Tao of Charlie Munger Quotes

“People are trying to be smart—all I am trying to do is not to be idiotic, but it’s harder than most people think.”
― David Clark, Tao of Charlie Munger: A Compilation of Quotes from Berkshire Hathaway's Vice Chairman on Life, Business, and the Pursuit of Wealth With Commentary by David Clark

“Spend each day trying to be a little wiser than you were when you woke up. Discharge your duties faithfully and well. Slug it out one inch at a time, day by day. At the end of the day—if you live long enough—most people get what they deserve.”
― David Clark, Tao of Charlie Munger: A Compilation of Quotes from Berkshire Hathaway's Vice Chairman on Life, Business, and the Pursuit of Wealth With Commentary by David Clark

“I think that one should recognize reality even when one doesn’t like it; indeed, especially when one doesn’t like it.”
― David Clark, Tao of Charlie Munger: A Compilation of Quotes from Berkshire Hathaway's Vice Chairman on Life, Business, and the Pursuit of Wealth With Commentary by David Clark

“Demokrasilerin enflasyona eğilimli olduğunu düşünüyorum çünkü politikacılar doğal olarak harcama yapacaklar; para basma gücüne sahipler ve parayı oy almak için kullanacaklar.”
― David Clark, Tao of Charlie Munger: A Compilation of Quotes from Berkshire Hathaway's Vice Chairman on Life, Business, and the Pursuit of Wealth With Commentary by David Clark

“It’s the strong swimmers who drown.’ ”
― David Clark, Tao of Charlie Munger: A Compilation of Quotes from Berkshire Hathaway's Vice Chairman on Life, Business, and the Pursuit of Wealth With Commentary by David Clark

“INCENTIVES – “From all business, my favorite case on incentives is Federal Express. The heart and soul of their system—which creates the integrity of the product—is having all their airplanes come to one place in the middle of the night and shift all the packages from plane to plane. If there are delays, the whole operation can’t deliver a product full of integrity to Federal Express customers. And it was always screwed up. They could never get it done on time. They tried everything—moral suasion, threats, you name it. And nothing worked. Finally, somebody got the idea to pay all these people not so much an hour, but so much a shift—and when it’s all done, they can go home. Well, their problems cleared up overnight.” – Here Charlie is talking about incentives. All of us who have held hourly jobs know that if workers are paid by the hour they will work more slowly than if they are paid them by the job. Why? Because if they are paid by the hour, they have an incentive to work more slowly in order to put more hours on the clock and make more money. But if they are paid by the job, there is an incentive to work quickly so they can get onto the next job and make more money. Federal Express aligned management’s goals with employee incentives. With hourly pay their employees were never in a hurry, but when pay was given for a specific task—getting a plane loaded—suddenly they were in a rush to get the job done. The key wasn’t paying workers by the task or shift; the key was letting them go home if they finished early, which was a kind of financial reward in that they were getting paid for the full shift even if they left early.”
― David Clark, Tao of Charlie Munger: A Compilation of Quotes from Berkshire Hathaway's Vice Chairman on Life, Business, and the Pursuit of Wealth With Commentary by David Clark

“Diversification is a way to protect financial consultants and stock brokers from ever looking really bad, but it also stops them from looking really good as well. What happens with broad diversification—holding a portfolio of, say, fifty or more different stocks—is that the winners will be canceled out by the losers, just as the losers will be canceled out by the winners. Diversification creates a situation that basically mimics the market or an index fund. An adviser who counsels diversification never looks very good or very bad, just average.”
― David Clark, Tao of Charlie Munger: A Compilation of Quotes from Berkshire Hathaway's Vice Chairman on Life, Business, and the Pursuit of Wealth With Commentary by David Clark