Charlie Munger’s simple formula for success:
-Spend less than you earn
-Invest shrewdly
-Avoid toxic people and toxic activities
-Defer gratification
-Try to keep learning all your life
Your dollar lost 53% of its purchasing power over the past 30 years.
That’s not an anomaly.
That’s the system.
Inflation isn’t just a number - it’s a silent thief.
Invest in real assets, or watch your money evaporate.
12.7% of credit card balances in the US are now 90+ days delinquent, the highest since 2011.
5.2% of auto loan balances are now 90+ days delinquent, the highest since 2010.
https://t.co/l5IYmkf6Ih
Of the 25 largest companies in the world:
-Europe claims 1
-China claims 1
-Taiwan claims 1
-South Korea claims 1
-Saudi Arabia claims 1
-Nebraska, Arkansas, Indiana, New Jersey, Idaho and Colorado each claim 1
-New York claims 2
-Washington claims 3
-Texas claims 3
-California claims 6
Capitalism has its flaws, but wow, nothing compares when it comes to pulling civilization forward through innovation.
What produces inflation?
Milton Friedman had the answer decades ago:
“Too much government spending and too much government creation of money - and nothing else.”
Credit card debt is the silent killer. Over 12% of balances are 90+ days delinquent – near the highest in 14 years - with interest rates north of 21%. Nothing destroys wealth faster.
Discretionary spending is declining:
In 1960, housing, healthcare, and tuition accounted for ~22% of consumer spending, on average.
Currently, those categories account for ~37%, just 2 percentage points below an all-time high.
This comes as their costs have significantly outpaced inflation.
Since 2000, hospital services, college tuition, and housing prices have surged by 271%, 194%, and 108%, respectively.
By comparison, overall inflation has risen 90%.
Essential expenses are eating up more income than ever.