Munger Talks Success, Advocates Investing On a Drawdown

Warren Buffett and Charles Munger admire disclipline when purchasing investments on a drawdown, a common tactic utilized by certain discretionary managed futures funds. But Munger is not likely to know about these entities where the profits are independently audited by a regulatory authority generally considered not controlled by Wall Street. Charlie Munger on trading derivatives Trading derivatives is “like the slaughter of the innocents,” Munger said in a recent Jason Zweig interview published in the Wall Street Journal. “It makes the people who run Las Vegas seem like good people.” Sources close to the derivatives industry have previously speculated that…