Charlie Munger warns Gen Z investors: It's 'way harder' for recent college graduates 'to get rich and stay rich.' (via CNBCMakeIt)
The contrast, Munger said, makes it difficult to give today's young people any "one-size-fits-all investment" advice. For decades, his go-to advice was to "own a diversified portfolio of common stocks" — a strategy that could earn intelligent investors roughly a 10% return, he said.
But that's no longer such a foolproof tactic, especially given how complex investing has become. "I don't think the future is going to give the guy graduating from college this year nearly that easy [of] an investment opportunity," Munger said. That doesn't mean young people can't profit off smart investments – it just might take patience. At Berkshire Hathaway's, Buffett suggested avoiding single stocks in favor of the S&P 500, a low-cost index fund that holds 500 of the U.S. largest companies. It's a more passive investment strategy that reduces the risk involved in owning individual stocks, which could unpredictably tank.
At the Daily Journal's annual meeting, Munger noted that getting some personalized advice could also help. "I think you have to figure out your level of skill, or the level of skill your advisor has," he said. "To everyone who finds the current investment climate hard and difficult and somewhat confusing, I would say: Welcome to adult life."