Stick to Value Investing, Charlie Munger

By: Jeff Berwick | Sat, May 5, 2012
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While I am on strict orders from the doctor to never watch CNBC, for my mental health, I was forwarded a video of Charlie Munger on CNBC today where he stated, "gold is a great thing to sew onto your garments if you're a Jewish family in Vienna in 1939 but civilized people don't buy gold - they invest in productive businesses."

Where to begin?

Charlie and Warren are REALLY good... the BEST... at value investing in a highly inflationary fiat bull market environment. They hit the jackpot when just a few years after Buffett took control of Berkshire Hathaway the world was sent spiraling into a completely unbacked, global fiat currency system which almost guaranteed success for those with the right mindset. The rest, as they say was history.

Being very savvy value investors they rode the 30 year bull market enabled by this once-in-a-lifetime opportunity of illusory debt to its heights and were better at it than anyone, turning themselves and countless others into billionaires. However, the ride stopped after the tech bubble collapse in 2000 and things haven't been going so well since... even despite Warren doing sweetheart deals and cozying up to the fascist government like Whitney Houston to a bag of crack. Berkshire's performance against something as simple as real money has been abysmal:

Berkshire hathaway versus Gold

In the interview, Charlie states that he would rather invest in productive assets than gold. Here's where we can generally agree. Me too! I'm a younger, go-getter entrepreneur. I'd love to be investing in technologies and amazing, world-changing businesses more than anyone. But I can't. Not knowing what I know. Not knowing that all the socialist democratic western states are insolvent under any measure. Not knowing that because of that and because they all have fiat currencies which can be printed into oblivion to keep their show going just a few years longer will mean a complete collapse of the western monetary system. Not knowing that many governments, the US and the UK more than most, already are aware of this and are clamping down on liberties and arming their police forces to the teeth in preparation for the great collapse.

Bernanke: Let them eat cash

It's going to be hard for any company to succeed in this environment. That's why Berkshire has underperformed so much... they don't realize that all the apparatus of the fasco-communist US and the taxes, some of them even named after Warren Buffett himself, have hollowed out the economy to the point of collapse.

So, because of that, I cannot smartly invest in anything except the gold mining stocks which could go parabolic in the last few inflationary years before the collapse.

Charlie Munger says owning gold is "uncivilized". No, Charlie, what is uncivilized is this entire immoral system of theft and slavery (taxation) and the communist fashioned central banks that impoverish the people while paying for every major war in modern history. It is all in a state of collapse but he seems blissfully unaware. This entire collapse is brought on by the fasco-communist police state that he believes in. The collapse to come IS going to be uncivilized and it will be because of everything he believes in.

He says that gold is only useful "if you're a Jewish family in Vienna in 1939". But, he hasn't yet realized that Americans are the new Jews as dicktator Barack O'Bomber takes away their rights and claims the right to kill as many of them as he wishes. What'd you think those cash sniffing dogs and men and women hiding on the jetway to the airplane with badges around their neck asking how much cash you have are for, Charlie? Oh, maybe they don't have that for private jets... yet.

In the interview Charlie points out that one of their main skills is seeing changes in the world and adapting quickly to them. They appear to have missed the biggest change staring them right in the face.

They were warned long ago by a much, much greater man than both Charlie Munger and Warren Buffett... Warren's father, Howard Buffett who stated:

"I warn you that politicians of both parties will oppose the restoration of gold, although they may outwardly seemingly favor it, unless you are willing to surrender your children and your country to galloping inflation, war and slavery then this cause demands your support. For if human liberty is to survive in America, we must win the battle to restore honest money. There is no more important challenge facing us than this issue -- the restoration of your freedom to secure gold in exchange for the fruits of your labors."

Sadly Howard Buffett never lived to see the day his fasco-communist, idiot savant, brat of a son learn about freedom, liberty and not being a part of a criminal system. Our only hope is that both Charlie and Warren do live to see it.

 


If you believe gold is a barbarous relic then buy some Berkshire Hathaway. If you think Jeff may be on to something, subscribe to The Dollar Vigilante to hear more real-world thoughts about the ongoing collapse that people like Charlie Munger and Warrent Buffett are either too blind or too corrupt to see.

 


 

Jeff Berwick

Author: Jeff Berwick

Jeff Berwick
Chief Editor
The Dollar Vigilante

Jeff Berwick

Anarcho-Capitalist. Libertarian. Freedom fighter against mankind's two biggest enemies, the State and the Central Banks. Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast. Jeff is a prominent speaker at many of the world's freedom, investment and gold conferences as well as regularly in the media including CNBC, CNN and Fox Business.

Jeff's background in the financial markets dates back to his founding of Canada's largest financial website, Stockhouse.com, in 1994. In the late '90s the company expanded worldwide into 8 different countries and had 250 employees and a market capitalization of $240 million USD at the peak of the "tech bubble". To this day more than a million investors use Stockhouse.com for investment information every month.

Jeff was the CEO from 1994 until 2002 when he sold the company and still continued on as a director afterwards until 2007. Afterwards, Berwick went forth to live on and travel the world by sailboat but after one year of sailing his boat sank in a storm off the coast of El Salvador. After being saved clinging to his surfboard with nothing but a pair of surfing shorts left of all his material possessions he decided to "live nowhere" and travel the world as spontaneously as possible with one overarching goal: See and understand the world with his own eyes, not through the lens of the media.

He went on to visit nearly 100 countries over four years and did and saw things that no education could ever teach. He met and spoke with a plethora of amazing people, from self-made billionaires to some of the brightest minds in finance - as well as entrepreneurs from a broad range of backgrounds and locations from tech companies in southern China to resource developers in Mongolia, Thailand, Russia and Chile. He also read everything he could find on how the world really works... politically and financially. A pursuit he continues to this day.

He expatriated, long ago from his country of birth, Canada, and considers himself a citizen of the world. He has lived in numerous locales since including Los Angeles, Hong Kong, Bangkok and currently lives in Acapulco, Mexico and is building a home in Cafayate, Argentina. In essence, everything he writes about here for TDV he has done or is doing.

As well, during his travels, both real and virtual (through the internet), he met some amazing people who have a similar shared vision of what is currently going on in the world and enticed them to come aboard TDV and provide their own brand of analysis.

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TRUE MONEY SUPPLY

Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/