From a YouTube video titled: "Charlie Munger on BYD: The Investment He Tried to Stop! | Final Interview with CNBC 2023" viewers are offered a fascinating glimpse into the mind of investing legend Charlie Munger, specifically his journey with BYD (Build Your Dreams), the Chinese electric vehicle giant. It's a story of initial skepticism, a key recommendation from another investing guru, and the ultimate triumph of a company that defied expectations.
Munger himself acknowledges that BYD is one of his favorite investments. However, the video reveals that his belief in the company wasn't always so strong. He credits Li Lu with initially finding BYD and urging him to invest, highlighting the importance of trusting other insightful voices in the investment world.
One of the most compelling parts of the video is Munger's recounting of his initial doubts when Wang Chuanfu, BYD's founder, expressed his ambition to enter the fiercely competitive auto business. Munger admits he tried to dissuade Chuanfu, citing the intense landscape of the automotive industry. It's a reminder that even the most seasoned investors can have their reservations.
But, as the video emphasizes, BYD defied Munger's concerns in spectacular fashion. The company has become an automotive powerhouse, projected to sell a staggering two billion automobiles this year and generating substantial profits. This incredible success story underscores the potential for disruptive innovation to triumph over established industries.
Charlie Munger, reflecting on BYD's phenomenal growth, concludes with a broader observation about great investment records: they're a combination of hard work, talent, and, perhaps most importantly, a dash of luck. It's a humble acknowledgment that even the smartest investors can't predict the future with certainty.
The video provides a captivating narrative of Munger's initial skepticism, his eventual conviction, and the extraordinary success of BYD. It's a reminder that even the most experienced investors can be surprised, and that the combination of vision, innovation, and a little bit of luck can lead to truly remarkable outcomes. What are your thoughts on Munger's initial doubts about BYD? Are you surprised by BYD's success? Share your opinions in the comments below!
