I do not think you can trust bankers to control themselves. They are like heroin addicts. Charlie Munger More Quotes by Charlie Munger More Quotes From Charlie Munger And, partly, I had found that theory-structure was a superpower in helping one get what one wanted. As I had early discovered in school wherein I had excelled without labor, guided by theory, while many others, without mastery of theory failed despite monstrous effort. Better theory I thought had always worked for me and, if now available could make me acquire capital and independence faster and better assist everything I loved. Charlie Munger independenceeffortschool The ethos of not fooling yourself is one of the best you could possibly have. It's powerful because it's so rare. Charlie Munger fooling-yourselfethospowerful Rationality is not just something you do so that you can make more money, it is a binding principle. Rationality is a really good idea. You must avoid the nonsense that is conventional in one's own time. It requires developing systems of thought that improve your batting average over time. Charlie Munger principlesaverageideas The hedge fund known as "Long Term Capital Management" collapsed last fall through overconfidence in its highly leveraged methods, despite I.Q.'s of its principals that must have averaged 160. Smart people aren't exempt from professional disasters from overconfidence. Often, they just run aground in the more difficult voyages they choose, relying on their self-appraisals that they have superior talents and methods. Charlie Munger smartrunningfall We have to have a special insight, or we'll put it in the 'too tough' basket. All of you have to look for a special area of competency and focus on that. Charlie Munger investingfocusspecial Don't do cocaine. Don't race trains. And avoid AIDS situations. Charlie Munger cocaineaidsrace There are worse situations than drowning in cash and sitting, sitting, sitting. I remember when I wasn’t awash in cash — and I don’t want to go back. Charlie Munger investingcashsitting To the man with only a hammer, every problem looks like a nail. Charlie Munger hammersnailsmen Even bright people are going to have limited, really valuable insights in a very competitive world when they're fighting against other very bright, hardworking people. And it makes sense to load up on the very few good insights you have instead of pretending to know everything about everything at all times. Charlie Munger fightingpeopleworld I mean people are really crazy about minor decrements down. And then, if you act on them, then you get into reciprocation tendency, because you don't just reciprocate affection, you reciprocate animosity, and the whole thing can escalate. And so huge insanities can come from just subconsciously over-weighing the importance of what you're losing or almost getting and not getting. Charlie Munger crazymeanpeople Understanding both the power of compound interest and the difficulty of getting it is the heart and soul of understanding a lot of things. Charlie Munger understandingsoulheart In fact I've probably never seen such a wide moat. Charlie Munger moatswidefacts Great investing requires a lot of delayed gratification. Charlie Munger delayed-gratificationgratificationinvesting Almost all good businesses engage in 'pain today, gain tomorrow' activities. Charlie Munger gainspaintoday For years I have read the morning paper and harrumphed. There's a lot to harrumph about now. Charlie Munger papermorningyears Assume life will be really tough, and then ask if you can handle it. If the answer is yes, you've won. Charlie Munger toughassuminganswers If only I had the influence with my wife and children that I have in some other quarters! Charlie Munger influencewifechildren It's a finite and very competitive world. All large aggregations of capital eventually find it hell on earth to grow and thus find a lower rate of return. Charlie Munger returnearthworld Capitalism is a pretty brutal place. Charlie Munger brutalcapitalism Spend each day trying to be a little wiser than you were when you woke up. Day by day, and at the end of the day-if you live long enough-like most people, you will get out of life what you deserve. Charlie Munger the-end-of-the-daylongpeople
