 'Since we can not stop the rise of China, we should trade freely with China, and once we do that, both sides can become stronger and work together to accomplish what we want done, so we must be friendly with China. Trump has blamed China for being very stupid. ' There is a saying that is always correct: reason turns the people in anger bypassed. On November 30, 2017, Charlie Munger accepted an interview with Scott Derue, a professor at Russell School of Business at the University of Michigan at Ross School of Business. During a one-hour interview, Munger pointed out that the famous economist Adam Smith and David Ricardo's most serious mistakes, but also Bitcoin, the United States tax reform, Sino-US relations and other hot topics expressed their own views. After translating "smart investors," excerpts of which issues to share with everyone, Munger also recalled in his interview that the rational choice in every moment of his life is a great wisdom in life. Question 1: Let's answer some of the audience's questions. More than half are about bitcoin or digital cryptocurrencies. Munger: I can answer all these questions very quickly. (Laughter) I think it's extremely stupid to stop thinking about these things. Gold, in my opinion, has a storage value, because people can not invent more gold or have easy access to gold, and it has a scarce advantage. Believe me, humans can make more bitcoins, though they tell you they will not do it. The implication is that they will not do this unless they want to do so. In fact, when they tell you that they have put in place a set of rules that they can not do, horrible things happen as long as they have enough incentives. Bitcoin is the idea of a bad guy, it's a crazy bubble and a bad idea that tempts people to think that they can get a lot of money without working on their own, the most insidious thing on earth, a total insanity. By the way, I told you a lot of life experiences, a lot of things more important, do not waste on something that does not exist at all. Cheating, arrogance, morbid egoism, resentment, extreme self-pity, victimizing paranoia stop you from succeeding, and you find all these things that stand in the way of success, treating them as plagues, bitcoin. laughter) Question 2: Now many Americans are discussing tax policies. What do you think the end result is? Munger: We have a tax bill, they will pass the new tax bill, making whatever adjustments they feel necessary. I do not think it is a bad thing to give more than $ 2,000 a year to families whose annual salary is 70,000 U.S. dollars and have many children.This is a very good regulatory policy.I do not think it is a bad thing to lower the income tax on enterprises in Category C. Including Singapore, Many other successful countries in the world have similar policies that may have a positive impact on the macroeconomy. Everyone knows that this will raise the company's market value, which in turn will trigger a fortune effect, except that some say the wealth effect will be small and others say it will be great, and I can tell you that none of them are sure. My answer is that I really do not know how effective it is. I know it will have a positive impact, but how much impact it has, I can not confirm it and I do not think anyone can confirm it. Is it fair to say that most of the business is owned by endowments and pensions? The world wants companies to take on more pensions. Republicans want to do the same as China: China wants more of China's major companies to be held by pensions, and hope the stock market continues to rise.I do not think China is crazy, and I do not think the Republicans are crazy.It may get very Big success. When I see the parliamentary situation on television, they hate each other very abnormally, and the degree of mutual hatred is morally corrupt. There is a saying that is always correct: People walk by the way. This is the truth. If you are like the people on both parties on TV, you are welcome to the world of pain.You turn your brain into rubbish, you have only one brain, why do you turn it into rubbish? Q3: What kind of new technology will make you excited? Munger: I have never been particularly excited about any new technology. I ask you, what are the most serious mistakes Adam Smith made? I do not think anyone wants to answer that. Adam Smith is entirely correct in terms of market, trade advantage and division of labor, but ignores the steady growth of science and technology that will greatly enhance his wealth and standard of living. He lived in the 18th century and his life style was not much different from that of the Roman Empire. Ignore the power of scientific and technological progress. Now I ask a harder question, what are the most serious mistakes David Ricardo made? I bet none of your Dean can answer that question, so I will not let you try to answer it. sound) Ricardo said the first order of free trade is completely correct, but he neglects the second-order consequence. If you have a relatively developed country, such as the United States, and some other countries that are superior to the United States in certain aspects, such as China, they are relatively poor and you are a more advanced economy.When you suddenly start a free trade, like Ricardo Prove that both parties can live better. However, the less developed countries will develop faster, with the relatively advanced economies growing at an annual rate of 2% and underdeveloped countries by 12%. Soon, they will surpass you as the primary economy. Ricardo never thought about it, and you can supplement Ricardian's lack of knowledge, failing to understand the shortcomings of Ricardo's theory and failing to fully understand the problems between the United States and China. The truth is that there are not only China and the United States in the world, but the United States and China alone can not trade freely with China to prevent the rise of China, but there are many countries in the world, China and other countries Free trade in our country can still achieve its rise. Since we can not prevent the rise of China, we should trade freely with China, and once we do that, both sides can become stronger and work together to accomplish what we want to accomplish, so we must be friendly with China. Trump accused China of being very stupid: the United States is a Compulsory Friendship and everything else is crazy. Q4: Do you have any suggestions for everyone here? Munger: As Ben Franklin said, the single most important decision in life is marriage, not investment.Ben Franklin's best advice on marriage is to open his eyes wide before marriage and close his eyes after marriage Only eyes. I do not think it is wise to look forward to becoming a U.S. president or a billionaire because this is a small probability event. It's a better idea to set a smaller goal, I never thought I'd become rich, I just wanted to be independent and rehabilitate, and many times I just accidentally exceeded my plan. Winners may work very hard, smart, self-discipline or other good qualities, but also have a lot of luck. Menge introduction January 1924 January, Charlie was born in Omaha, Nebraska. One year after he graduated from Omaha Central High School in 1941 at the University of Michigan, he joined a U.S. military training program. In World War II, he was an Air Force meteorologist appointed lieutenant rank. In 1948, Charlie received a doctor's degree in jurisprudence from Harvard Law School without an undergraduate degree. From 1948 to 1965 he worked in law in Los Angeles and ran a very successful law firm 'Munger Torss & Hills'. After 1965, Munger began doing business and engaged in a variety of businesses. In 1975, he began to appear as the director and chief executive officer of Berkshire Hathaway. Currently, Charlie serves as vice chairman of Berkshire Hathaway, chairman of the Daily Journal Corporation and director of the board of directors of the city.
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