By the end of this you will probably think I am an arrogant guy. But trust me, I would love to hear your opinions and see where I could be wrong. I am trying to make sense of this and it confuses me.
Charlie Munger has said he doesn't believe in market timing. He has also repeatedly said you have to get used to the market falling -50%. To treat it like night and day – it occurs sometimes and you just get through it. Meanwhile you should wait for a big opportunity. And when that opportunity comes – you pounce it hard.
I don't know about you, but to me this sounds exactly like timing the market. You essentially are waiting(not acting, so timing) for something negative to happen to a company or the economy as a whole and the price/prices to get crushed to such a ridiculous level that you have a what Munger calls “rare opportunity”(or essentially timing for such).
For the daily journal portfolio he manages he has bought like 5 stocks in 15 years. 4 of them are banks he purchased as banks collapsed in 08-09. 1 is “recent” – BABA after it had went down 50-60% and kept on adding as it was down 70%.
How does this not equal to timing the market?
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