It's human nature to extrapolate the recent past into the future, but it's terrible that managements go along with this.
Charlie MungerA Lesson on Elementary, Worldly Wisdom As It Relates To Investment Management & Business
Charlie MungerWe all are learning, modifying, or destroying ideas all the time. Rapid destruction of your ideas when the time is right is one of the most valuable qualities you can acquire. You must force yourself to consider arguments on the other side.
Charlie MungerI think there's an awful lot of twaddle and bullshit on EVA. The whole game is to turn retained earnings into more earnings. EVA has ideas about cost of capital that make no sense. Of course, if a company generates high returns on capital and can maintain this over time, it will do well. But the mental system as a whole does not work.
Charlie Munger