The Unadulterated Wit & Wisdom of Charlie Munger

[Parsad]

Forbes article on Munger.  Cheers!

 

http://www.forbes.com/2010/05/12/charlie-munger-warren-buffett-markets-streettalk-berkshire-hathaway.html?partner=yahootix

[Myth465]

The man certainly speaks tough to power. I agree 100%

[Guest ValueCarl]

That's a great shot of the two wise men with WEB looking onto his older peer as if to say, "Did you really say that, you old hoot owl!"

 

The part where he talks about making "transaction costs" more prohibitive is interesting. On the other hand, I've come to find it's just another brokerage firm ruse-$7.00 trades or whatever-to hook the fish since that, it seems as though with the exclusion of some "inflexion point" for a meaningful price direction "change," between their bid/ask spreads, and computer models which are tied to their inventories at making markets in a given name, these firms maintain significantly "higher built in margins" for letting one in or out of a given, dare I say, "asset." 

 

For example, whenever I've called in to do a block trade in the past, I see how they "set me up" for a gaffing. The stock price becomes frozen and all eyes move towards that trade. To think they don't know price direction or their necessary "margins" for staying in business tied to "inventory management," is silliness on the part of players. Stated differently, there is no free lunch for the retail investor.         

 

What appears cheap on the surface, is quite costly when one delves deeper into these SHARKS' waters.

 

Charlie says he "sold" cheap stock to his kids at $140M. His children must be damn wealthy unless he meant "GIFTED?

 

In the mean time, he's still attempting to offer hope to the little guy, while he elevates himself compared to the competition although not in the big picture of life. I guess we could say that we're all a bit stupid with all there is to know beyond this business of "SPECULATION!" 

 

<On Himself

"I went where there was dumb competition (investment management). We do so well in spite of being so stupid. That's why there's hope for you!">