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Quote by Charlie Munger

“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.”

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

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“We're guessing at our future opportunity cost. Warrenis guessing that he'll have the opportunity to put capital out at high rates of return, so he's not willing to put it out at less than 10% now. But if we knew interest rates would stay at 1%, we'd change. Our hurdles reflect our estimate of future opportunity costs.”

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“It's not the bad ideas that do you in, but the good ones.”

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“I'm very pleased when the smartest people come [to the U.S.] and almost never pleased when the very bottom of the mental barrel comes in.”

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“We have never had the will to enforce the immigration laws. What you see is what you'll continue to get.”

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“Expect hogs to eat a lot more in the presence of a lot of hog wash.”

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“If you want good behavior, don't pay on a commission basis. Our judges aren't paid so much a case. We keep them pretty well isolated with a fixed salary. Judges in this whole thing have come out pretty well - there have been relatively few scandals.”

Ifs Want Wells Has Beens Whole Pay Cases Judging Behavior Bases Paid Fixed Isolated Scandal Salary Good Behavior

Author:Charlie Munger

“Our standard prescription for the know-nothing investor with a long-term time horizon is a no-load index fund. I think that works better than relying on your stock broker. The people who are telling you to do something else are all being paid by commissions or fees. The result is that while index fund investing is becoming more and more popular, by and large it's not the individual investors that are doing it. It's the institutions.”

“[With] closet indexing....you're paying a manager a fortune and he has 85% of his assets invested parallel to the indexes. If you have such a system, you're being played for a sucker.”

Ifs Fortune Managers Assets Closets Parallels Sucker Being Played Indexing

Author:Charlie Munger

“One could imagine a period like Japan13 years ago, however, in which indexing over time wouldn't work.”

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Author:Charlie Munger

“I think democracies are prone to inflation because politicians will naturally spend [excessively] - they have the power to print money and will use money to get votes. If you look at inflation under the Roman Empire, with absolute rulers, they had much greater inflation, so we don't set the record. It happens over the long-term under any form of government.”

Ifs Thinking Looks Long Use Government Happens Form Term Democracy Records Greater Politician Vote Absolutes Long Term Empires Print Rulers Inflation Forms Of Government Roman Empire

Author:Charlie Munger