During the Daily Journal annual meeting, Charlie mentioned that Warren (and he) were puzzling over BRK's success AND that Warren will be devoting a lot of his discussion in the 2014 Annual Report (published in 2015) to the issue. Charlie also said, "BRK's results were prodigious, but they were not produced by prodigies..."
Well, in this case, Charlie is dead wrong. Both he and Warren are prodigies... They just happen not to be child prodigies that's all. Furthermore, they employed and invested in prodigies.
He went on a bit about how probably only BRK and Thomas Reuters managed to survive technological obsolescence in their main line of work, yet went on to greatness. (I would argue that IBM managed that feat as well.)
On other matters, Charlie is not one to pull punches. He would consign the former executives at Countrywide and their ilk to the "lowest reaches of hell"; he likened their behavior to running a child prostitution ring in Indonesia, just "because someone else is making [lots of] money doing it, doesn't mean you have to."
Jason Zweig had an article in yesterday's WSJ (9/11, I hate even typing that date out) and tomorrow's (Saturday) paper, plus a blog post here:
http://blogs.wsj.com/moneybeat/2014/09/12/a-fireside-chat-with-charlie-munger/
Friday, September 12, 2014
Thursday, September 11, 2014
Charlie Munger and the liberal arts.
Although Charlie Munger is probably one of the greatest stoic philosophers of our time, he still disparages liberal arts majors. Yesterday, at this year's Daily Journal meeting, he said he was glad not to have a liberal arts graduate friend of his grandchild at the dinner table, lest orgies ensue, as if the rigors of differential calculus taught morality.
Properly taught, Engineering 101 does teach a certain sound way of thinking, but morality no. Previously, Charlie has argued that sound thinking is a moral imperative. I would argue that in general Charlie's way of thinking is exactly what liberal arts should be, an array of mental models from different disciplines, including the sciences. To be educated in today's world you have to know some science and math.
Properly taught, Engineering 101 does teach a certain sound way of thinking, but morality no. Previously, Charlie has argued that sound thinking is a moral imperative. I would argue that in general Charlie's way of thinking is exactly what liberal arts should be, an array of mental models from different disciplines, including the sciences. To be educated in today's world you have to know some science and math.
Charlie Munger at the Daily Journal Annual meeting.
I went to the Daily Journal Meeting, on September 10. Charlie Munger was great, as always. The room was full. Charlie welcomed us with a comment that this was the largest meeting of the Daily Journal ever (they did not even have enough chairs!)
"Welcome to a few shareholders and a lot of groupies"
I will write up my full notes, but here are some choice quotes and paraphrases from the master!
He compared the Journal's old auditors, who held up the annual report by months, to a doctor he had (I assume as a child). The man was a surgeon skilled in fixing hernias, so he kept feeling around Charlies groin, when all Charlie had was a nose bleed.
Speaking of the old auditors, CM said that "We get along with people we admire...[but] I'm old and I can't disguise that there are people I don't like"
"...it was the audit from hell...which was red meat to the commissioned sales force of our competitors..." (The government software business that the Daily Journal has.)
"...the auditors were not malevolent...but it was like elephants [marching] through a barnyard..."
(Variation on Warren's oft repeated comment about 7 foot fences), "We don't try to jump 7 foot fences, we step across puddles to reach for gold.
Answering Jason Zweig of the Wall Street Journal on the difficulties for investors today versus earlier times, [In US markets with a small enough investment base] the shrewd will always [be able to] figure something out, that will never go away.
"Welcome to a few shareholders and a lot of groupies"
I will write up my full notes, but here are some choice quotes and paraphrases from the master!
He compared the Journal's old auditors, who held up the annual report by months, to a doctor he had (I assume as a child). The man was a surgeon skilled in fixing hernias, so he kept feeling around Charlies groin, when all Charlie had was a nose bleed.
Speaking of the old auditors, CM said that "We get along with people we admire...[but] I'm old and I can't disguise that there are people I don't like"
"...it was the audit from hell...which was red meat to the commissioned sales force of our competitors..." (The government software business that the Daily Journal has.)
"...the auditors were not malevolent...but it was like elephants [marching] through a barnyard..."
(Variation on Warren's oft repeated comment about 7 foot fences), "We don't try to jump 7 foot fences, we step across puddles to reach for gold.
Answering Jason Zweig of the Wall Street Journal on the difficulties for investors today versus earlier times, [In US markets with a small enough investment base] the shrewd will always [be able to] figure something out, that will never go away.
Subscribe to:
Posts (Atom)