Charlie Munger on Six Major Faux Assets

1. Mansions Beyond One's Means: Vanity-Driven Home Purchases Become Lifelong Debt

2. Luxury Cars: A Car Depreciates 20% Upon Purchase, Annual Loss of 15%-20%, Should Be Kept Within 10% of Annual Income

3. Complex Financial Products: High-Fee Active Funds Lose Over Half of Returns in 30 Years

4. Non-Productive Assets: Gold and Bitcoin Have No Cash Flow; Essentially a Game of Fooling Each Other (I Disagree with This Point)

5. Frequent Trading: Disrupts Compounding, Incurs Costs, Emotional Decision-Making

6. Credit Debt: High-Interest Credit Cards Are Wealth Vampires