Home / Quotes / Quote by Charlie Munger

Quote by Charlie Munger

“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.”

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

“[In picking stocks] You really have to know a lot about business. You have to know a lot about competitive advantage. You have to know a lot about the maintainability of competitive advantage. You have to have a mind that quantifies things in terms of value. And you have to be able to compare those values with other values available in the stock market.”

Knows Mind Able Values Term Advantage Available Compare Competitive Advantage

Author:Charlie Munger

“It would be nice if this [finding really cheap stocks] happened all the time. Unfortunately, it doesn't.”

Ifs Would Be Nice Happened Findings Being Nice

Author:Charlie Munger

“To some extent, stocks are like Rembrandts. They sell based on what they've sold in the past. Bonds are much more rational. No-one thinks a bond's value will soar to the moon.”

Thinking Past Values Moon Sells Rational Soar

Author:Charlie Munger

“Failure to handle psychological denial is a common way for people to go broke: you have made an enormous commitment to something. You have poured effort and money in. And the more you put in, the more that the whole consistency principle makes you think, "Now it has to work. If I put in just a little more, then it will work."”

People Thinking Way Made Whole Common Effort Principles Commitment Enormous Handle Psychological Broke Denial Consistency Make You Think

Author:Charlie Munger

“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.”

People Reason Promise Benefits Claims Synergy False Promises

Author:Charlie Munger

“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.”

Thinking World Made Said Today Special Talent Dangerous Exercise Rely World Today Special Talents

Author:Charlie Munger

“The tax code gives you an enormous advantage if you can find some things you can just sit with.”

Ifs Giving Taxes Advantage Enormous Code

Author:Charlie Munger

“We don't have any miraculous way of avoiding taxes at Wesco and Berkshire.”

Way Taxes Avoiding Miraculous

Author:Charlie Munger

“Even if you assume that the whole economy would work better had we never had double taxation, having the envy and resentment of the richest paying low or no taxes screams of injustice. You have to have a fair system.”

Ifs Whole Economy Taxes Lows Fairs Assuming Injustice Envy Scream Resentment Taxation

Author:Charlie Munger

“If you're going to buy something which compounds for 30 years at 15% per annum and you pay one 35% tax at the very end, the way that works out is that after taxes, you keep 13.3% per annum. In contrast, if you bought the same investment, but had to pay taxes every year of 35% out of the 15% that you earned, then your return would be 15% minus 35% of 15%-or only 9.75% per year compounded. So the difference there is over 3.5%. And what 3.5% does to the numbers over long holding periods like 30 years is truly eye-opening.”

Ifs Way Years Long Doe Ends Would Be Eye Differences Numbers Pay Return Periods Taxes Investment Work Out Opening Contrast Compounds Minus Eye Opening

Author:Charlie Munger