Wealth in Words

Warren Buffett and Bill Gates have referred to this individual as the smartest man they know. He may be best known for his book of witty remarks and sage advice called “Poor Charlie’s Almanac.” Of course, I am alluding to Charlie Munger. Munger is the long-time business partner of Warren Buffett . Together, this team has grown their conglomerate, Berkshire Hathaway, into one of the world’s most respected businesses. Below are some observations from “Charlie Munger: The Complete Investor” that should help you in your own financial , professional  and entrepreneurial journey . Solve Hard Problems by Using a Checklist Munger is a proponent for using checklists  to get your most important tasks done. He states that “I’m a great believer in solving hard problems by using a checklist. You need to get all the likely and unlikely answers before you; otherwise it’s easy to miss something important.” Similarly, Buffett has said that “if you haven’t written it down, you ...

A common question I receive is “What is a bull market and a bear market?” Contrary to initial thought these are not just cute names to inoculate something potentially hazardous to your wealth such as investing or trading. The use of bull and bear delineates disparate market environments. Simply put, asset prices go up in a bull market and trend down in a bear market. Defining a bull or bear market always depends on the time frame that one is referencing. It is possible for a market to be in a long-term bull and short-term bear or vice-versa.  In other words, understanding the time frame being analyzed is essential to understanding the implications from market perspective and putting it into action.  There are several heuristics that can be used to identify bull and bear markets, however no rule holds up perfectly every time. In my opinion, the simplest and easiest way for investors to ascertain the state of the markets is to look at the historical price action. Price data...