Emilie Munger Ogden ?

I have done this site especially for Emilie Munger Ogden
in order to visit thishousewillexist.org

Sorry for my poor english translation.



Charlie Munger (born 1 January 1924 in Omaha, Nebraska), the main business partner of the investor Warren Buffett at Berkshire Hathaway. A lawyer by training (Harvard), he is also in favor of a philosophical approach to multi-disciplinary in business (the idea is to dig into the fundamentals of science to be a better businessman). As already mentioned Warren Buffett, Charlie Munger does not succeed him at the helm of Berkshire Hathaway (he is older and less interested in the daily management of Berkshire Hathaway).

-

The stock market crisis as seen by Charles Munger
by Philippe Béchade
Friday, February 26, 2010

? We love the parables ... and editors of The Daily Reckoning form a real team. If you were not quite convinced, here's the proof.

Bill Bonner evoked Thursday a modern fairy tale written by Charles Munger, the discrete right-hand man of Warren Buffett and published by Slate Magazine. Bill had failed to go after her after reading one of these temporary concerns that Internet has the secret ... But hours later, the link was repaired and I can take over - finally the keyboard instead ... but the expression is less glamorous - and you tell the end of the story.

Just a quick summary of the previous episode before tackling the most modern picaresque fable. Europeans discovered four centuries ago, across the Atlantic Ocean, a wilderness island and provided with all natural and organic with an enterprising civilization imaginable - except oil and gas ... a detail that is important.

Educated about their past mistakes, the people of Europe who decided to settle on this island, called Basicland, instituted a democratic government. It was the guarantor of private property and security of citizens, and encouraged individual initiatives and savings. Virtuous principles that enabled the New World became surprisingly successful, to have a sound currency and a reputation as a reliable business partner.

With the increase of wealth came the comfort and idleness. Basicland many citizens began to regularly attend the casinos to furnish their spare time ... but as if by magic - and because time is money - they began to earn a fortune, instead of losing them as the Old Continent. Thanks to martingale-based derivative products that allow people to play poker are much greater than what you have in your pocket.

You assume a bit hastily that casinos would soon go bankrupt in this regime ... But this overlooks the fact that it is possible to manufacture chips almost to infinity, they retain a theoretical value as all players do not go at once to the cashier to turn them into hard cash .

-> Site for Emilie Munger Ogden, Wendy Munger, Molly Munger, Barry A. Munger, Philip R. Munger

So many players had become virtually so rich they could not bring home the wealth ... then leave all their stacks in a box with their name on site to return to try their luck at blackjack the next day.

? Citizens of Basicland realized quickly that we got rich very quickly by focusing its money through derivatives in the casino miracle by producing something that people need. It did not wait very long before the casinos weigh 25% of the GDP of the island ... and dealers, handsomely paid for their services providers strange land on the poker tables, earning no less than 22% of the wealth produced annually by all employees in the country!

While exports of goods and services accounted for 25% of GDP before the casinos do begin to multiply on Basicland, this figure dropped to 10%. Oil imports - whose players were big consumers to get into large sedans and 4x4 at the casino - eventually represent 35% of GDP.

The reputation of financial Basicland began to unravel when some players to adjust their full proposed in casino chips. There may already be too tail to make the changes: it would go faster by setting the pump attendant in this way ... This should not pose problems since it was likely to be also reached by the poker bug that wins every time.

But some skeptics began to question the functioning of the casino where he played 100 times the amount in cash later converted into chips.

As John Maynard Keynes wrote, "when a country's development relies on casino-type operations, bankruptcy is never far away" ... and that's exactly what happened. Basicland played his destiny to leave or hundredfold ... and lost everything.

-> Created for Philip R. Munger, Barry A. Munger, Molly Munger, Wendy Munger, Emilie Munger Ogden

End of the story of Charles Munger.

? We have no trouble picking up the threads of this story for the place until today. Things went wrong when the most discerning players started getting paid their earnings in hard cash in the middle of summer 2007. It was then that the interbank market has literally frozen like ice: the cash turned into blue ice. We could no longer extract only a few thin flakes large ax.

And so we saw forming in the fall of 2008 before the agency banks and casinos British queues such that we no longer had observed since 1929.

To reassure the public, the government of Gordon Brown, with support from Alistair Darling, hastened to redeem the establishments. After re-paint and changed a few light bulbs to make more intimate, he put "ownership change, the gaming tables are open."

Eighteen months later, casinos copiously replenished in any new chips seem to work as before. Many players have taken their game of poker chip stacks piling up on the green are higher than ever (especially in "JP Goldman").

The temptation becomes very strong checkout to transform his chips into something more tangible. The sudden bout of weakness in the markets since January 11 betray the call of air created by those who desert the casino.

? So Thursday's meeting was very poorly over in Europe ... Great drama, however, Wall Street, which had opened down by 1.5%, to end displaying only 0.2% decrease for the S & P 500 - or -0.08% with respect to the Nasdaq.

Someone had to tell the micro chips that would be distributed free to most loyal customers!

The scenario was diametrically opposed to Europe a few hours earlier. The initial consolidation of -0.5% was transformed into violent correction after the publication of two to 14.30 U.S. statistics deemed disappointing. It was announced including an increase of 22 000 job seekers last week in the U.S., bringing the total to nearly 500,000, after four consecutive weeks of degradation.

Orders for durable goods fell 0.6% in January, outside the aviation sector. The American consumer is seeking by every means to reduce its heavy spending.

The CAC 40, which skidded sharply below 3700 points, has narrowed the gap from 2:45 p.m. to 3669 points from 16 February ... but it did not stop there. He quickly lost 2%, weighed down by the relapse of Total and Technip then, step by step, that of EDF and GDF Suez while the barrel unscrewed from 3.7% to $ 77 on NYMEX.

Unsurprisingly, the dollar reached new annual record against the euro (at 1.3475) before giving some ground (1.355) in the early evening.

But whether the euro or the dollar, this is not the best choices for who is about to change his chips before deserting the casino. Once emerged pocket full of paper money, the more savvy players rush to convert assets into gold.

Charles Munger would not disavow such an epilogue ...

---
-> Site for Emilie Munger Ogden, Wendy Munger, Molly Munger, Barry A. Munger, Philip R. Munger

Charlie Munger, the eminence grise in the shadow of Buffett

Charlie Munger, vice chairman of Berkshire Hathaway, is often overshadowed by his friend Warren Buffett. However, Munger has a considerable influence on the investment philosophy employed by Buffett and Berkshire.

Like Buffett, Munger is from Nebraska. He began his career as a lawyer but having a friendship with Buffett, Munger finally decided to give up his prestigious career as a lawyer for Buffett to join the executive of Berkshire Hathaway. Over the years, the two men developed a kind of mutual understanding, which can often be observed during the annual meetings of the group. Indeed, when shareholders strafe of issues, Buffett always responds with insightful remarks while Munger responds more spiritual and tongue-in-cheek, much to the delight of their audience.

Munger Buffett helped to develop his talent for finding undervalued stocks but also to invest in companies with solid fundamentals haves considerable competitive advantages. In other words, the quality of the business is very important to Munger: the fact that the action is at a low price is not everything.

Munger is also pushing investors to spread their knowledge to successfully select the right actions. This means that investors should not only focus on a few themes rather limited but should expand their horizons to learn and master multiple subjects.

For example, an engineer should learn accounting to understand how a company can make a profit. And a good financial analyst should not confine itself to making calculations or checking your stats, but should also know how to operate the machines in a factory. This experience helps investors to gain knowledge on the overall operation of things, which, in turn, helps them better understand the economics of a particular company.

With this knowledge, investors can stay focused on the most important while others leave the game due to a failure of short-term. In short, the experience can help Munger recommends investors cunning to take advantage of the short-term vision of others.

---
-> Created for Philip R. Munger, Barry A. Munger, Molly Munger, Wendy Munger, Emilie Munger Ogden

Charlie Munger and the late U.S.

? A few years ago, we had fun a lot to make fun of the financial industry. Her claims were absurd and offensive. His illusions were breathtaking. Its leaders were clumsy and crooks.

But the financial sector exploded in 2007-2009. Now that we have there?

The government! That does exactly the same things ... commits the same mistakes (and worse) ... and works hard at its own extinction.

"Basically, it's over" ... Charlie Munger says. The partner of Warren Buffett believes that the glory days of the economy and the American Empire are over. He explained what he calls a "parable" in Slate Magazine.

This puts Munger in direct opposition to all these economists, bankers, politicians, experts and troublemakers in circles who think they can do better than the financial industry. Martin Wolf in the Financial Times says that the challenge is to "walk the tightrope" between too artificial stimulants and a premature end of stimulants.

Richard Koo and Paul Krugman are of the opinion that the authorities should stimulate the economy even more to offset the forces of contraction.

Most people think the economy will manage to float ... thanks to all those geniuses who work at the U.S. Treasury Department and the Fed.

-> Created for Philip R. Munger, Barry A. Munger, Molly Munger, Wendy Munger, Emilie Munger Ogden

One can always dream! The economy could float or not (the Wall Street Journal reported that the growth rate returned to normal). But if the economy is actually derived from this depression ... it will be in spite of all these central planners who tell him what to do, not because of them.

? As far as we can tell, we are still in depression - that is to say in a deflationary contraction. You will see spending a lot of conflicting statistics and analysis can, over the next five to ten years. What we will not see, however, is the true growth ... at least not until the debt is substantially cleared, that costs are reduced and a new economic model is found. "Growth" that we are witnessing today is largely an illusion - a mirage, an attractive nuisance. Later, he will pay!

To put it another way, we will not see any real growth until there is a solid base on which to build. New foundations, with lower costs and fewer leeches.

Yes, dear reader, the problem is not a liquidity problem. This is not a problem bank. It's not even a debt problem. The main concern is that the U.S. economy - but one could say almost the same thing in Japan, the United Kingdom, Italy ... and many other countries - is too expensive, too rigid and too full of zombies.

Munger is right. Or at least he is right about what happened so far. The financial industry has transformed the U.S. into a casino ... and too many people have lost their money.

We do not know the result of the parable of Munger. We were unable to download the second page of Slate's article. But it's a smart man. We doubt he could miss the role of government. For starters, the private sector was responsible for debt. Now is the turn of the authorities.

? Is it Ronald Reagan who said that the Soviet Union was "the wrong side of history"? The Bolsheviks were obviously on the wrong side of history in 1989. We knew that. They knew it. The problem was so obvious that they had no choice. Their economies implode - because of rigid central planning. They abandoned the idea, and changed sides.

-> Site for Emilie Munger Ogden, Wendy Munger, Molly Munger, Barry A. Munger, Philip R. Munger

Now it is the United States on the wrong side of history. As the Soviet Union, they try to impose their will by force in Afghanistan. As the Soviet Union, they have too much spending and not enough income. And like the Soviet Union, they also try to impose their will on the national economy - through central planning. Not exactly the big shoes of former apparatchiks, is of central planning post-Berlin Wall. Collectivism with a clown nose.

The U.S. nationalize key sectors and borrowed heavily ... passing the burden of economic "growth" of the private sector to the government. Everything from personal finance to food, through banking, insurance, automotive and employment is now owned, provided or subsidized by the U.S. government.

Once the Soviet Union fell ... the world came to observe the precipice collectivist ... and ended up slipping. In October 2009 the IMF had 153 stimulus programs or bailouts. If you buy a house or a car in 2009, the government was probably there to help. And if Obama follows his program - it's not about to stop. He remains a single action, however trivial it may be, that does not support, approval or government funding?

Munger was perhaps underlined. Or maybe not. Anyway, we'll charge: the U.S. economy was stronger before we burden of so many people depending on it ... and so many smart people helping them move forward.

It will make little progress until she is not freed from these people. That will not happen as it will not be coming right into the wall ... losing all hope. Live at the expense of others is a difficult habit to lose.

Note: This article has rained? To receive daily complete edition of The Daily Reckoning e-mail, simply register.

---
-> Created for Philip R. Munger, Barry A. Munger, Molly Munger, Wendy Munger, Emilie Munger Ogden

Shareholders meeting of Berkshire 2011: Selected Songs
Each year at the general meeting of shareholders of Berkshire Hathaway, Warren Buffett and Charlie Munger's gossip capture the attention of investors. During the question and answer session, the duo responded with an avalanche of questions, both in gold and in terms of succession to the head of the group. Here are some answers compiled the most interesting. In the case of David Sokol The audit committee of Berkshire Hathaway has disavowed David Sokol last week. Buffett did not mince words: Sokol has violated the internal rules of Berkshire Hathaway on insider trading and breach of the principles that Buffett recalls every two years its executives. Charlie Munger is the case in one word: hubris. On the technology sector Buffett and Munger have said they would spend time to learn more about technology companies. It su ...

----
-> Site for Emilie Munger Ogden, Wendy Munger, Molly Munger, Barry A. Munger, Philip R. Munger

The game is almost over: the U.S. does not end the crisis

Charles Munger, partner of famed investor Warren Buffett predicted sabotage the reforms and the collapse of the economy and political system of the United States.

Partner with renowned investor Warren Buffett - Vice-Chairman of the board of Berkshire Hathaway, Charles Munger, Sunday at Slate.com, owned by Washington Post published an article on the decline of the U.S. economy. Text entitled "The game is almost over" ("Basically, It's Over" http://www.slate.com/id/2245328) represents "a parable about how a nation came to financial collapse."

Munger describes the emergence, flowering, and the disaster the country Basicland (basic (English) - Main, Main), situated on the main island and populated by Europeans in the early 1700s. Gaming industry has extended its influence across the country and in the corridors of power, and the main contribution has convinced a majority of market efficiency, free from interference. All this led to the collapse of the economy, the change of political system, and the country now called Sorrowland (Sorrow (English) - pain, grief).

----
-> Created for Philip R. Munger, Barry A. Munger, Molly Munger, Wendy Munger, Emilie Munger Ogden

The financial world's most famous manager has recruited a small hedge fund in Connecticut to manage part of its portfolio, propelling it immediately as a possible successor.

After three years of research, Warren Buffet would have finally found a rare bird. He has chosen Todd Combs, manager of the small hedge fund Castle Point Capital in Greenwich, Connecticut, to take, ultimately, his estate as the main investor of Berkshire Hathaway.

Aged 80 years, the multibillion dollar bet on a 39 year old man who ran up this $ 400 million in assets and who will take over "a significant portion of Berkshire's portfolio," according to Warren Buffett. He "will not take all of the investment function as long as I'm here," warned the octogenarian. The portfolio of the holding company is comprised of interests valued at 50 billion at June 30 and a bond portfolio, which represents about thirty billion dollars.

The choice of the investor in financial services was surprised because he is little known and has not managed very large amounts. "The most talented people with the most independent judgments are not in large structures", commented to Reuters James Armstrong, president of Henry H. Armstrong Associates in Pittsburgh.

-> Site for Emilie Munger Ogden, Wendy Munger, Molly Munger, Barry A. Munger, Philip R. Munger

A graduate of Columbia meticulous

In the Anglo-Saxon, an investor Castle Point Capital Fund, established five years ago, Todd Combs described as a very meticulous, which draws heavily on research and understands how businesses operate. He has worked at Progressive Corp.. and therefore familiar with the insurance world, an axis of major investment in Berkshire Hathaway.

Todd Combs is a graduate of Columbia University, has studied Warren Buffett, and like him, likes to write long letters to its shareholders. Does this mean he will profess oracles, like the Sage of Omaha, with a prose so flowery as the boss of Berkshire who described the bubbles as "mass delusions" or products derivatives as "tools of mass destruction"?

Warren Buffett, who runs the fund with Charlie Munger, his sidekick always, aged 86, explains in a while he intends to split the power between an operations manager and chief investment officer, his son Howard to take the title of "chairman" after his disappearance. For the first post, is a native of Omaha, like himself, who is tipped. David Sokol, 53, is currently president of two subsidiaries of Berkshire, MidAmerican Energy and NetJets. For the second post, Todd Combs is now in pole position. He will join an investment company with fewer than 25 employees own, but is present in over 70 industries, bringing the total 257,000 employees.

Test phase

But it would be presumptuous to think that the appointment is granted. Warren Buffet, who has not intention of letting go the reins, first wants to see her foal immersed in the culture of the firm and will test it on its investments.

Other candidates to succeed to the position of the most famous investor in the world are still possible. Starting with Li Lu, the fund manager Himalaya Capital Management, which manages the money of Charles Munger. According to the Wall Street Journal, he refused the job, but nobody scratch lists as the estate will not be formalized. "You can earn big money in this post, but not billions, in any case has accused Warren Buffett.

-> Created for Philip R. Munger, Barry A. Munger, Molly Munger, Wendy Munger, Emilie Munger Ogden