A Simple Investing Tip Taught By Charlie Munger | Exploring Markets

A Simple Investing Tip Taught By Charlie Munger

Here's a quick secret from Charlie Munger. It's about buying stocks with patience. It's about waiting rather than joining in.

In 2014, Munger had a private meeting with Wall Street journalist Jason Zweig. Several incredible insights emerged from their talk. But one comment really stood out.

The tendency for most people is to simply buy stocks. At any given moment. But that's not what Munger does. He actually has a secret for you. But it requires you to sit on your hands and wait... and wait... and wait... It's why he and Warren Buffett bought Wells Fargo at $8 share in 2009 and investing $5 billion into Goldman Sachs during the Financial Crisis:
"One person said to me, ‘I have a list of 300 potentially attractive stocks, and I constantly watch them, waiting for just one of them to become cheap enough to buy.’ Well, that’s a reasonable thing to do. But how many people have that kind of discipline? Not one in 100." 
"It’s waiting that helps you as an investor, and a lot of people just can’t stand to wait. If you didn’t get the deferred-gratification gene, you’ve got to work very hard to overcome that." - Charlie Munger
Here's a thought experiment to think about, or even potentially something to test: what if you had $100,000 and only invested that money during market crashes? Imagine how much that would all be worth today. But do you have the patience to wait 25, 50, or 75 years to buy only during major crashes?