Popular Charlie Munger Quotes

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Charlie Munger Quotes on Reading

Charlie Munger Quotes Charlie Munger Quotes on Reading Charlie Munger Quotes on Making Money Charlie Munger Quotes about Hard Work Charlie Munger Quotes about Evil Charlie Munger Quotes about Books Charlie Munger Quotes on Talent Charlie Munger Quotes on Technology Charlie Munger Quotes about Lying Charlie Munger Quotes about Values Charlie Munger Quotes on Capitalism Charlie Munger Quotes on Economics Charlie Munger Quotes about Human Nature Charlie Munger Quotes about Lawyers Charlie Munger Quotes on Psychology Charlie Munger Quotes on Wealth Charlie Munger Quotes about opportunity Charlie Munger Quotes about Arguing Charlie Munger Quotes Against a true Charlie Munger Quotes on Management  80+【Charlie Munger Quotes】- Investor & Businessman  Get The Best Collection of Charlie Munger Quotes. These Amazing Reading And Making Money Quotations Are About Books, Economics, Wealth, Management Etc.

…by regularly reading business newspaper and magazines I am exposed to an enormous amount of material at the micro level.. I find that what I see going on there pretty much informs me about what’s happening at the macro level.


Develop into a lifelong self-learner through voracious reading; cultivate curiosity and strive to become a little wiser every day.


If you get into the mental habit of relating what you’re reading to the basic structure of the underlying ideas being demonstrated, you gradually accumulate some wisdom.


If it is wisdom you’re after, you’re going to spend a lot of time on your ass reading.

Charlie Munger Quotes on Making Money

Mutual funds charge 2% per year and then brokers switch people between funds, costing another 3-4 percentage points. The poor guy in the general public is getting a terrible product from the professionals. I think it’s disgusting. It’s much better to be part of a system that delivers value to the people who buy the product. But if it makes money, we tend to do it in this country.


The idea of caring is that someone is making money faster [than you are] is one of the deadly sins. Envy is a really stupid sin because it’s the only one you could never possibly have any fun at. There’s a lot of pain and no fun. Why would you want to get on that trolley?


Quoting Demosthenes, ‘For what each man wishes, that he also believes to be true.’ I would rather make money playing a piano in a whorehouse than arguing that no cost is incurred when employees are paid in stock options instead of cash. I am not kidding.


Common stock investors can make money by predicting the outcomes of practice evolution. You can’t derive this by fundamental analysis – you must think biologically.

Charlie Munger Quotes about Hard Work

…People need to ask, “How do I play the hand that has been dealt me?” The world is not going to give you extra return just because you want it. You have to be very shrewd and hard working to get a little extra. It’s so much easier to reduce your wants. There are a lot of smart people and a lot of them cheat, so it’s not easy to win.


Hard work, honesty, if you keep at it, will get you almost anything.


If you’re going to be an investor, you’re going to make some investments where you don’t have all the experience you need. But if you keep trying to get a little better over time, you’ll start to make investments that are virtually certain to have a good outcome. The keys are discipline, hard work, and practice. It’s like playing golf – you have to work on it.


It’s not given to human beings to have such talent that they can just know everything about everything all the time. But it is given to human beings who work hard at it – who look and sift the world for a mispriced bet – that they can occasionally find one. And the wise ones bet heavily when the world offers them that opportunity. They bet big when they have the odds. And the rest of the time they don’t. It’s just that simple.

Charlie Munger Quotes about Evil

Avoid evil, particularly if they’re attractive members of the opposite sex.


You’ll better understand the evil when top audit firms started selling fraudulent tax shelters when I tell you that one told me that they’re better [than the others] because they only sold [the schemes] to their top-20 clients, so no-one would notice.


Well in the history of the See’s Candy Company they always say, “I never did it before, and I’m never going to do it again.” And we cashier them. It would be evil not to, because terrible behavior spreads.

Charlie Munger Quotes about Books

Everyone caved, adopted loose [accounting] standards, and created exotic derivatives linked to theoretical models. As a result, all kinds of earnings, blessed by accountants, are not really being earned. When you reach for the money, it melts away. It was never there. It [accounting for derivatives] is just disgusting. It is a sewer, and if I’m right, there will be hell to pay in due course. All of you will have to prepare to deal with a blow-up of derivative books.


In my whole life, I have known no wise people (over a broad subject matter area) who didn’t read all the time – none, zero. You’d be amazed at how much Warren reads – at how much I read. My children laugh at me. They think I’m a book with a couple of legs sticking out.


The stupid and dishonest accountants allowed the genie of totally inappropriate accounting to descend on derivatives books. And once this has happened – people get status, etc. – it’s impossible to get it back into the bottle.


I also want to raise the possibility that there are, in the very long term, “virtue effects” in economics- for instance that widespread corrupt accounting will eventually create bad long term consequences as a sort of obverse effect from the virtue-based boost double-entry book-keeping gave to the heyday of Venice. I suggest that when the financial scene starts reminding you of Sodomand Gomorrah, you should fear practical consequences even if you like to participate in what is going on.

Charlie Munger Quotes on Talent

The hedge fund known as “Long Term Capital Management” collapsed last fall through overconfidence in its highly leveraged methods, despite I.Q.’s of its principals that must have averaged 160. Smart people aren’t exempt from professional disasters from overconfidence. Often, they just run aground in the more difficult voyages they choose, relying on their self-appraisals that they have superior talents and methods.


No wise pilot, no matter how great his talent and experience, fails to use his checklist.


I think we have some special talents. That being said, I think it’s dangerous to rely on special talents – it’s better to own lots of monopolistic businesses with unregulated prices. But that’s not the world today. We have made money exercising our talents and will continue to do so.


It’s not given to human beings to have such talent that they can just know everything about everything all the time. But it is given to human beings who work hard at it – who look and sift the world for a mispriced bet – that they can occasionally find one. And the wise ones bet heavily when the world offers them that opportunity. They bet big when they have the odds. And the rest of the time they don’t. It’s just that simple.

Charlie Munger Quotes on Technology

If the technology hadn’t changed, they [newspapers] would still be great businesses. Network TV [in its heyday], anyone could run and do well. If Tom Murphy as running it, you’d do very well, but even your idiot nephew could do well. Fortunately, carbide cutting tools [such as those made by Iscar] don’t have these types of substitutes.


In Gillette’s case, they keep surfing along new technology which is fairly simple by the standards of microchips. But it’s hard for competitors to do. So they’ve been able to stay constantly near the edge of improvements in shaving.


The great lesson in microeconomics is to discriminate between when technology is going to help you and when it’s going to kill you. And most people do not get this straight in their heads. But a fellow like Buffett does. For example, when we were in the textile business, which is a terrible commodity business, we were making low-end textiles-which are a real commodity product. And one day, the people came to Warren and said, “They’ve invented a new loom that we think will do twice as much work as our old ones.”

Charlie Munger Quotes about Lying

If you have competence, you know the edge. It wouldn’t be a competence if you didn’t know where the boundaries lie. Asking whether you’ve passed the boundary is a question that almost answers itself.


Projections are put together by people who have an interest in a particular outcome, have a subconscious bias, and its apparent precision makes it fallacious. They remind me of Mark Twain’s saying, ‘A mine is a hole in the ground owned by a liar.’ Projections in America are often a lie, although not an intentional one, but the worst kind because the forecaster often believes them himself.


[GEICO] got to thinking that, because they were making a lot of money, they knew everything. And they suffered huge losses. All they had to do was to cut out all the folly and go back to the perfectly wonderful business that was lying there.

Charlie Munger Quotes about Values

We have a passion for keeping things simple.


The game of life is the game of everlasting learning. At least it is if you want to win.


Mutual funds charge 2% per year and then brokers switch people between funds, costing another 3-4 percentage points. The poor guy in the general public is getting a terrible product from the professionals. I think it’s disgusting. It’s much better to be part of a system that delivers value to the people who buy the product. But if it makes money, we tend to do it in this country.


Your life must focus on the maximization of objectivity.

Charlie Munger Quotes on Capitalism

The Internet bubble circa 2000 is the most extreme in modern capitalism. In the 1930s, we had the worst depression in 600 years. Today is almost as extreme in the opposite way.


You’ll find many markets where bottlers of Pepsi and Coke both make a lot of money and many others where they destroy most of the profitability of the two franchises. That must get down to the peculiarities of individual adjustment to market capitalism. I think you ‘d have to know the people involved to fully understand what was happening.


When it gets into these spikes, with shortages and uproar and so forth, people go bananas, but that’s capitalism.


Early Charlie Munger is a horrible career model for the young, because not enough was delivered to civilization in return for what was wrested from capitalism. And other similar career models are even worse.

Charlie Munger Quotes on Economics

The cash register did more for human morality than the Congregational Church. It was a really powerful phenomenon to make an economic system work better, just as, in reverse, a system that can be easily defrauded ruins a civilization. A system that’s very hard to defraud, like a cash register, helped the economic performance of a civilization by reducing vice, but very few people within economics talk about it in those terms.


How should the best parts of psychology and economics interrelate in an enlightened economist’s mind?… I think that these behavioural economics…or economists are probably the ones that are bending them in the correct direction. I don’t think it’s going to be that hard to bend economics a little to accommodate what’s right in psychology.


Berkshire’s whole record has been achieved without paying one ounce of attention to the efficient market theory in its hard form. And not one ounce of attention to the descendants of that idea, which came out of academic economics and went into corporate finance and morphed into such obscenities as the capital asset pricing model, which we also paid no attention to. I think you’d have to believe in the tooth fairy to believe that you could easily outperform the market by seven-percentage points per annum just by investing in high volatility stocks.


I have concluded that most PhD economists under appraise the power of the common-stock-based “wealth effect,” under current extreme conditions… “Wealth effects” involve mathematical puzzles that are not nearly so well worked out as physics theories and never can be… What has happened in Japan over roughly the last ten years has shaken up academic economics, as it obviously should, creating strong worries about recession from “wealth effects” in reverse.

Charlie Munger Quotes about Human Nature

It’s human nature to extrapolate the recent past into the future, but it’s terrible that managements go along with this.


Berkshire was built on the eternal verities: basic mathematics, basic horse sense, basic fear, and basic diagnosis of human nature to make predictions regarding human behavior. We stuck to the basics with a certain amount of discipline and it has worked out quite well.


With so much money riding on reported numbers, human nature is to manipulate them. And with so many doing it, you get Serpico effects, where everyone rationalizes that it’s okay because everyone else is doing it. It is always thus.

Charlie Munger Quotes about Lawyers

“[Lawyers who file class-action securities suits] is not a group you would want to marry into your family. “That said, more than half the time the people being sued by the Lerach firm are guilty of outrageous conduct. The problem is, they don’t mind (suing) the other half. They are an equal opportunity litigator.”


To finish first you have to first finish. Don’t get in a position where you go back to go. What’s interesting is that some guy whose grandfather was a lawyer and a judge-hurriedly going to Harvard Law with a wave of veterans-I was willing to go into so many different businesses. I was constantly going right into the other fellow’s business and doing better than the other fellow did. The reason it was possible? Self-education- developing mental discipline, big ideas that really work.


Accounting incomes were reduced by discrepancy [ but] “the net amount paid by lawyers for lawyerly discrepancy is close to zippo. In this case, the goddess of justice was blind.


With Congress and the S.E.C. so heavily peopled by lawyers, and with lawyers having been so heavily involved in drafting financial disclosure documents now seen as bogus, there was a new “lawyer” joke every week. One such was: “The butcher says ‘the reputation of lawyers has fallen dramatically’, and the check-out clerk replies: “How do you fall dramatically off a pancake?

Charlie Munger Quotes on Psychology

The possibility that stock value in aggregate can become irrationally high is contrary to the hard-form “efficient market” theory that many of you once learned as gospel from your mistaken professors of yore. Your mistaken professors were too much influenced by “rational man” models of human behaviour from economics and too little by “foolish man” models from psychology and real-world experience.


How should the best parts of psychology and economics interrelate in an enlightened economist’s mind?… I think that these behavioural economics…or economists are probably the ones that are bending them in the correct direction. I don’t think it’s going to be that hard to bend economics a little to accommodate what’s right in psychology.


I don’t have too much interest in teaching other people how to get rich. And that isn’t because I fear the competition or anything like that – Warren has always been very open about what he’s learned, and I share that ethos. My personal behaviour model is Lord Keynes: I wanted to get rich so I could be independent, and so I could do other things like give talks on the intersection of psychology and economics. I didn’t want to turn it into a total obsession.

Charlie Munger Quotes on Wealth

We’ve had the most massive creation of wealth for people a lot younger than those who formerly got wealth in the history of the world. The world is full of young people who really want to get rich, and when I left school nobody thought it was a reasonable possibility.


Determine value apart from price; progress apart from activity; wealth apart from size.


I have concluded that most PhD economists under appraise the power of the common-stock-based “wealth effect,” under current extreme conditions… “Wealth effects” involve mathematical puzzles that are not nearly so well worked out as physics theories and never can be… What has happened in Japan over roughly the last ten years has shaken up academic economics, as it obviously should, creating strong worries about recession from “wealth effects” in reverse.


If you took our top fifteen decisions out, we’d have a pretty average record. It wasn’t hyperactivity, but a hell of a lot of patience. You stuck to your principles and when opportunities came along, you pounced on them with vigor.

Charlie Munger Quotes about opportunity

Opportunity cost is a huge filter in life. If you’ve got two suitors who are really eager to have you and one is way the hell better than the other, you do not have to spend much time with the other. And that’s the way we filter out buying opportunities.


It takes character to sit there with all that cash and do nothing. I didn’t get to where I am by going after mediocre opportunities.


Obviously, consideration of costs is key, including opportunity costs. Of course capital isn’t free. It’s easy to figure out your cost of borrowing, but theorists went bonkers on the cost of equity capital. They say that if you’re generating a 100% return on capital, then you shouldn’t invest in something that generates an 80% return on capital. It’s crazy.


If you took our top fifteen decisions out, we’d have a pretty average record. It wasn’t hyperactivity, but a hell of a lot of patience. You stuck to your principles and when opportunities came along, you pounced on them with vigor.

Charlie Munger Quotes about Arguing

What matters most: passion or competence that was born in? Berkshireis full of people who have a peculiar passion for their own business. I would argue passion is more important than brain power.


I would argue that a majority of the horrors we face would not have happened if the accounting profession developed and enforced better accounting.


Quoting Demosthenes, ‘For what each man wishes, that he also believes to be true.’ I would rather make money playing a piano in a whorehouse than arguing that no cost is incurred when employees are paid in stock options instead of cash. I am not kidding.


Creative accounting is an absolute curse to a civilization. One could argue that double-entry bookkeeping was one of history’s great advances. Using accounting for fraud and folly is a disgrace.

Charlie Munger Quotes Against a true

How do you compete against a true fanatic? You can only try to build the best possible moat and continuously attempt to widen it.

Charlie Munger Quotes on Management

It’s natural that you’d have more brains going into money management. There are so many huge incomes in money management and investment banking – it’s like ants to sugar. There are huge incentives for a man to take up money management as opposed to, say, physics, and it’s a lot easier.


Understanding how to be a good investor makes you a better business manager and vice versa.


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It’s my guess that something like 5% of GDP goes to money management and itsattendant friction. I define it broadly – annuities, incentive pay, all trading, etc. Nobody else has used figures that high, but that’s my guess. Worst of all, the people doing this are among the best and the brightest. Hundreds and thousands of engineers, etc. are going into hedge funds and investment banking. That is not an intelligent allocation of the brainpower of the civilization.


I regard the amount of brainpower going into money management as a national scandal. When some idiot would get rich, they’d say, ‘Well, old Charlie was out in the field playing the big brass tuba on the day it rained gold.’ A lot of people have become rich lately who were playing the tuba on the day it rained gold.