Money and Finance
From his speech “Academic Economics: Strengths and Faults After Considering Interdisciplinary Needs” (available HERE, HERE, or in Poor Charlie's Almanack):
- Quotes On Doing What Matters...
"There is nothing quite so useless, as doing with great efficiency, something that should not be done at all." -Peter F. Drucker "We've got great flexibility and a certain discipline in terms of not doing some foolish thing just to be active -- discipline...
- Charlie Munger Speech At Usc - May 2007
Just in case any readers haven’t watched or read this speech in a while. This speech is also in the third edition of Poor Charlie’s Almanack, and I took some notes on it when I first watched it HERE. Links to videos: Charlie Munger Speech at USC -...
- Beware Of Economists Peddling Elegant Models - By Mark Buchanan
Found via Pragmatic Capitalism. Mathematics can be beguilingly elegant. It can also be dangerous when people mistake its elegance for truth. Albert Einstein’s theory of general relativity might be the best example of elegant math, capturing a wide range...
- The Psychology Of Human Misjudgement - Charlie Munger Full Speech (audio)
Found via ValueWalk. This is the audio of Munger's speech from 1995. The transcript of the speech is available HERE. Mr. Munger also made revisions to the speech for Poor Charlie's Almanack, which is the best source to gain from Charlie's...
- Charlie Munger Quote (projections)
“Mark Twain used to say “A mine is a hole in the ground with a liar on the top.” And a projection prepared by anybody who stands to earn a commission or an executive trying to justify a particular course of action will frequently be a lie...
Money and Finance
Charlie Munger on projections
From his speech “Academic Economics: Strengths and Faults After Considering Interdisciplinary Needs” (available HERE, HERE, or in Poor Charlie's Almanack):
Usually, I don’t use formal projections. I don’t let people do them for me because I don’t like throwing up on the desk (laughter), but I see them made in a very foolish way all the time, and many people believe in them, no matter how foolish they are. It’s an effective sales technique in America to put a foolish projection on a desk.
And if you’re an investment banker, it’s an art form. I don’t read their projections either. Once Warren and I bought a company and the seller had a big study done by an investment banker, it was about this thick. We just turned it over as if it were a diseased carcass. He said, “We paid $2 million for that.” I said, “We don’t use them. Never look at them.”
- Quotes On Doing What Matters...
"There is nothing quite so useless, as doing with great efficiency, something that should not be done at all." -Peter F. Drucker "We've got great flexibility and a certain discipline in terms of not doing some foolish thing just to be active -- discipline...
- Charlie Munger Speech At Usc - May 2007
Just in case any readers haven’t watched or read this speech in a while. This speech is also in the third edition of Poor Charlie’s Almanack, and I took some notes on it when I first watched it HERE. Links to videos: Charlie Munger Speech at USC -...
- Beware Of Economists Peddling Elegant Models - By Mark Buchanan
Found via Pragmatic Capitalism. Mathematics can be beguilingly elegant. It can also be dangerous when people mistake its elegance for truth. Albert Einstein’s theory of general relativity might be the best example of elegant math, capturing a wide range...
- The Psychology Of Human Misjudgement - Charlie Munger Full Speech (audio)
Found via ValueWalk. This is the audio of Munger's speech from 1995. The transcript of the speech is available HERE. Mr. Munger also made revisions to the speech for Poor Charlie's Almanack, which is the best source to gain from Charlie's...
- Charlie Munger Quote (projections)
“Mark Twain used to say “A mine is a hole in the ground with a liar on the top.” And a projection prepared by anybody who stands to earn a commission or an executive trying to justify a particular course of action will frequently be a lie...