Charlie Munger, an iconic figure in the realm of investing, has recently left us at the age of 99. Exploring the teachings of the world’s Investment Masters, Munger’s unparalleled knowledge and insights have left a lasting impact on me. Having attended numerous Berkshire Meetings, I had the privilege of experiencing firsthand his unique blend of humor and profound wisdom.
Curating a list of just ten quotes from Munger’s extensive reservoir of wisdom proved to be a daunting task, given the breadth and wealth of insights he generously shared. The following quotes have played a pivotal role in shaping my investment philosophy. RIP Charlie Munger, a hero of mine.
Reading
“In my whole life, I have known no wise people (over a broad subject matter area) who didn’t read all the time — none, zero.”
Incentives
“I think I’ve been in the top 5% of my age cohort all my life in understanding the power of incentives, and all my life I’ve underestimated it. And never a year passes but I get some surprise that pushes my limit a little farther.”
Psychology
“Of all the models that people ought to have in useful form and don’t perhaps the most important lie in the area of psychology.”
Find ‘Holds’
“I’m no good at exits. I don’t like even looking for exits. I’m looking for holds. Think of the pleasure I’ve got from watching Costco march ahead. Such an utter meritocracy and it does so well, why would I trade that experience for a series of transactions? I’d be less rich not more after taxes. The second place is a much less satisfactory life than rooting for people I like and admire. So I say find Costco’s, not good exits.”
Economics
“God knows where the world is headed. I just think that one way or another, the world muddles through.”
Macro-Economic Forecasts
“A great philosopher said ‘A man never steps into the same river twice, the man is different and so is the river when he goes in the second time.’ That’s the trouble with economics. It’s not like physics. The same damn recipe done a different time gets a different result.”
Simple Idea
‘Take a simple idea and take it seriously’.
Multi-disciplinary
“It’s kind of fun to sit there and out think people who are way smarter than you are because you’ve trained yourself to be more objective and more multi-disciplinary. Furthermore, there is a lot of money in it, as I can testify from my own personal experience.”
Lollapalooza Effects
“Really big effects, lollapalooza effects, will often come only from large combinations of factors.”
High Quality Businesses
“We’ve really made the money out of high quality businesses. In some cases, we bought the whole business. And in some cases, we just bought a big block of stock. But when you analyze what happened, the big money’s been made in the high quality businesses. And most of the other people who’ve made a lot of money have done so in high quality businesses.”
Follow us on Twitter : @mastersinvest
* Visit the Blog Archive *
Article by Investment Masters Class
