Things That Don’t Make Sense (LINK)
To quote Jason Zweig: "An extraordinary & exemplary note from Danny Kahneman" (LINK)
Morgan Creek Capital Management's Q4 Letter (LINK)
A new spike in mortgage delinquencies spells trouble (video and article) [H/T Matt] (LINK)
a16z Podcast: Securing Infrastructure and Enterprise Services (LINK)
Daniel Dennett: "From Bacteria to Bach and Back: The Evolution of Minds" | Talks at Google (video) (LINK)
Some early notes from today's Daily Journal Annual Meeting, via the following people on Twitter: @BrentBeshore, @TheCharlieton, @AlexRubalcava, @EricJorgenson.
[Below are some of the quotes that stood out to me. They are from the notes above, and thus possibly not exactly as Charlie Munger said them...]
"Deferred gratification really works if you want to get better and better."
"I've never succeeded in something I wasn't interested in."
"The success of Berkshire came from making two decisions a year over 50 years."
"Diversification is great for people who know nothing...one (investment) will work if you do it right."
"You only need one cinch. When you get the chance, step up to the pie cart with a big pan."
"We're too soon old and too late smart. That's the biggest problem we have."
"I don't think operating over many disciplines is a good idea for most people...get good at something that society rewards."
"Even if you specialize, you should still spend 10-20% of your time learning the big ideas of the major disciplines."
"I do not want a proctologist who knows Schopenhauer. On the other hand, a life devoted solely to proctology isn't much of a life."
"If you think you know what the state of the payments system 10 years out you're in a state of delusion."
"Both Warren and I know you can't trust numbers put out by the banking industry."
"We have a lot of businesses that neither Warren or I could run, but we've gotten good at judging which people can succeed."
"One of the reasons I don't go around talking about how the Fed should work is because I'd mostly be pounding my own ideas into my head."
"Am I comfortable with a non-diversified portfolio? Yes. The Mungers have three stocks: Berkshire, Costco, and Li Lu's fund."
"Arrange your affairs so you can handle a 50% decline with aplomb...if it never happens to you, you're not being aggressive enough."
"The value of my partnership went down 50%...it's a mark of manhood. You better be able to handle it without much fussing."
"I like the Buffett system (0% fee, 6% hurdle, 25% gain-share). I'm looking at at Mohnish Pabrai who still uses it. I wish it would spread."
"In many areas of life the only way to win is to grind away and work hard for a very long time."