Munger & 50% Losses

[Poor Charlie]

I’m looking for help finding a Munger Quote.  I believe at a Wesco AGM, responding to a question about drawdowns, Munger made the point that twice in his life he‘s experienced 50% drawdowns which is an unavoidable hazard of investing and those not going through a similar situation have not lived a proper life. 

 

And no…I am not down 50%  ;D

 

[Packer16]

If you look at his drawdown on his fund in the Appendix of The Intelligent Investor you will see was down 53% in 1973-74.

 

Packer

[JRH]

I have seen a video interview where he said something somewhat different. 

 

To paraphrase, he said that anyone who does not have the mental fortitude to watch one of their holdings fall in value (alluding to the stock market) by 50% deserves the mediocre returns that they will experience.

[handycap5]

I cannot vouch for accuracy, but this is what I had from previous notes:

 

There were three times in the past where Warren and my holdings dropped 50% from top tick to bottom tick.  It is the nature of markets and businesses that the quoted. If you do not have the disposition to act with equanimity to these types of vicissitudes, you will not do well in common stocks.

[JRH]