effects,” and thinking is no exception. The best defense is that of the best physicists, who systematically criticize themselves to an extreme degree, using a mindset described by Nobel laureate Richard Feynman as follows: “The first principle is that you must not fool yourself and you’re the easiest person to fool.” http://72.14.203.104/search?q=cache:mgSaxC3O1IoJ:www.philanthropyroundtable.org/magazines/1999/march/munger.html+Berkshire+Hathaway%27s+vice+chairman+shreds+the+conventional+wisdom+on+foundation+investing&hl=en&gl=us&ct=clnk&cd=1
“Warrenspends 70 hours a week thinking about investing http://www.tilsonfunds.com/
“Invert, always invert.” https://www.poorcharliesalmanack.com/
“People calculate too much and think too little.” http://money.cnn.com/magazines/moneymag/moneymag_archive/2002/07/01/324974/index.htm
“The ethical rule is from Samuel Johnson who believed that maintenance of easily removable ignorance by a responsible office holder was treacherous malfeasance in meeting moral obligation. The prudential rule is that underlying the old Warner & Swasey advertisement for machine tools: “The man who needs a new machine tool, and hasn’t bought it, is already paying for it”. The Warner & Swasey rule also applies, I believe, to thinking tools. If you don’t have the right thinking tools, you, and the people you seek to help, are already suffering from your easily removable ignorance.” http://www.tilsonfunds.com/Mungerwritings2001.pdf#search=%22%20%22charlie%20Munger%22%20Outstanding%20investor%20digest%22
Thrift:
“This room contains many people pretty well stricken by expired years — in my generation or the one following. We tend to believe in thrift and avoiding waste as good things, a process that has worked well for us. It is paradoxical and disturbing to us that economists have long praised foolish spending as a necessary ingredient of a successful economy. http://www.tilsonfunds.com/Mungerwritings2001.pdf#search=%22%20%22charlie%20Munger%22%20Outstanding%20investor%20digest%22
Trust
“…Everybody likes being appreciated and treated fairly, and dominant personalities who are capable of running a business like being trusted. A kid trusted with the key to thecomputer room said, “It’s wonderful to be trusted.” That’s how we operate Berkshire– a seamless web of deserved trust. We get rid of the craziness, of people checking to make sure it’s done right. When you get a seamless web of deserved trust, you get enormous efficiencies. … Every once in a while, it doesn’t work, not because someone’s evil but because somebody drifts to inappropriate behavior and then rationalizes it….” http://www.tilsonfunds.com/wscmtg05notes.pdf
United States:
“…Over the long term, the eclipse rate of great civilizations being overtaken is 100%. So you know how it’s going to end. (Laughter) I’m more optimistic about the staying power of what’s good in this country. But just because you have a wonderful spouse doesn’t mean you should treat her badly. You have the feeling that some of the old virtues [that made this country great] are lessening. But there’s so much good and so much strength left that I would not expect this country to suddenly founder…” http://www.tilsonfunds.com/wscmtg05notes.pdf
“I still prefer this country, and so does Warren. But we’re both troubled deeply by the twin deficits [trade and budget]. [Bad] Things can go on for a long time, starting from our [wealthy] base and especially if other counties have things wrong with them, so it’s a very complex subject.” http://www.tilsonfunds.com/wscmtg04notes.doc
“I believe that we are at or near the apex of a great civilization….In 50-100 years, if we’re a poor third to some countries in
Asia, I wouldn’t be surprised. If I had to bet, the part of the world that will do best will be
Asia.” http://www.tilsonfunds.com/brkmtg05notes.pdf
“It’s crazy to assume that what’s happening in Argentina and Japan is inconceivable here. It’s not.” http://www.tilsonfunds.com/
Values:
“While no real money came down, my family gave me a good education and a marvelous example of how people should behave, and in the end that was more valuable than money. Being surrounded by the right values from the beginning is an immense treasure.
Warrenhad that. It even has a financial advantage.” Damn Right at 5 http://www.wiley.com/WileyCDA/WileyTitle/productCd-0471446912,descCd-tableOfContents.html
Value Investing:
“The whole concept of dividing it up into ‘value’ and ‘growth’ strikes me as twaddle. It’s convenient for a bunch of pension fund consultants to get fees prattling about and a way for one advisor to distinguish himself from another. But, to me, all intelligent investing is value investing.” http://www.ticonline.com/archives_quotes.html
“All intelligent investing is value investing.” http://www.fool.com/news/foth/2000/foth001107.htm
Venture Capital:
“Harvard and Yale concentrated with venture capitalists that got the best calls and brainpower. Very few firms made most of the money, and they made it in just a few periods. Everyone else returned between mediocre and lousy. When returns happened, envy rippled through institutional money management. The amount invested in venture capital went up 10 times post-1999. That later money was lost very quickly. It will happen again. I don’t know anyone who successfully resists this stuff. It becomes a new orthodoxy.” http://news.morningstar.com/article/article.asp?id=169398
Victimization:
“Whenever you think something or some person is ruining your life, it’s you. A victimization mentality is so debilitating.” http://www.tilsonfunds.com/
Warren Buffett:
“It is true that Warrenhad a touch of brain block from working under Ben Graham and making a ton of money – it’s hard to switch from something that’s worked so well. But if Charlie Munger had never lived, the Buffett record would still be pretty much what it is.” http://www.tilsonfunds.com/wscmtg04notes.doc
“I think the top guy won’t be as smart as Warren. But it’s silly to complain: “What kind of world is this that gives me Warren Buffett for 40 years and then some bastard comes along who’s worse?” [Laughter]” http://www.tilsonfunds.com/wscmtg04notes.doc
“Speaking for the Munger heirs, I hope they continue to ring the last drop of good out of Warren.” http://www.designs.valueinvestorinsight.com/bonus/bonuscontent/docs/Tilson_2006_BRK_Meeting_Notes.pdf#search=%22Charlie%20munger%20and%20foundation%20and%20croupier%22
“I’ve been associated with Warren ( Buffett) so long, I thought I’d be just a footnote.” http://media.wiley.
