Popular quotes from Charlie Munger
Charlie Munger is an US investor and works as the right hand of Warren Buffett. He is Vice Chairman at Berkshire Hathaway since 1978.
“I think that, every time you see the word EBITDA, you should substitute the words "bullshit earnings".”
“The great algorithm to remember in dealing with this tendency is simple: an idea or a fact is not worth more merely because it’s easily available to you.”
“We have three baskets: in, out, and too tough. … We have to have a special insight, or we’ll put it in the “too tough” basket.”
“The best armour of old age is a well spent life preceding it.”
“Mimicking the herd invites regression to the mean (merely average performance).”
“In my whole life, I have known no wise people (over a board subject matter area) who didn't read all the time - none, zero. You'd be amazed how much Warren reads - and at how much I read. My children laugh at me. They think I'm a book with a couple of legs sticking out.”
“If you don’t get this elementary, but mildly unnatural, mathematics of elementary probability into your repertoire, then you go through a long life like a one-legged man in an ass-kicking contest.”
“If something is too hard, we move on to something else. What could be simpler than that?”
“The best armour of old age is a well spent life perfecting it.”
“All I want to know is where I'm going to die so I'll never go there.”
“The iron rule of nature is: you get what you reward for. If you want ants to come, you put sugar on the floor.”
“Remember that reputation and integrity are your most valuable assets—and can be lost in a heartbeat.”
“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?”
“I believe in the discipline of mastering the best that other people have ever figured out. I don’t believe in just sitting down and trying to dream it all up yourself. Nobody’s that smart.”
“Go to bed smarter than when you woke up.”
“People calculate too much and think too little.”
“What are the secret of success? - one word answer: "rational".”
“Develop into a lifelong self-learner through voracious reading; cultivate curiosity and strive to become a little wiser every day.”
“I constantly see people rise in life who are not the smartest, sometimes not even the most diligent, but they are learning machines. They go to bed every night a little wiser than they were when they got up and boy does that help, particularly when you have a long run ahead of you.”
“It takes character to sit with all that cash and to do nothing. I didn't get top where I am by going after mediocre opportunities.”
“We all are learning, modifying, or destroying ideas all the time. Rapid destruction of your ideas when the time is right is one of the most valuable qualities you can acquire. You must force yourself to consider arguments on the other side.”
“Acquire worldly wisdom and adjust your behavior accordingly. If your new behavior gives you a little temporary unpopularity with your peer group… then to hell with them.”
“There is no better teacher than history in determining the future... There are answers worth billions of dollars in 30$ history book.”
“How to find a good spouse? -the best single way is to deserve a good spouse.”
“We both (Charlie Munger and Warren Buffett) insist on a lot of time being available almost every day to just sit and think. That is very uncommon in American business. We read and think.”
“Spend each day trying to be a little wiser than you were when you woke up. Day by day, and at the end of the day-if you live long enough-like most people, you will get out of life what you deserve.”
“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--and at how much I read. My children laugh at me. They think I'm a book with a couple of legs sticking out.”
“Own your work and compound credibility.”
“The reason we avoid the word "synergy" is because people generally claim more synergistic benefits than will come. Yes, it exists, but there are so many false promises. Berkshire is full of synergies - we don't avoid synergies, just claims of synergies.”
“It's the work on your desk. Do well with what you already have and more will come in.”
“To get what you want, you have to deserve what you want. The world is not yet a crazy enough place to reward a whole bunch of undeserving people.”
“Forgetting your mistakes is a terrible error if you’re trying to improve your cognition. Reality doesn’t remind you. Why not celebrate stupidities in both categories?”
“An example of a really responsible system is the system the Romans used when they built an arch. The guy who created the arch stood under it as the scaffolding was removed. It’s like packing your own parachute.”
“Crowd folly, the tendency of humans, under some circumstances, to resemble lemmings, explains much foolish thinking of brilliant men and much foolish behavior.”
“It’s not possible for investors to consistently outperform the market. Therefore you’re best served investing in a diversified portfolio of low-cost index funds [or exchange-traded funds].”
“We both insist on a lot of time being available almost every day to just sit and think. That is very uncommon in American business. We read and think. So Warren and I do more reading and thinking and less doing than most people in business.”
“Warren talks about these discounted cash flows. I’ve never seen him do one.”
