Stock-picking is like gambling: those who win well, seldom bet, but when they do, they bet heavily.
CHARLIE MUNGERBull markets go to people’s heads. If you’re a duck on a pond, and it’s rising due to a downpour, you start going up in the world. But you think it’s you, not the pond.
More Charlie Munger Quotes
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It’s waiting that helps you as an investor, and a lot of people just can’t stand to wait. If you didn’t get the deferred-gratification gene, you’ve got to work very hard to overcome that.
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If you get into the mental habit of relating what you’re reading to the basic structure of the underlying ideas being demonstrated, you gradually accumulate some wisdom.
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Move only when you have an advantage. It’s very basic. You have to understand the odds and have the discipline to bet only when the odds are in your favor.
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Spend less than you make; always be saving something. Put it into a tax-deferred account. Over time, it will begin to amount to something. This is such a no-brainer.
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It’s stupid the way people extrapolate the past — and not slightly stupid, but massively stupid.
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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.
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Someone will always be getting richer faster than you. This is not a tragedy.
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To me, it’s obvious that the winner has to bet very selectively. It’s been obvious to me since very early in life. I don’t know why it’s not obvious to very many other people.
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I did not succeed in life by intelligence. I succeeded because I have a long attention span.
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It’s not greed that drives the world, but envy.
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We don’t like trading agony for money
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It never ceases to amaze me to see how much territory can be grasped if one merely masters and consistently uses all the obvious and easily learned principles.
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Show me the incentive and I will show you the outcome.
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The average result has to be the average result. By definition, everybody can’t beat the market. As I always say, the iron rule of life is that only 20% of the people can be in the top fifth. That’s just the way it is.
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Opportunity comes to the prepared mind.
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Great investing requires a lot of delayed gratification.
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I think that, every time you saw the word EBITDA, you should substitute the word “bullshit” earnings.
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A great business at a fair price is superior to a fair business at a great price.
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Hard work, honesty, if you keep at it, will get you almost anything.
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How do you compete against a true fanatic? You can only try to build the best possible moat and continuously attempt to widen it.
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The iron rule of nature is: you get what you reward for. If you want ants to come, you put sugar on the floor.
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Your life must focus on the maximization of objectivity.
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Why should it be easy to do something that, if done well, two or three times, will make your family rich for life?
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Intelligent people make decisions based on opportunity costs.
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There’s no way that you can live an adequate life without many mistakes. In fact, one trick in life is to get so you can handle mistakes. Failure to handle psychological denial is a common way for people to go broke.
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Acknowledging what you don’t know is the dawning of wisdom.
CHARLIE MUNGER