Our âhalvingâ roadmap is going according to plan. [The Jolt with Stephen McBride] Bitcoin > $40,000 Happy Monday! Bitcoin soared past $40,000 over the weekend, a price it hasnât touched in 1.5 years. It means our âhalvingâ roadmap is going according to plan. A few weeks ago, I shared [my research that shows why I expect]( bitcoin to hit $150,000 this cycle. Bitcoin was $27,000 when I first shared it. Already, the price has appreciated 56%. If youâre at all interested in speculating in the fast-moving, high-risk, and potentially high-reward world of crypto, this is your best opportunity to do so since 2019. Crypto is extremely cyclical. And [for reasons I show here](, the next upcycle has likely begun. Today, Iâd like to share some important insights I learned from Charlie Mungerâthe billionaire investor who [passed away at the grand old age of 99 last week](. First, some life lessons⦠#1: Everyone loved Charlie. Billionaires are usually hated. Eat the rich and all that. Most of them live in fancy, gated communities far away from the riff-raff. Iâve never heard a bad word about Charlie Munger. I think thatâs because he generously shared so much wisdom for over 50 years through speeches and books. He was one of the great tutors of our generation. And did you know Charlie lived in the same ânormalâ house for 70 years? He said moving into a mansion would have ruined his kids. Important lesson there! #2: Itâs never too late to get rich. One of the reasons I love reading biographies is they help me understand a person before they âmade it.â You learn their struggles, hardships, and how they overcame them. Charlie Munger didnât team up with Warren Buffett (and get rich) until he was in his mid-50s! Lesson: We can always change our circumstances. If you want something, go get it. Itâs never too late. #3: Munger was an unapologetic capitalist. Communists think the only way to get rich is by exploiting others. In Charlieâs own words, thatâs a pile of âturds.â Most folks who get rich end up creating a ton of wealth for others in the process. If you invested $100 in Berkshire Hathaway (BRK-A) in 1978 when Charlie Munger joined the firm, you'd have $396,00 today! #4: Now, the greatest investing lesson I learned from Charlie: Great investors must evolve. In the early days of Berkshire, Warren Buffett looked for âcigar buttâ stocks. These were companies on the verge of going broke and trading for less than the cash they had in the bank. Charlie taught Buffett to invest in quality companies that could dominate for years rather than those that might have âone puff left in the cigar.â Before Munger: Buy reasonable businesses at great prices. After Munger: Buy great businesses at reasonable prices. Buffett credits this shift for helping turn Berkshire into an $800 billion success. But if Buffett and Munger were just starting out today⦠would they still invest this way? Mostly, yes⦠but with one important evolution. The tech-heavy Nasdaq has outperformed Berkshire 2-to-1 since the financial crisis. In other words, tech stocks beat Warren Buffettâs portfolioâby a lot: By their own admission, Charlie and Buffett missed the technology wave. They could afford to because they were already billionaires. But ordinary investors simply canât ignore fast-growing businesses. Businesses like Amazon (AMZN) didnât exist 50 years ago. Amazon grew its sales by an average of 30%... per year⦠since 2000. It now rakes in over half a trillion dollars a year: Is it any wonder Amazonâs stock has surged 10,000% since 2000? Unfortunately, many investors who had the chance to buy Amazon passed it up either because it was too expensive or it had run up too much in price. They were looking for reasonable businesses at great prices. Big mistake. Two takeaways: Businesses like Amazon that can grow rapidly for decades are a new breed. They basically didnât exist prior to the 2000s. Doesnât it make sense that great businesses should trade at a higher valuation than, say, a copper mining operation? And winners keep on winning. New highs are steppingstones to more new highs. So how would Buffett and Munger have evolved if they were starting over today at age 40? I think theyâd make more investments like BYD (BYDDY). A few years ago, Munger invested $230 million in Chinese electric car maker BYD, which was trading at 30X earnings. Traditional value investors would wince at that P/E ratio. That stake is now worth $5.5 billion. Charlie said, âI have never helped do anything at Berkshire that was as good as BYD.â Rapidly growing businessesâmany of which trade at reasonable pricesâhave been the best-performing stocks over the past decade. AI chip king Nvidia (NVDA) ranks as the #1 best-performing stock in the last 10 years. I bet an investor who buys Nvidia at 25X earnings today will make a lot more than one who buys Ford (F) stock for just 7X earnings. In [Disruption Investor](, we invest how I think Buffett and Munger would invest if they were starting over today. We buy profitable companies that are growing rapidly and valued reasonably. Becauseâas Charlie taught usâgreat investors evolve. [[Go here to see if a risk-free trial to Disruption Investor is right for you.](] Todayâs dose of optimism⦠In Poor Charlieâs Almanack, Munger wrote: âBad things are going to happen to you. Problems are an inescapable part of life. âWhen they do, get up and keep going. You donât have any other choice than to keep moving forward (especially if you have a family to feed).â RIP to one of the greats! Stephen McBride
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