Quotes from Charles T. Munger

I think that, every time you see the word EBITDA, you should substitute the words "bullshit earnings.

The great algorithm to remember in dealing with this tendency is simple: an idea or a fact is not worth more merely because it's easily available to you.

It's the work on your desk. Do well with what you already have and more will come in.

Man's imperfect, limited-capacity brain easily drifts into working with what's easily available to it. And the brain can't use what it can't remember or when it's blocked from recognizing because it's heavily influenced by one or more psychological tendencies bearing strongly on it … the deep structure of the human mind requires that the way to full scope competency of virtually any kind is to learn it all to fluency—like it or not.

We have three baskets: in, out, and too tough. … We have to have a special insight, or we'll put it in the "too tough" basket.

We both insist on a lot of time being available almost every day to just sit and think. That is very uncommon in American business. We read and think. So Warren and I do more reading and thinking and less doing than most people in business.

An example of a really responsible system is the system the Romans used when they built an arch. The guy who created the arch stood under it as the scaffolding was removed. It's like packing your own parachute.

Crowd folly, the tendency of humans, under some circumstances, to resemble lemmings, explains much foolish thinking of brilliant men and much foolish behavior.

Pain-Avoiding Psychological Denial One should recognize reality even when one doesn't like it.

It's not possible for investors to consistently outperform the market. Therefore you're best served investing in a diversified portfolio of low-cost index funds [or exchange-traded funds].

Warren talks about these discounted cash flows. I've never seen him do one.

Forgetting your mistakes is a terrible error if you're trying to improve your cognition. Reality doesn't remind you. Why not celebrate stupidities in both categories?

The reason we avoid the word "synergy" is because people generally claim more synergistic benefits than will come. Yes, it exists, but there are so many false promises. Berkshire is full of synergies - we don't avoid synergies, just claims of synergies.

It's not the bad ideas that do you in, it's the good ideas. And you may say, 'That can't be so. That's paradoxical. What he [Graham] meant was that if a thing is a bad idea, it's hard to overdo. But where there is a good idea with a core of essential and important truth, you can't ignore it. And then it's so easy to overdo it. So the good ideas are a wonderful way to suffer terribly if you overdo them

It's not supposed to be easy. Anyone who finds it easy is stupid.

Own your work and compound credibility.