Tag Archives: Charlie Munger
Investing Errors Come From Psychology, Not Information — Charlie Munger (2 of 2)
“A latticework of mental models” describes ways that Charlie Munger sees intelligence and wisdom. Mental models describe more than simple IQ, or Intelligence Quotient. Munger Avoids Investing Errors by Many Mental Models Munger believes a wise person is best served by 80 to 90 mental… Continue reading
Dodging Bullets Keys Investment Success
Great investors have skills to seize opportunities and get into good situations. Equally as important can be the skill at “scrambling out of bad situations,” as Charlie Munger would say, or “dodging bullets” as it sometimes feels when helping companies solve challenges. At the Berkshire meeting… Continue reading
Portfolio Churn — Enemy of Investment Returns
Churn destroys investment return. Strangely, traditional private equity builds itself to churn. Churn reduces investment returns for several reasons such as transaction costs, business disruption, and the difference in tax rates between ordinary income and capital gains. This last difference is the easiest to quantify as… Continue reading
2014 Berkshire Hathaway Annual Letter – Buffett and Munger Observations From 50 Years
Saturday, Feb. 28, 2015, Berkshire Hathaway posted their 2014 Berkshire Hathaway annual letter. As this is the 50th anniversary of Warren Buffett taking control of Berkshire, this letter included two extra sections. Both Buffett and Vice Chairman Charlie Munger wrote about their observations about the first fifty… Continue reading
Berkshire Hathaway Annual Meeting Notes for 2014
For those you have not attended a Berkshire Hathaway annual meeting, picture this scene at the 2014 meeting. A stadium is filled to its capacity of 30,000 people with another 8,000 in overflow rooms at the adjacent conference center and hotel. For nearly six hours,… Continue reading
Berkshire Hathaway: If You Love the Management, Set Them Free
Private equity investors often take the “father knows best” approach to working with their management teams. To me, this is crazy — particularly when the management team has years of experience with the business, the investors are new to the business, and the track record… Continue reading
Joys of Ice Cream, Apple Pie, and Recurring Revenue
Charlie Munger, Vice Chairman of Berkshire Hathaway, once told a friend of mine that if Charlie were a young man, he would be “trying to find online recurring revenue businesses” — like many that are being built and growing today. The combination of recurring revenue… Continue reading
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