Charlie Munger’s Sit-on-Your-Ass Investing Concept

Charlie Munger presented the model of “Sit on your ass investing” at the 2000 Berkshire Hathaway Annual meeting. Description courtesy of Losch Management Company, an Orlando, Florida-based investment advisor.

'Charlie Munger: The Complete Investor' by Tren Griffin (ISBN 023117098X) You have value investing, and growth investing, but now we also have “sit on your ass investing”, which is better.

The problem with value investing is it requires too much work.

First you have to find an undervalued stock and buy it cheap. Then you have to sell it when it the price reaches or exceeds your calculated figure for its intrinsic value.

Because this requires many decisions over a long period of time, Charlie Munger prefers his own method in which all you have to do is pick a really great company when it is attractively priced, and then just sit on your ass. The great advantage being that it only requires one decision.

Charlie said: “If you buy a business just because it’s undervalued then you have to worry about selling it when it reaches its intrinsic value. That’s hard. But if you can buy a few great companies then you can sit on your ass … that’s a good thing.”

The whole idea of not having to do something extraordinary is one all investors should heed, yet it is easy to forget, particularly in stressful situations.

Recommended Reading: ‘Charlie Munger: The Complete Investor’ by Tren Griffin

Mungerisms: Amusing Quotes from Charlie Munger from the Berkshire Hathaway 2014 Annual Meeting

Amusing Quotes from Charlie Munger from the Berkshire Hathaway 2014 Annual Meeting

Charlie Munger is not always politically correct, always offers a wealth of information, and hilarious now and then. At the 2014 annual meeting of Berkshire Hathaway, here are some of his best zingers:

  • On the interplay between CEOs and corporate directors regarding compensation: “You start paying directors of corporations two or three hundred thousand dollars a year, it creates a daisy chain of reciprocity where they keep raising the CEO and he keeps recommending more pay for the directors.”
  • On CEO pay and work habits: “Does the Supreme Court work less hard because they don’t get paid like corporate executives? We have some corporate directors who draw more pay than members of the Supreme Court. That’s crazy,”
  • 'Poor Charlie's Almanack: The Wit and Wisdom of Charles T. Munger' by Peter D. Kaufman and Ed Wexler (ISBN 1578645018) On taxing the 1%: “The taxes on wealth were much higher when I was much younger. So for somebody of my age, I don’t think they’re ruining the world because I’ve lived through way more punitive taxes on the rich than we have now … I don’t think everybody who’s been especially favored should take the last dollar that he or she should get. I think we all have an obligation to dampen these fires of envy.”
  • On Facebook, Twitter, and the appeal of social media: “It just doesn’t interest me at all to gab all the time on the Internet with people and I certainly hate the idea of young people putting in permanent form the dumbest thoughts and the dumbest reports of action that you can ever imagine.”
  • On his favorite advance in technology: “I’m in love with the Xerox machine.”
  • On Donald Sterling, the then-owner of NBA Clippers, who then faced racial remarks and lifetime ban:”He’s a peculiar man. He’s past 80. His girlfriend has had so many facelifts she practically can’t smile. This is not the noblest ideal of what the American businessman should be.”

Insightful books about Charlie Munger

The Magnificent Bhoganandishwara Temple Complex in Nandi (near Bangalore)

Sculptures at Bhoganandishwara Temple Complex

Bhoganandishwara temple in Kolar district is one of the finest Dravidian temples in Karnataka.

Actually it is not a single temple but a complex built over a period of more than six centuries beginning from eighth century A.D. According to inscriptions this temple was built by Ratnavali, the queen of Bana king Vidyadhara. As Bana Vidyadhara ruled during the last quarter of the eighth century A.D., the earliest part of this temple should have been built by that time. There are many Chola inscriptions of eleventh century A.D. in this temple.

The temple consists of a huge prakara of 320 feet long and 250 feet broad. The original temple consisted of two garbhagrihas, two sukhanasis, navaranga and two nandimandapas. The northern garbhagriha had an image of Bhoganandishwara while the southern garbhagriha was dedicated to god Arunachaleshwara. Sukhanasi and navaranga have finely carved jalandhras with sculptural embellishments. The nandi mandapa has Chola inscriptions and perhaps this was built during the Chola period.

Bhoganandishwara Temple Complex in Nandi

The four pillars in the navaranga are carved with minute sculptures on all the sides. The ceiling over these pillars is huge and has Siva and Parvati along with eight dikpalas. In front of the navaranga entrance is the nandi mandapa with doorways on east, north and south. In front is a kalyanamandapa built of black stone. There are ceilings of ashtadikpalas. The beams have fine sculptures of Siva, Vishnu, Lakshmi, etc. The pillars are also carved with gods and goddesses like Hanuman, Vishnu, Lingodbhava, Krishna, Surya, Tandavesvara, Brahma, Gopalakrishna etc. The patalankana in front of the mukhamandapa is surrounded by an open verandah which stands on an ornamental plinth.

The outer walls of the early shrines have decorative plinths with pilasters, turrets and jalandhras with some sculptures here and there. In the prakara are found two shrines of a later period which have Prasanna Parvati and Apitakuchamba aspects of Devi as consorts of Bhoganandishwara and Arunachalesvara. To the north outside the encloser is a hall known as Vasantha mandapa which has sixteen fine pillars. Opposite to it is another mandapa with four pillars known as Tulabhara mandapa. To the north of this is a tank called Sringitirtha. Thus the entire temple complex is vast and attracts a large number of pilgrims from all over Karnataka.