Show me the incentive and I will show you the outcome.
CHARLIE MUNGERShow me the incentive and I will show you the outcome.
CHARLIE MUNGERInvesting is where you find a few great companies and then sit on your ass.
CHARLIE MUNGERI believe in the discipline of mastering the best that other people have ever figured out. I don’t believe in just sitting down and trying to dream it all up yourself. Nobody’s that smart.
CHARLIE MUNGERIt’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.
CHARLIE MUNGERIf you don’t allow for self-serving bias in the conduct of others, you are, again, a fool.
CHARLIE MUNGERWhy should it be easy to do something that, if done well, two or three times, will make your family rich for life?
CHARLIE MUNGERYour life must focus on the maximization of objectivity.
CHARLIE MUNGERCommon stock investors can make money by predicting the outcomes of practice evolution. You can’t derive this by fundamental analysis – you must think biologically.
CHARLIE MUNGERYou’re looking for a mispriced gamble. That’s what investing is. And you have to know enough to know whether the gamble is mispriced. That’s value investing.
CHARLIE MUNGERThe investment game always involves considering both quality and price, and the trick is to get more quality than you pay for in price. It’s just that simple.
CHARLIE MUNGERThe safest way to get what you want is to deserve what you want.
CHARLIE MUNGERIf you want to understand science, you have to understand math. In business, if you’re enumerate, you’re going to be a klutz. The good thing about business is that you don’t have to know any higher math.
CHARLIE MUNGERHow do you compete against a true fanatic? You can only try to build the best possible moat and continuously attempt to widen it.
CHARLIE MUNGERThe more hard lessons you can learn vicariously rather than through your own hard experience, the better.
CHARLIE MUNGERI don’t spend much time regretting the past, once I’ve taken my lesson from it. I don’t dwell on it.
CHARLIE MUNGERYou must force yourself to consider opposing arguments. Especially when they challenge your best loved ideas.
CHARLIE MUNGER