Best stock investments – “Microeconomics is what you do, macroeconomics is what you put up with”

Best stock investments

That headline is a quote from Charlie Munger from today’s Annual Meeting for Berkshire Hathaway (BRK.B) here in Omaha, and it’s one of the ones that really caught my ear.

He was responding to a question about how he and Buffett avoid making big predictive calls about the economy, or assessing the near-term health of the economy based on the results of Berkshire Hathaway’s 60+ operating subsidiaries…. and, essentially, how they avoid falling prey to the psychological mistakes and hubris that hamper most of us when it comes to investing.

It might be that no executive is better prepared to predict what will happen with the US economy than Warren Buffett, but he steadfastly says that he doesn’t do that because he’s terrible at it.

And if Buffett is terrible at it, with time to do nothing but think deeply about businesses, and with monthly reports on his desk from subsidiaries that tell him exactly what’s happening with railroads, and real estate, and manufacturing, and restaurants, and a dozen other sectors of the economy… what the …

– Best stock investments

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