Charlie Munger's Investing Insights on BYD, Tesla, Alibaba, and Bitcoin - Daily Journal Shareholders Meeting 2023

Investment Strategies and Preferences

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  Charlie Munger prefers an investment in BYD over Tesla because BYD is so much ahead of Tesla in China and has a large manufacturing space to make cars.
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  Munger questions the traditional finance teaching of limiting the percentage of net worth invested in stocks, suggesting that if an opportunity is a "cinch," the logical answer is to invest 100% or even 200%.
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  Charlie Munger believes that owning common stocks instead of government bonds is a better investment strategy due to the inevitable increase in inflation caused by democratic politics.
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  Warren Buffett's strong fiduciary gene and exceptional loyalty to early shareholders have helped make him one of the greatest investors and Compounders that the world's ever seen, according to Charlie Munger.
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  Charlie Munger praises BYD for being ahead of everyone in furnishing credit convenience, which has made him a better investor.
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  Charlie Munger considers BYD as the favorite stock he's ever purchased, with a return of about 8-9 billion on a 270,000 investment, which is a pretty good rate of return.

Personal and Corporate Finance Insights

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  Munger believes that the most challenging bias to overcome in decision making is denial, where people's minds play tricks on them and they think the truth isn't really happening, causing enormous destruction in business.
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  Charlie Munger believes that as long as Costco maintains its strong culture and low markup policy, it has a wonderful future and he is a total addict.
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  Charlie Munger emphasizes the importance of good judgment in personal and corporate finance, stating that "if you have good judgment your life will work a lot better than if you have bad judgment."
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  Charlie Munger believes that the secret to a happy life is having low expectations and meeting reasonable expectations of other people, rather than overpromising and underdelivering.
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  Jim Senegal, former CEO of Costco, is one of the most remarkable businesspeople in history due to his genius for handling people and understanding all aspects of the business.