Charlie Munger calls HFT trading “Rats at the Granary”

There are loads and loads of nuggets in this video. I find it interesting that
the CNBC crowd highlights his apathetic view on gold where as the real story
here is how he so throughly destroys the high frequency trading crowd which now
dominates trading. He calls them “Rats and the Granary”…clipping money along the
investment path.

He goes on to comment that in order to be successful you need to beat the computers.

We agree with this concept. The “Skynet” system is running stocks up and down
based on technical patterns with underlining algorithms. How to beat the computers?
You need strong fundamental companies with good earnings and selling low P/E ratio’s.
Eventually, the computers have to give in to the fundamentals.


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