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Quote by Charlie Munger

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

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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“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

“...in terms of business mistakes that I've seen over a long lifetime, I would say that trying to minimize taxes too much is one of the great standard causes of really dumb mistakes. I see terrible mistakes from people being overly motivated by tax considerations. Warren and I personally don't drill oil wells. We pay our taxes. And we've done pretty well, so far. Anytime somebody offers you a tax shelter from here on in life, my advice would be don't buy it.”

People Trying Wells Long Done Would Be Causes Term Pay Mistake Too Much Advice Terrible Offers Taxes Standards Lifetime Oil Dumb Consideration Motivated Shelter Long Life Drills Really Dumb

Author:Charlie Munger

“To atone, I teach and try to set an example... I love spreading this stuff around. Just because it's trite doesn't mean it isn't right. In fact, I like to say, 'If it's trite, it's right.'”

Ifs Trying Mean Facts Stuff Teach Example

Author:Charlie Munger

“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 - Warrenhas always been very open about what he's learned, and I share that ethos. My personal behavior 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.”

“We only want what success we can get despite encouraging others to share our general view about reality.”

Want Reality Views Share Despite Encouraging Others

Author:Charlie Munger

“For society, the Internet is wonderful, but for capitalists, it will be a net negative. It will increase efficiency, but lots of things increase efficiency without increasing profits. It is way more likely to make American businesses less profitable than more profitable. This is perfectly obvious, but very little understood.”

Way Littles Wonderful Internet Understood Negative Increase Profit Obvious Capitalist Efficiency Profitable American Business

Author:Charlie Munger

“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.”

Hard Able Simple Cases Technology Standards Edges Improvement Competitors Surfing New Technology Shaving Microchips

Author:Charlie Munger

“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.”

Ifs Wells Made Stills Running Technology Cutting Changed Tvs Type Tools Newspapers Idiot Substitutes Toms Murphy Nephew Great Business Heyday

Author:Charlie Munger

“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."”

People Thinking Doe Said Real Ends Helping Technology Example Products Terrible Lessons One Day Lows Fellows Commodity Buffett Textiles Microeconomics

Author:Charlie Munger