‘Things were way tougher’: Charlie Munger had a frank message for people fretting about 'hardship' — here's how to stay invested in tough times
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2024 rolls along, many Americans are still feeling the effects of inflation and the strain that things like elevated costs of living and high interest rates can put on family finances.
But Warren Buffett’s late right-hand man and long-time business partner Charlie Munger, who died in November of 2023, suggested that we should be more content with our current situation.
“People are less happy about the state of affairs than they were when things were way tougher,” Munger recounted last year, referring to living through the immense hardship of the Great Depression.
Here are a few ways you — investing legend or not — can make the best of the current economic situation and safeguard your financial future.
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Invest extra cash outside the stock market
You don’t need to be investing exactly like Munger to be investing well. Nor do you need to hold off on investing amidst economic stress.
Alternative investments have traditionally been exclusive to ultra-high-net-worth individuals, but new platforms are making it easier and cheaper to buy in. That means you no longer need to limit yourself to the stock market in order to grow your portfolio value or find that much needed stabilizer.
If you’re looking for a new investment opportunity that can hedge the violent swings of the markets, you’ve got several options.
Real estate has demonstrated its resilience during tough economic times, particularly necessity-based properties.
First National Realty Partners* lets accredited investors own a share of institutional-quality properties leased by national brands like Whole Foods, CVS, Kroger and Walmart. You’ll get the potential for a stable, positive cash flow and the firm handles the work for you.
If you want to explore assets beyond real estate, Yieldstreet* allows investors to invest in a broad range of diversifying assets.
From cryptocurrency to art to legal finance, Yieldstreet makes it simple to invest outside of the stock market with its professionally-vetted investment opportunities.* Plus, they offer accessible minimums and term flexibility.
Read more: Generating 'passive income' through real estate is the biggest myth in investing — here’s how you can do it in as little as 5 minutes
Don't underestimate the power of pocket change
Building small, positive financial habits can have a huge impact in the long run.
With Acorns* — an investing and savings tool — you can save for the future with expert-built portfolios based on your financial needs and goals. And because they offer automated investing, it’s a hands-free approach that lets you take part without overthinking your stock picks or lagging behind on your investment goals.
Signing up for Acorns takes less than five minutes, and if you start now, you'll get a $20 bonus investment.*
Once you’ve signed up and linked your credit and/or debit cards, all you have to do is spend as you normally would and Acorns will round up your everyday purchases to the nearest dollar and put that change into a smart investment portfolio to grow.
You can keep a close eye on your portfolio through the app and see just how far your change will go. And amidst economic uncertainty, you can’t go wrong with having extra funds to fall back on.*
Make buying and selling stocks easier
The investing veteran was able to stay happy amidst economic volatility in part thanks to three stocks — Bank of America, Wells Fargo and Alibaba Group.
Whether you want to hitch your wagon to Munger's favourites or not, there are online platforms that can make executing your investing strategy easier by removing the guesswork .
An automated investing platform like Wealthfront* can help you invest your money in a way that best aligns with your financial goals.
By answering a few questions*, Wealthfront helps you determine your risk tolerance and optimal asset allocation. It then crafts a diversified portfolio for you, spanning a range of ETFs — from stocks and bonds to real estate.
Sign up now and they'll help jumpstart your wealthbuilding with an extra $50.*
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
