Charlie Munger Quotes

I have a million dollars in the stock market, because if I lose a million dollars, I don't personally care.

I have no complaints about losing money I put in high-risk investments. I did some of that when I had real money; my informed choice, my measured gamble.

I'm not someone who puts their money in a fund that earns 2 to 5 percent a year. I'm a man who tries to change things, move something with my money, to create jobs and, of course, at the same time earn more money with it.

What I invest in, while not risky for me, may be too risky for most people.

Because in the New Normal you are more worried about the return of your capital, not return on your capital.

You shouldn't own common stocks if a 50 per cent decrease in their value in a short period of time would cause you acute distress.

Thousands of people have tried, and the evidence is clear: The more you trade, the less you keep.

It's quite clear that stocks are cheaper than bonds. I can't imagine anybody having bonds in their portfolio when they can own equities, a diversified group of equities. But people do because they, the lack of confidence. But that's what makes for the attractive prices. If they had their confidence back, they wouldn't be selling at these prices. And believe me, it will come back over time.

Long-term investing has gotten so popular, it's easier to admit you're a crack addict than to admit you're a short-term investor.

Even with a margin of safety in the investor's favor, an individual security may work out badly. For the margin guarantees only that he has a better chance for profit than for loss - not that loss is impossible. But as the number of such commitments is increased the more certain does it become that the aggregate of the profits will exceed the aggregate of the losses.

We're getting hurt, but I'm a long-term investor.

Always keep your portfolio and your risk at your own individual comfortable sleeping point.

Too many people say to their brokers, I can't deal with this. Take my money. Do what you want. That's the worst attitude you can have.

If your investing approach requires that you become Nostradamus to succeed, then you are destined to fail.

There's a tendency to look at investments in isolation. Investors focus on the risk of individual securities.

I'm not a money manager, but I can tell you what the conventional wisdom is. The younger you are, the more risk you can take on.

Investors have to ask themselves two questions. How much can we grow our investments? And, can we afford our mistakes?

My investments have been hurt.

But in practice, if often comes down to not suffering a loss as big as the huge gain you made a while ago.

Investing is about making probabilistic decisions with limited information about an unknowable future. The variables are well known, as are the possible outcomes.

The last thing you want to do, unless it's a very unusual situation, is to invest money.

The beauty of diversification is it's about as close as you can get to a free lunch in investing.

Investing is a business where you can look very silly for a long period of time before you are proven right.

Investors don't like uncertainty.

What's so seductive about the efficient markets hypothesis is that it applies nine years out of ten. A lot of the time it works. But when it stops working, you blow up.