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It's human nature to extrapolate the recent past into the future, but it's terrible that managements go along with this.

Charlie Munger

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Charlie Munger
Age: 100
Born: 1924
Born: January 1
Business Person
Financier
Investor
Lawyer
Omaha
Nebraska
Charlie Thomas Munger
Charles T. Munger
Charles Thomas Munger
Terrible
Future
Nature
Past
Managements
Human
Extrapolate
Humans
Recent
Management
Along

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I have a black belt in chutzpah. I was born with it. Some people, like some of the women I know, have a black belt in spending. They were born with that. But what they gave me was a black belt in chutzpah.
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We have a history when things are really horrible of wading in when no one else will.
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There is the sheer amount of Franklin's wisdom. And the talent. Franklin played four instruments. He was the nation's leading scientist and inventor, plus a leading author, statesman, and philanthropist. There has never been anyone like him.
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We don't have an isolated group [of senior managers] surrounded by servants. Berkshire's headquarters is a tiny little suite. We just came back from Berkshire's board meeting it had moved up to the board room of the Kiewit company and [it was so large and luxurious that] I felt uncomfortable.
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We don't have any miraculous way of avoiding taxes at Wesco and Berkshire.
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People always underestimate the ability of earth to increase its carrying capacity.
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Clever derivatives broke dozens of companies. It killed them. Bankrupt. We don't need these kinds of innovation in finance. It's OK to be boring in finance. What we want is innovation in widgets.
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You've got to have models in your head and you've got to array you experience - both vicarious and direct - onto this latticework of mental models.
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Capitalism is a pretty brutal place.
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A few public hangings will really change behavior. One of our Presidents said if he could execute three people each year for no cause, it would make it a lot easier to govern. When someone said that's not enough, he said, Oh yes it is, because I'd publish the list of people under consideration.
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A banker who is allowed to borrow money at X and loan it out at X plus Y will just go crazy and do too much of it if the civilization doesn't have rules that prevent it.
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Tthe first rule is that you can't really know anything if you just remember isolated facts and try and bang 'em back. If the facts don't hang together on a latticework of theory, you don't have them in a usable form.... You may have noticed students who just try to remember and pound back what is remembered. Well, they fail in school and in life.
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Trying to prioritize among things we're unlikely to do is pretty fruitless.
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You have to have a temperament to grab ideas and do sensible things. Most people don’t grab the right ideas or don’t know what to do with them.
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Being rational is a moral Imperative. You should never be stupider than you need to be.
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Like the stocks of both Berkshire and Wesco to trade within hailing distance of what we think of as intrinsic value. When it runs up, we try to talk it down. That's not at all common in Corporate America, but that's the way we act.
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We try more to profit from always remembering the obvious than from grasping the esoteric.
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Never, ever, think about something else when you should be thinking about the power of incentives.
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Expect hogs to eat a lot more in the presence of a lot of hog wash.
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How could economics not be behavioral? If it isn't behavioral, what the hell is it?
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