To us, investing is the equivalent of going out and betting against the pari-mutuel system. We look for a horse with one chance in two of winning, and that pays three to one. In other words, we're looking for a mispriced gamble. That's what investing is, and you have to know enough to know whether the gamble is mispriced.
Charlie MungerIt's stupid the way people extrapolate the past -- and not slightly stupid, but massively stupid.
Charlie MungerMost people early achieve and later intensify a tendency to process new and disconfirming information so that any original conclusion remains intact. They become people of whom Philip Wylie observed: "You couldn't 't squeeze a dime between what they already know and what they will never learn."
Charlie MungerOver many decades, our usual practice is that if something we like goes down, we buy more and more. Sometimes something happens, you realize youโre wrong, and you get out. But if you develop correct confidence in your judgment, buy more and take advantage of stock prices.
Charlie Munger