Charlie Munger, business partner of Warren Buffer for the past 45 years, passed away last month.
One of my favourite Charlie Munger quotes is:
The big money is not in the buying and the selling, but in the waiting.
I am an optimistic and positive person.
It is one of the many great habits I picked up from my dear late father.
We decide to be positive or negative; optimistic or pessimistic.
I know successful and happy people choose to be positive and optimistic.
To be negative and pessimistic is to be closed off to opportunity, growth and therefore success.
I am equal parts positive and optimistic about 2024. Here’s why:
- House prices will finish the year up 10 per cent; higher in Sydney, Brisbane and Perth.
- Rents will finish the year up 8 per cent; higher in Sydney, Melbourne and Perth.
- 1 and 2 proves Charlie Munger’s quote to be true.
- 1 and 2 happened because demand (growing population) exceeds supply (new home building). I don’t see that changing in 2024.
- Interest rates are high, but won’t stay high. The hard part of ‘waiting’ has passed. Inflation started the year at 7.8 per cent and finishes the year at 4.9 per cent. Unemployment started the year at 3.5 per cent and finishes the year at 3.9 per cent. The RBA will bring rates down in 2024.
- The Australian population has doubled in the past 50 years and will likely double again in the next 50 years. What an opportunity that presents to build wealth.
My hope for you is that you are finishing 2023 and entering 2024 full of positivity and optimism, too.
P.s. Poor Charlie’s Almanack is a great Christmas present – it’s not just about business or investing, it provides a great template for approaching life generally.
P.p.s So it Bulletproof Investing
