Charlie Munger Quotes

Obviously, consideration of costs is key, including opportunity costs. Of course capital isn't free. It's easy to figure out your cost of borrowing, but theorists went bonkers on the cost of equity capital. They say that if you're generating a 100% return on capital, then you shouldn't invest in something that generates an 80% return on capital. It's crazy.

Capital is that part of wealth which is devoted to obtaining further wealth.

We test everything on a one- and a three-year cycle. And you want to stress-test a model, and the three-year test usually does that because you have a growth and value bias. You have different interest rate environments.

If you invest in something a little more expensive with longevity, you'll use it more.

Empowering innovations require long-term investments, which tie up capital for years and years. So companies are using capital to create more capital, and consequently, the world is awash in capital, but the innovations we need to advance aren't there.

I'd stay away from investments in a variety of sectors that are capital intensive. Anyone who says we need $100 million before we know if what we're doing makes sense and the customers want it - that's not going to work.

I'm always investing. I'm constantly in talks with someone about some opportunity.

With the world changing fast, we needed capital for investments. There's only so much bandwidth in your own balance sheet.

Savings is the fundamental input for capital investment, and capital investment is the primary ingredient in productivity.

Once we started making investments, we realized the same service we provided to artists was applicable to entrepreneurs as well.

I won't say that 'shotgun' is the word I'd prefer to use, but we certainly do a lot of investments.

In my worldview, time is energy that you can invest in things, and money is energy that you can invest. Time has significantly more leverage than money in terms of how much energy you get out of time.

Why take the pay-per-view gamble? I don't need to do that.

United spent $1.2 billion repurchasing shares in 2015 and plans to spend $1.5 billion on share repurchases in the first quarter of 2016. We have a lot of positive momentum, but this is just the beginning.

Price is what you pay, but value, as Warren Buffett has observed, is what you get.

In every investment, before I get involved or invest, I always see what the mindset of the founder, the CEO, is.

We take dispassionate view of our investments. Does it mean that we are looking out to monetise the investment? That is not correct. But if we get an offer that we cannot refuse, as I say, then it is not that we are not, that we will still hold on to the investment.

When I look at offers, I think about the entire package and how it is going to work in my favour or how it's going to project me.

If I were to spend investor money on nice furnishings and so forth, particularly early on, I might not have it for opportunities that can really grow our business.

Good investors have to choose how to allocate their mind share with the precious capital they have.

Stock price multiples are negatively correlated with real interest rates. As interest rates rise, the market multiple will fall.

When times are bad is when you want to build! Why wait for things to pick up so everything will cost more?

A real capitalist knows that $10 given today does a lot more good than $100 given 10 years from now.

Finding a single investment that will return 20% per year for 40 years tends to happen only in dreamland. In the real world, you uncover an opportunity, and then you compare other opportunities with that. And you only invest in the most attractive opportunities. That's your opportunity cost. That's what you learn in freshman economics. The game hasn't changed at all. That's why Modern Portfolio Theory is so asinine.

An investor should act as though he had a lifetime decision card with just twenty punches on it.