Charlie Munger

All intelligent investing is value investing
The big money is not in the buying the selling, but in the waiting
I have seen our holding in Berkshire go down top tick to bottom tick by 50% and I think it’s nature of long term shareholding with the normal vicissitudes
If you stay rational yourself, the stupidity of the world helps you
Sit on your ass investing. You’re paying less to brokers, you’re listening to less nonsense, and if it works, the tax system gives you an extra one, two, or three percentage points per annum
It’s been my experience in life, if you just keep thinking and reading, you don’t have to work
We made our money by being long wonderful businesses, not by using a long-short strategy
Human nature always has incentives to rationalize and misbehave
I don’t think you can become a great investor rapidly, no more than you can become a bone-tumor pathologist quickly
I would argue that passion is more important than brain power
Einstein said his successful theories came from curiosity, concentration, perseverance, and self-criticism
If you keep learning all the time you have a huge advantage
The best thing a human being can do is to help another human being know more
Always take the high road, it’s far less crowded
You need patience, discipline, and an ability to take losses and adversity without going crazy
What good is envy? It’s the one sin you can’t have any fun at
You have to figure out where you’ve got an edge. And you’ve got to play within your own circle of competence
A great business at a fair price is superior to a fair business at a great price
The difference between a good business and a bad business is that good businesses throw up one easy decision after another. The bad businesses throw up painful decisions time after time
Warren Buffett is a learning machine
Civilized people don’t buy gold. They invest in productive businesses
Discipline. Patience. Decisiveness
We have this investment discipline of waiting for a fat pitch
A lot of the businesses we buy [Berkshire Hathaway] are kind of cranky and old-fashioned like us
I don’t have any wonderful insights that other people don’t have. I just avoided idiocy slightly more consistently than others
Most people are too fretful, they worry too much. Success means being very patient, but aggressive when it’s time
A lot of people with high IQs are terrible investors because they’ve got terrible temperaments
You must value the business in order for you to value the stock
If you want to be happy in marriage, try to improve yourself as a spouse, not change your spouse
Never abuse current clients by trying to get new ones. Think how this would work with matrimony – if you ignore your current wife while you pursue another one
Extreme patience combined with extreme decisiveness
I had a considerable passion to get rich, not because I wanted Ferraris – I wanted the independence. I desperately wanted it
I wanted to get rich so I could be independent, like Lord John Maynard Keynes
Benjamin Franklin was able to make the contribution he did because he had [financial] freedom
A director who gets $150,000 per year from a company and needs the money is not independent
If mutual fund directors are independent, then I’m the lead character in the Bolshoi Ballet
What are the secret of success? -one word answer : rational
Understanding both the power of compound interest and the difficulty of getting it is the heart and soul of understanding a lot of things
Repetition is the heart of instruction
There is no way you can live an adequate life without making many mistakes
You don’t have to have perfect wisdom to get very rich – just a bit better than average over a long period of time
Acquire worldly wisdom and adjust your behaviour accordingly
I wanted a lot of children, a house with lots of books, and enough money to have freedom
In my whole life, I have known no wise people who didn’t read all the time
I met the towering intellectuals in books, not in the classroom
I don’t think you can get to be a really good investor over a broad range without doing a massive amount of reading. I don’t think anyone, book will do it for you
I have always imagined that Paradise will be a kind of library
I’ve gotten paid a lot over the years for reading through the newspapers
People calculate too much and think too little
Just out of our respective graduate schools, my friend Warren Buffett and I entered the business world to find huge, predictable patterns of extreme irrationality. These irrationalities were obviously important to what we wanted to do, but our professors never mentioned them. Understanding the problem of irrationalities was not easy. I came to study the psychology of human misjudgement almost against my will. I rejected it until I realized that my attitude was costing me a lot of money and reduced my ability to help everything I loved
Live within your income and save so that you can invest. Learn what you need to learn
The one thing that has surprised me all my life is how many people with high IQs do massively stupid things
Take one simple idea and take it seriously
We don’t have any great record making macroeconomic predictions
Part of the reason we have a decent record is that we pick things that are easy. Other people think they’re so smart, they can take on things that are really difficult, and that proves to be dangerous
You don’t have to be brilliant, only a little bit wiser than the other guys, on average, for a long time
We have a passion for keeping things simple
Quickly identify mistakes and take action
You must force yourself to consider opposing arguments. Especially when they challenge your best loved ideas
Knowing what you don’t know is more useful than being brilliant
We have three baskets for investing: yes, no, and too tough to understand
A majority of life’s errors are caused by forgetting what one is really trying to do

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