Charlie Munger Quotes

Using volatility as a measure of risk is nuts. Risk to us is 1) the risk of permanent loss of capital, or 2) the risk of inadequate return.

Investors need to get rewarded for their investment, especially in unstable countries.

Different industries have different risks and growth rates and volatility.

Producers are not gamblers. They want a good return on their investment.

If your business had no risk, you could go get a bank loan and call it a day. VCs like risks - without them, venture capital wouldn't exist. But they need to be risks that VCs are good at assessing and managing.

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

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 put £150,000 into the stage production of Grease and have got back £1.5 million so far. It has been a fantastic success.

Uncertainty about sales impedes business planning and could harm capital formation just as much as uncertainty about inflation can create uncertainty about relative prices and harm business planning.

Venture capitalists are professional money managers. We are provided capital to invest as long as we can return it to our investors with a strong return in a reasonable amount of time. A strong return is three times cash on cash. A reasonable amount of time is ten years max.

The government can’t guarantee that you should earn profit from your investments.

There’s nothing like doing things with OPM—Other People’s Money. It takes the risk out of it.

Look, I think if you've got a niche portfolio or just operating in one country, like the United States, your ability to absorb the volatility is much less.

I've learned that all investments have risk.

I don't think there is anything unusual about a business losing money in certain years.

There may be less of a chance of losing all the money you put into a mutual fund than there is of losing all the money you put into lottery tickets, but you're never going to win big in a mutual fund.

Financial risk is always associated with drug discovery. But the benefit that a blockbuster drug can bring to the business can be phenomenal if you can take that risk.

We all get into business, and we take a risk in terms of putting capital.

In some industries, we refer to risk taking as 'research and development.' At financial institutions, we often take risk by investing in securities.

I myself saw Yahoo become a $100 billion company and then become a $10 billion company, so you always have to look at valuations with a grain of salt and understand it is a point-in-time measure.

Well, there's always risk in long-term investment.

The actions of hedge fund managers in exercising their fiduciary responsibilities to their investors is not the reason why Chrysler is in jeopardy.

When you take smaller gambles, no one particular deal can be big enough to have a material adverse effect on the company.

Trust me: I know a good investment when I see one.

Just because a company's future is highly uncertain doesn't mean an investment in it is risky. In fact, some of the best potential investments are highly uncertain but have little risk of permanent capital loss.