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Quote by Charlie Munger

“To say accounting for derivatives is Americais a sewer is an insult to sewage.”

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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“If mutual fund directors are independent, then I'm the lead character in the Bolshoi Ballet.”

Ifs Character Directors Independent Fund Mutual Ballet Mutual Fund Lead Characters

Author:Charlie Munger

“A director who gets $150,000 per year from a company and needs the money is not independent.”

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“I think it would be a great improvement if there were no D&O insurance . The counter-argument is that no-one with any money would serve on a board. But I think net net you'd be better off.”

Ifs Thinking Would Be Argument Improvement Boards Better Off

Author:Charlie Munger

“The Berkshire-style investors tend to be less diversified than other people. The academics have done a terrible disservice to intelligent investors by glorifying the idea of diversification. Because I just think the whole concept is literally almost insane. It emphasizes feeling good about not having your investment results depart very much from average investment results. But why would you get on the bandwagon like that if somebody didn't make you with a whip and a gun?”

People Ifs Thinking Ideas Done Whole Feelings Results Style Terrible Gun Concepts Intelligent Investment Average Feel Good Insane Investors Whips Disservice Diversification Bandwagon

Author:Charlie Munger

“The idea of excessive diversification is madness.”

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Author:Charlie Munger

“The total amount paid out in dividends is roughly equal to the amount lost in trading and investment advice, so net dividends to shareholders are zero. This is a very peculiar way to run a republic.”

Way Running Lost Advice Amount Equal Paid Investment Zero Republic Peculiar Trading Dividends Shareholders

Author:Charlie Munger

“If you, like me, lived through 1973-74 or even the early 1990s... There was a waiting list to get OUT of the country club - that's when you know things are tough. If you live long enough, you'll see it.”

Ifs Knows Long Country Enough Waiting Tough Clubs Lists Like Me Country Clubs If You Like Me

Author:Charlie Munger

“It is an unfortunate fact that great and foolish excess can come into prices of common stocks in the aggregate. They are valued partly like bonds, based on roughly rational projections of use value in producing future cash. But they are also valued partly like Rembrandt paintings, purchased mostly because their prices have gone up, so far.”

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Author:Charlie Munger

“Economists get very uncomfortable when you talk about virtue and vice. It doesn't lend itself to a lot of columns with numbers. But I would argue that there are big virtue effects in economics. I would say that the spreading of double-entry bookkeeping by the Monk, Fra Luce de Pacioli, was a big virtue effect in economics. It made business more controllable, and it made it more honest.”

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“I think the main figure that matters to all of us, including people in the media, is: How does GDP per capita grow? And those figures have been very good. There is a huge flux both up and down, so it isn't like we're all static in status. What's important is that pie grows.”

People Thinking Doe Has Beens Important Matter Grows Media Figures Huge Including Very Good Pie Up And Down Static What's Important Flux Gdp

Author:Charlie Munger