nature of long term shareholding with the normal vicissitudes and worldly outcomes in a market, the long term holder has is quoted valuing stock go down and buy, say, 50%. You can argue that if you're not willing to react with equanimity to a market price decline of 50% two or three times a century, you're not fit to be a common shareholder, and you deserve the mediocre result you're going to get compared to the people who do have the temperament, who can be more philosophical about these market fluctuations. You can never take all the boom and bust out of a capitalist economy, but they could be enormously dampened if there were wise legislative restraints on human conduct that eliminated more of the salmon folly that will inevitably come without the wiser strains. And what happened in America is that the people who were making money out of a lack of wiser strains just got more and more power by doing more and more lobbying and making larger and larger political contributions. I'm being aided by a certain ideological nuttiness which assumed that because free markets worked so well compared to, say, communism automatically followed, that if there were no laws at all restraining financial conduct, the economy would work better. And that's not so. The economy works worse if you allow unrestrained salmon, folly and finance that goes back all the way to the South Seas bubble without a system of wise restraints. Tyler Investing