Turn Off the Noise Around You

Sep 1, 2013
J. Webster
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To invest like Charlie Munger, Warren Buffett’s partner, you need to basically turn off the TV, get off Twitter, open a book, and shut out all the sky is falling talk around you. And another thing that’s helpful to do is make investing not a sprint but a marathon: don’t feel like you have to keep up with everyone else around you. Instead, have a plan and stick to it that tunes everybody else out.

“Many money managers spend their days in meetings, riffling through emails, staring at stock-quote machines with financial television flickering in the background, while they obsess about beating the market. Mr. Munger and Mr. Buffett, on the other hand, “sit in a quiet room and read and think and talk to people on the phone,” says Shane Parrish, a money manager who edits Farnam Street, a compelling blog about decision making.

“By organizing their lives to tune out distractions and make fewer decisions,” he adds, Mr. Munger and Mr. Buffett “have tilted their odds toward making better decisions.”

Mr. Munger and Daily Journal haven’t disclosed which stocks he bought during the crisis, but Jacob Wolinsky of ValueWalk, an investing website, believes the largest position was in Wells Fargo, followed by U.S. Bancorp.” WSJ

Too often as an investor you get sucked into the fear going around that makes it seem like you should pull your money out right away. But as is often stated, when fear is high that’s probably when you should put your money in the market. And overall, it’s again about being able to hold on to your trades and right out the ugly times.

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