Eric Balchunas: I'm always interested in chatting with stock investors and getting their opinion on whether they like picking stocks or they just stick with index funds. John Vogel would say you should invest 100% of your money in index funds, but Eric says that's not for him because he doesn't find it enjoyable to pick stocks. Charlie Munger has a very different approach which is more bullish on indexing than Warren Buffett who prefers individual stocks. The two approaches have been informed by the fact that we're all bad at picking stocks according to studies.
IN THIS EPISODE, YOU’LL LEARN:
02:00 - What led Chris into being so passionate about studying Warren Buffett and Charlie Munger.
08:45 - Why Chris chooses to allocate most of his portfolio to index funds.
17:18 - Why Chris typically avoids investing in more mature companies.
23:20 - How Warren Buffett’s definition of risk differs from that of the academics.
29:14 - What makes Costco such a great business.
36:21 - The opportunities for growth that Costco will be pursuing.
55:22 - How Warren Buffett and Charlie Munger’s investment strategies differ.
And much, much more!
*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.
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