Home / Quotes / Quote by Charlie Munger

Quote by Charlie Munger

“How should the best parts of psychology and economics interrelate in an enlightened economist's mind?... I think that these behavioral economics...or economists are probably the ones that are bending them in the correct direction. I don't think it's going to be that hard to bend economics a little to accommodate what's right in psychology.”

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

“There is the sheer amount of Franklin's wisdom. And the talent. Franklin played four instruments. He was the nation's leading scientist and inventor, plus a leading author, statesman, and philanthropist. There has never been anyone like him.”

Nations Four Talent Amount Scientist Instruments Plus Sheer Inventor Statesmen Franklin Philanthropist

Author:Charlie Munger

“I'm a bull on Berkshire Hathaway. There may be some considerable waiting, but I think there are some good days ahead.”

Thinking May Waiting Bulls Good Day

Author:Charlie Munger

“Berkshire has the lowest turnover of any major company in the U.S.The Walton family owns more of Wal-Mart than Buffett owns of Berkshire, so it isn't because of large holdings. It's because we have a really unusual shareholder body that thinks of itself as owners and not holders of little pieces of paper.”

Thinking Littles Body Company Pieces Paper Majors Owners Unusual Lowest Shareholders Buffett Turnover

Author:Charlie Munger

“Berkshireis not as good as it was in terms of percentage compounding [going forward], but it's still a hell of a business.”

Stills Term Hell Percentages

Author:Charlie Munger

“Beta and modern portfolio theory and the like - none of it makes any sense to me.”

Modern Theory Portfolios Beta

Author:Charlie Munger

“The wisdom and experience of older people is a resource of inestimable worth. Recognizing and treasuring the contributions of older people is essential to the long-term flourishing of any society.”

People Long Term Essentials Resources Long Term Contribution Recognizing Flourishing Older People Wisdom And Experience

Author:Daisaku Ikeda

“Common stock investors can make money by predicting the outcomes of practice evolution. You can't derive this by fundamental analysis - you must think biologically.”

Thinking Common Practice Evolution Fundamentals Making Money Analysis Outcomes Investors Predicting

Author:Charlie Munger

“Black-Scholes is a know-nothing system. If you know nothing about value - only price - then Black-Scholes is a pretty good guess at what a 90-day option might be worth. But the minute you get into longer periods of time, it's crazy to get into Black-Scholes. For example, at Costco we issued stock options with strike prices of $30 and $60, and Black-Scholes valued the $60 ones higher. This is insane.”

Ifs Knows Might Values Black Crazy Minutes Example Higher Periods Strikes Insane Scholes Costco Stock Options

Author:Charlie Munger

“Black-Scholes works for short-term options, but if it's a long-term option and you think you know something [about the underlying asset], it's insane to use Black-Scholes.”

Ifs Thinking Knows Long Use Black Term Insane Long Term Assets Short Term You Think You Know Scholes

Author:Charlie Munger

“A board member should be perfectly willing to leave at any time and willing to make the tough calls.”

Should Willing Members Tough Boards Board Members

Author:Charlie Munger