Not many are familiar with Warren Buffett's right-hand man - Charlie Munger - who is known to have played an equally significant role in the making of Berkshire Hathaway. Here are his five interesting quotes.
Rarely anyone among investors, all across the world, can claim to not have heard about Warren Buffett, Chairman and CEO of Berkshire Hathaway. The ‘Oracle of Omaha’ as he is widely called is known to make smart and profitable investments for decades. His words of wisdom are closely followed by the best of the investors the world over. However, not many are familiar with his right-hand man – Charlie Munger – who is known to have played an equally significant role in the making of Berkshire Hathaway. The man, who mostly prefers to speak little, is no less than Buffett when it comes at picking high potential stocks and making handful of profit out of them.
Here we would discuss five of Charlie Munger’s best quotes that could help any investor a great deal:
“A great business at a fair price is superior to a fair business at a great price.”
“Invest in a business any fool can run, because someday a fool will. If it won’t stand a little mismanagement, it’s not much of a business. We’re not looking for mismanagement, even if we can withstand it.”
“The big money is not in the buying or the selling, but in the waiting.”
“Our experience tends to confirm a long-held notion that being prepared, on a few occasions in a lifetime, to act promptly in scale, in doing some simple and logical thing, will often dramatically improve the financial results of that lifetime.A few major opportunities, clearly recognized as such, will usually come to one who continuously searches and waits, with a curious mind that loves diagnosis involving multiple variables. And then all that is required is a willingness to bet heavily when the odds are extremely favorable, using resources available as a result of prudence and patience in the past.”
“What is elementary, worldly wisdom? Well, the 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’ve got to have models in your head. And you’ve got to array your experience – both vicarious and direct – on this latticework of models. You may have noticed students who just try to remember and pound back what is remembered. Well, they fail in school and fail in life. You’ve got to hang experience on a latticework of models in your head.”