New Money: Charlie Munger’s Warning for Investors in 2023

Inflation remains high but is coming down. Interest rates are at their highest level in over a decade and continue to rise. This combination may be new for many investors today.

For those with more experience, chances are it’s reminiscent of other markets, such the inflationary period of the 1970s. Those who have navigated these types of markets before may have the best insight into how to protect yourself in 2023.

One such investor is Charlie Munger. The 99-year-old billionaire has been a driving force in moving Warren Buffett away from strictly value investing and towards owning great companies.

Following the market’s 20 percent market drop in the past year, many investors may want to sell out. But that overlooks the fact that prices go down in the short-term, but up over the long haul.

Investors who buy now may not get a good return in 1 year, but in 10 years. Investors taking a long-term approach to investing will sit through a number of big declines. The challenge is having the patience to see it through. That’s where the big gains lie.

Munger even points out that those with great investments should be willing to hold through 50 percent declines. Those who don’t are likely to only see mediocre returns.

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