Charlie Munger 2016 Q&A Transcript

May 7, 2016

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Someone took the time to take notes and type out Charlie’s Q&A from The Daily Journal Corporation annual meeting.

He answers a total of 36 questions, ranging from business to politics to life philosophy.

All the answers were great. Here are three that I loved.

If he could provide a mathematical formula to calculate intrinsic value of a company to invest in:

We don’t use numeric formulas that way. We take into account quality factors. It’s like a bridge hand, you have to think about a lot of things.

There is never going to be a formula. If that worked, every mathematical person would be rich, but that’s not the way it works.

How he avoids errors in daily life:

There are two things Warren and I have done. One is that we spend a lot of time thinking. Our schedules are not that crowded, and we sit around and think constantly. In a way, we look more like academics than businessman. My system has always been to sit quietly for a few hours.

I don’t mind if there are long period where nothing happens. Warren’s the same way. He’s sitting on top of an empire now. Sometimes he clears his schedule for a haircut. His calendar will say “Tuesday: Haircut day”.

All you people are very good at multitasking, and that’s fine if you are the chief nurse at a hospital. Otherwise, multitasking is bad. Juggling three balls at once is not ideal. Luckily, a lot of you are so obscure you’re not that busy (audience laughs).That advice worked for me, and it should work for you. If it didn’t work for me, I didn’t have a backup plan. I was not going to dance lead in the Bolshoi Ballet.

But I do think that the constant search for wisdom and the right reactions can help. Being angry will never serve you. You can apply that to your life. But it’s hard to do. The nature of ordinary results is that they’re ordinary.

If he could create a list of book recommendations:

I don’t want to be a book recommender. It would be quite time consuming.

Charlie Munger 2016 Daily Journal Meeting