Opportunity Cost – Munger noted that for any corporate stock, a bond is an alternative. You must choose the best opportunity you can understand. He summed up, “Life is a whole series of opportunity costs.” Quality People - Buffett said he looks for a manager who bats .400 and loves it. Munger noted there are many wonderful people and many awful people. Avoid the awful. Stick to those who take their promises seriously. Good Businesses – Go with those that are understandable with a sustainable edge. The pond you choose is far more important than how well you swim.
