Money and Finance
- Charlie Munger On Opportunity Costs
From the 2005-2013 collection of Munger notes: I just wanted to do the best I could reasonably do with the talent, time and resources I had available. That’s what I was doing then and now. Everything is based on opportunity costs. Academia has done...
- Stretching For The Right People...
Comment from Charlie Munger about Iscar, via Whitney Tilson’s notes from the 2007 Wesco Annual Meeting:It’s not a Ben Graham stock – in fact, it would be the ultimate non-Ben Graham stock. It’s located a few miles from the Lebanese border in Israel....
- Charlie Munger On The State Of Credit In 2006...
Via Whitney Tilson’s notes from the 2006 Wesco Annual Meeting:Now you have the problems of the macro scene. Let’s take credit expansion. Consumer credit has expanded to levels that nobody’s ever seen before. All of these credit cards and all of...
- Charlie Munger On A Macro Mistake...
Via Whitney Tilson’s notes from the 2005 Wesco Annual Meeting:Cort benefited from the venture-capital-financed, new-company boom. You could argue that we made a macro mistake. These companies went away for a while and Cort was affected. ...
- Charlie Munger On Having The Right Compensation System...
Via Whitney Tilson’s notes from the 2005 Wesco Annual Meeting:It isn’t enough to buy the right business. You’ve also have to have a compensation system that’s satisfactory to the people running them. At Berkshire Hathaway, we have no [single]...
Money and Finance
Charlie Munger on capital and credit in 2005...
Via Whitney Tilson’s notes from the 2005 Wesco Annual Meeting:
It is weird the way that capital occurs. We have monetized houses in this country in a way that’s never occurred before. Ask Joe how he bought a new Cadillac [and he’ll say] from borrowing on his house. We are awash in capital.
[Being] awash is leading to very terrible behavior by credit cards and subprime lenders -- a very dirty business, luring people into a disadvantageous position. It’s a new way of getting serfs, and it’s a dirty business. We have financial institutions, including those with big names, extending high-cost credit to the least able people. I find a lot of it revolting. Just because it’s a free market doesn’t mean it’s honorable.
- Charlie Munger On Opportunity Costs
From the 2005-2013 collection of Munger notes: I just wanted to do the best I could reasonably do with the talent, time and resources I had available. That’s what I was doing then and now. Everything is based on opportunity costs. Academia has done...
- Stretching For The Right People...
Comment from Charlie Munger about Iscar, via Whitney Tilson’s notes from the 2007 Wesco Annual Meeting:It’s not a Ben Graham stock – in fact, it would be the ultimate non-Ben Graham stock. It’s located a few miles from the Lebanese border in Israel....
- Charlie Munger On The State Of Credit In 2006...
Via Whitney Tilson’s notes from the 2006 Wesco Annual Meeting:Now you have the problems of the macro scene. Let’s take credit expansion. Consumer credit has expanded to levels that nobody’s ever seen before. All of these credit cards and all of...
- Charlie Munger On A Macro Mistake...
Via Whitney Tilson’s notes from the 2005 Wesco Annual Meeting:Cort benefited from the venture-capital-financed, new-company boom. You could argue that we made a macro mistake. These companies went away for a while and Cort was affected. ...
- Charlie Munger On Having The Right Compensation System...
Via Whitney Tilson’s notes from the 2005 Wesco Annual Meeting:It isn’t enough to buy the right business. You’ve also have to have a compensation system that’s satisfactory to the people running them. At Berkshire Hathaway, we have no [single]...