Charlie Munger Quotes

I put heavy weight on certainty. It's not risky to buy securities at a fraction of what they're worth.

Investing in a poker game and investing in stocks, at least the way I do it, it's a very similar skillset.

There is very little difference between speculation and investment. The only difference is basically that investments are successful speculations because if you successfully anticipate the future you make a speculative profit.

We define a bargain issue as one which, on the basis of facts established by analysis, appears to be worth considerably more that it is selling for.

The critical investment factor is determining the intrinsic value of a business and paying a fair or bargain price.

If your broker or investment advisor is not familiar with the concept of standard deviation of returns, get a new one.

All sensible investing is value investing

The margin of safety is always dependent on the price paid. It will be large at one price, small at some higher price, nonexistent at some still higher price.

You must never delude yourself into thinking that you're investing when you're speculating.

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

Market timing, by the way, is a tag some buy-and-hold investors use to put down anything that involves using your brain. These are the same people who like to watch the locomotive coming and get run down in the name of discipline.

You don't get rewarded for taking risk; you get rewarded for buying cheap assets. And if the assets you bought got pushed up in price simply because they were risky, then you are not going to be rewarded for taking a risk; you are going to be punished for it.

Your initial instincts about investments and people are usually correct. We do a lot of due diligence in this business and most of the time it comes out where we started.

Great investments may look crazy but really may not be.

If there's a recession, I'd buy stocks. That's when you make money: when markets are spooked.

Start small; get to know the landscape. We take risks but not major risks. We always started with small capital - €4m in Holland, $10m in Russia - and as we get to know the landscape of a country, we think about other businesses.

I've always loved to play games, and face it: investing is one big game. You need to be decisive, open-minded, flexible and competitive.

I consider each business investment based on concept and revenue.

The stock market to me was like a video game. When it went off, it was like turning the game off. It wasn't something I'd think about until I'd turn the machine on again.

The way to make money is to buy when blood is running in the streets.

When buying shares, ask yourself, would you buy the whole company?

We take the traditional value investor's process and just flip it around a little bit. The traditional value investor asks 'Is this cheap?' and then 'Why is it cheap?' We start by identifying a reason something might be mispriced, and then if we find a reason why something is likely mispriced, then we make a determination whether it's cheap.

Market timing doesn't work. If all the bubbles and all this mispricing really exist, how come so few people see it before it turns out that way?

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