“Using volatility as a measure of risk is nuts. Risk to us is 1) the risk of permanent loss of capital, or 2) the risk of inadequate return.” LossRiskReturnPermanentNutsInadequateVolatility Author:Charlie Munger
“The house wife is an unpaid employee in her husband's house in return for the security of being a permanent employee.” HouseWifeSecurityReturnHusbandPermanentEmployee Author:Germaine Greer
“We regard using [a stock's] volatility as a measure of risk is nuts. Risk to us is 1) the risk of permanent loss of capital, or 2) the risk of inadequate return. Some great businesses have very volatile returns - for example, See's [a candy company owned by Berkshire] usually loses money in two quarters of each year - and some terrible businesses can have steady results.” YearsTwoLosesLossResultsCompanyRiskExampleReturnTerriblePermanentNutsQuartersSteadyCandyInadequateGreat BusinessVolatility Author:Charlie Munger
“I sustained an injury by singing with the flu during the second performance of Andrea Chenier in Buenos Aires. I was very sick, with chills and sweats, but against my better judgement I let them talk me into singing. Of course I gave the performance everything I had and my voice was hurt. It was scary at first, but fortunately there was no permanent damage. I just had to be patient and wait for the voice to return. It took six weeks of physical recuperation and it took time to recover my confidence as well.” FirstsWellsCoursesWaitingVoiceHurtWeekReturnSixSingingPerformancesSickPatientScaryPermanentJudgementDamageInjurySweatChillBe PatientFluAndreaBuenos AiresRecuperation Author:Ben Heppner
“As I have mentioned before, we cannot make the same sort of money out of permanent ownership of controlled businesses that can be made from buying and reselling such businesses, or from skilled investment in marketable securities. Nevertheless, they offer a pleasant long term form of activity (when conducted in conjunction with high grade, able people) at satisfactory rates of return.” PeopleLongMadeAbleFormTermSecurityReturnOffersActivityInvestmentRatePermanentLong TermPleasantBuyingGradesControlledOwnershipNeverthelessConjunctions Author:Warren Buffett