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melvin_182

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"- never in my life have I seen more young, rich, smart people holding so much cash - like we do at the Daily Journal. It's wise. Bill Gross's "new normal" is modest lower returns. in a period of modest returns it shouldn't make any difference. Why SHOULD life be easy? People destroy themselves in good times too. "

 

I thought this one was particularly interesting.

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never in my life have I seen more young, rich, smart people holding so much cash - like we do at the Daily Journal. It's wise. Bill Gross's "new normal" is modest lower returns. in a period of modest returns it shouldn't make any difference. Why SHOULD life be easy? People destroy themselves in good times too.

 

I was at the meeting & this is not what Munger said. From my recollection, he said something to the effect of: Never in my life I have seen more people I respect holding so much cas.

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never in my life have I seen more young, rich, smart people holding so much cash - like we do at the Daily Journal. It's wise. Bill Gross's "new normal" is modest lower returns. in a period of modest returns it shouldn't make any difference. Why SHOULD life be easy? People destroy themselves in good times too.

 

I was at the meeting & this is not what Munger said. From my recollection, he said something to the effect of: Never in my life I have seen more people I respect holding so much cas.

 

This makes 10 times more sense and I got you pre correction  :). Its nice to have another guy here who makes spelling errors.

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" - A guy pestered him about his dog-eared page. Munger said that he grew up with the tables and that they haven't changed. The guy persisted - what's the number? 10? 12? Munger shot back that "I want to know the present value of something so I use my table - it's just not complicated. A lot of people DO use complicated stuff - they're the ones who got us into trouble.""

 

FOr those of us who have never had the opportnity to go to a Wesco or DJCO meeting. What is the above referring too?

 

Thanks

 

 

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" - A guy pestered him about his dog-eared page. Munger said that he grew up with the tables and that they haven't changed. The guy persisted - what's the number? 10? 12? Munger shot back that "I want to know the present value of something so I use my table - it's just not complicated. A lot of people DO use complicated stuff - they're the ones who got us into trouble.""

 

FOr those of us who have never had the opportnity to go to a Wesco or DJCO meeting. What is the above referring too?

 

Thanks

 

 

 

The question was referencing Munger's use of printed compound interest tables, as opposed to using a calculator or computer.  The questioner seemed to be asking what discount rate Charlie uses when doing a "present value" calculation.  Charlie did not give a specific figure, but suggested that only simple math is needed for investment valuation. 

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  • 11 months later...

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