It might be a new year, but not everyone is excited for what 2023 may bring. Stocks are down, economic growth seems to be slowing and inflation remains rampant.
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Charlie Munger’s stock picks for 2023
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But Warren Buffett’s right-hand man and long-time business partner Charlie Munger — chairman of Daily Journal — suggests that we should, in fact, 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 said earlier this year, recounting living through the immense hardship of the Great Depression.
The 98-year-old investing veteran is staying happy amidst economic volatility at the hands of three stocks — Bank of America, Wells Fargo and Alibaba Group.
When interest rates increase, the spread of a bank’s earnings widens. And it just so happens that Bank of America has steadily been upping its payout to shareholders, making it a savvy holder for Munger.
Daily Journal owned 1.59 million shares of Wells Fargo (NYSE:WFC) as of Sept. 30, making the bank its second-largest public holding with a 39.16% weight.
While Chinese tech stocks haven’t exactly been market darlings of late, Daily Journal has kept the e-commerce giant Alibaba Group as its third-largest holding.
If you’re hoping some of Munger’s blunt realism will rub off on you this year, think about how to take your finances seriously and avoid a doom-spiral despite the intimidating state of inflation.
Here are a few ways you — investing legend or not — can make the best of the current economic situation and safeguard your financial future.
Stop underestimating the power of pocket change
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.
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 you can start saving and investing for just $3 a month.
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.*
Pay attention to your budget
While it may be hard to see the light at the end of the economic tunnel right now, it doesn’t mean you should be throwing caution to the wind when it comes to your finances — this is where Rocket Money comes in.
Rocket Money* is a money management tool that helps you gain awareness of your spending habits, maintain a budget and track your savings, giving you a chance to prioritize your personal finances amidst rising inflation and stock market volatility.
One of Rocket Money’s most notable features is its subscription tracking system, which helps customers weed out unnecessary payments for things they no longer use. You can even automate your payments through Rocket Money and avoid the risk of late fees or of overdrafting your account.
The app is free to download* and provides you with a one-stop shop for viewing your investments, transactions, recurring expenses and more. Simply provide your email and link your bank account to start saving your money instead of wasting it.
Hedge your portfolio against inflation
Commercial real estate is recognized for adding stability to your investment portfolio. But it’s also been reserved for the elite, leaving other investors lacking its inflation-hedging benefits — until now.
First National Realty Partners* is a private equity firm whose platform allows everyday investors to have access to institutional-quality, grocery-anchored commercial real estate investments without the leg work of finding deals yourself.
With FNRP, investors own a share of properties leased by national brands like Whole Foods, CVS, Kroger and Walmart, which provide essential goods to their communities — these investments never go out of style, even when the economy is turning on you.
Not to mention, the firm handles the work for you. FNRP’s team of experts manages every component of the investment life cycle. They also host deal webinars, in which they break down the specifics of each investment opportunity and give investors the chance to ask questions, so you’re not missing out on any crucial information.
All you have to do to get started* is fill in some information about yourself, your income and investment goals.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.