Money and Finance
- Charlie Munger On What Makes Investment Hard
From Poor Charlie's Almanack:What makes investment hard...is that it's easy to see that some companies have better businesses than others. But the price of the stock goes up so high that, all of a sudden, the question of which stock is the...
- Charlie Munger Quote
Found via Seeking Wisdom: "If you've got two suitors who are really eager to have you and one is way the hell better than the other, you do not have to spend much time with the other. And that's the way we filter out buying opportunities." -Charles...
- Charlie Munger On Opportunity Cost…
Via Whitney Tilson’s notes from the 2006 Wesco Annual Meeting:It doesn’t matter to Warren where the opportunity is. He has no preconceived ideas about whether Berkshire’s money ought to be in this or that. He’s scanning the world trying to get...
- Charlie Munger On Future Inflation
I re-watched the talk with Charlie Munger at Harvard-Westlake (from January 2010) last night on DVD and thought Munger's inflation comment was worth mentioning. After talking about how he knew the derivative and mortgage mess was going to very badly,...
- Averaging Down In A Position
When given the opportunity to average down in a position that I own and want more of I'll normally take the chance when it's the best opportunity available. Averaging down gives you a chance to lower your cost basis in a company that you have...
Money and Finance
Charlie Munger on opportunity cost
Via the Santangel’s Review transcript of Charlie Munger at Harvard-Westlake (January 2010):
Berkshire Hathaway is constantly kicking off ideas in about two seconds flat. We know we’ve got opportunity X, which is better than the new opportunity. Why do we want to waste two seconds thinking about the new opportunity? Many of you come from places that don’t do that. You’ve got to have one horse, one rabbit, one something or rather, and that rabbit is going to be thinking about something which would be ruled out immediately by an opportunity cost available generally to the place – but, it’s a different department. You have to be diversified and so on and so on. It’s easy to drift into this idea that opportunities don’t matter, you’ve got so many different ways of doing things that are better. It isn’t better.
The right way to make decisions in practical life is based on your opportunity cost. When you get married, you have to choose the best [spouse] you can find that will have you. The rest of life is the same damn way.
- Charlie Munger On What Makes Investment Hard
From Poor Charlie's Almanack:What makes investment hard...is that it's easy to see that some companies have better businesses than others. But the price of the stock goes up so high that, all of a sudden, the question of which stock is the...
- Charlie Munger Quote
Found via Seeking Wisdom: "If you've got two suitors who are really eager to have you and one is way the hell better than the other, you do not have to spend much time with the other. And that's the way we filter out buying opportunities." -Charles...
- Charlie Munger On Opportunity Cost…
Via Whitney Tilson’s notes from the 2006 Wesco Annual Meeting:It doesn’t matter to Warren where the opportunity is. He has no preconceived ideas about whether Berkshire’s money ought to be in this or that. He’s scanning the world trying to get...
- Charlie Munger On Future Inflation
I re-watched the talk with Charlie Munger at Harvard-Westlake (from January 2010) last night on DVD and thought Munger's inflation comment was worth mentioning. After talking about how he knew the derivative and mortgage mess was going to very badly,...
- Averaging Down In A Position
When given the opportunity to average down in a position that I own and want more of I'll normally take the chance when it's the best opportunity available. Averaging down gives you a chance to lower your cost basis in a company that you have...