Home / Quotes / Quote by Charlie Munger

Quote by Charlie Munger

“I think there's an awful lot of twaddle and bullshit on EVA. The whole game is to turn retained earnings into more earnings. EVA has ideas about cost of capital that make no sense. Of course, if a company generates high returns on capital and can maintain this over time, it will do well. But the mental system as a whole does not work.”

Quote by Charlie Munger

Author

Charlie Munger, born on January 1, 1924, is a distinguished business person known for his investment philosophy and partnership with Warren Buffett at Berkshire Hathaway. He has been a significant influence in the field of finance and investing, contributing to the success of the company over the years. more

You May Also Like

“...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.”

People World Want Needs Giving Littles Has Beens Hard Play Hands Asks Winning Easy Hard Work Return Easier Smart Extras Cheat Smart People

Author:Charlie Munger

“One of the smartest things a person can do is dampen investment expectations, especially with Berkshire. That would be mature and responsible. I like our model and we should do nicely”

Should Persons Would Be Can Do Models Expectations Responsible Investment Mature

Author:Charlie Munger

“I've heard that one-half of the students at elite schools want to go into private equity or hedge funds. They want to keep up with their age cohorts at Goldman. This can't possibly end well in terms of meeting these expectations.”

Want Wells Ends Age School Term Half Heard Students Expectations Meetings Fund Elites Equity One Half Hedge Fund Private Equity

Author:Charlie Munger

“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.”

Ifs Needs Trying Littles Hard Certain Practice Hard Work Keys Discipline Golf Investment Outcomes Investors Keep Trying Playing Golf

Author:Charlie Munger

“... some important factor doesn't lose its "share of force" just because some "expert" can better measure other types of force.”

Important Force Loses Share Type Factors Experts

Author:Charlie Munger

“If it happens every year like clockwork, what's so extraordinary about it?”

Ifs Years Happens Extraordinary Clockwork

Author:Charlie Munger

“Avoid evil, particularly if they're attractive members of the opposite sex.”

Ifs Evil Sex Members Opposites Attractive

Author:Charlie Munger

“Tthe first rule is that you can't really know anything if you just remember isolated facts and try and bang 'em back. If the facts don't hang together on a latticework of theory, you don't have them in a usable form.... You may have noticed students who just try to remember and pound back what is remembered. Well, they fail in school and in life.”

Ifs Knows Trying Firsts Wells May Facts School Together Remember Form Failing Students Theory Remembered Ems Pounds Isolated Bangs

Author:Charlie Munger

“An idea or a fact is not worth more merely because it's more available to you.”

Ideas Facts Available

Author:Charlie Munger

“You don't want to be like the motion picture exec who had so many people at his funeral, but they were there just make sure he was dead. Or how about the guy who, at his funeral, the priest said, "Won't anyone stand up and say anything nice for the deceased?" and finally someone said, "Well, his brother was worse."”

People Want Wells Said Guy Nice Brother Priests Funeral Say Anything Motion Pictures Deceased

Author:Charlie Munger