A Quote by Charlie Munger
It's a finite and very competitive world. All large aggregations of capital eventually find it hell on earth to grow and thus find a lower rate of return.
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Remember that accumulated knowledge, like accumulated capital, increases at compound interest: but it differs from the accumulation of capital in this; that the increase of knowledge produces a more rapid rate of progress, whilst the accumulation of capital leads to a lower rate of interest. Capital thus checks it own accumulation: knowledge thus accelerates its own advance. Each generation, therefore, to deserve comparison with its predecessor, is bound to add much more largely to the common stock than that which it immediately succeeds.
The biggest revenue target is the preferential rate for long-term capital gains, which raises a perennial question: Why should capital income be taxed at a much lower rate than ordinary income? Capital assets are owned overwhelmingly by the rich.
...all man's desired geometric progressions, if a high rate of growth is chosen, at last come to grief on a finite earth. And the social system for man on earth is fair enough, eventually, that almost all massive cheating ends in disgrace.
History reveals no civilized people among whom there was not a highly educated class and large aggregations of wealth. Large profits mean large payrolls.
Everything that from eternity has happened in heaven and earth, the life of God and all the deeds of time simply are the struggles for Spirit to know Itself, to find Itself, be for Itself, and finally unite itself to Itself; it is alienated and divided, but only so as to be able thus to find itself and return to Itself...As existing in an individual form, this liberation is called 'I'; as developed to its totality, it is free Spirit; as feeling, it is Love; and as enjoyment, it is Blessedness.
In my early days, fashion was considered a very high risk industry. The failure rate is very high. Trying to get capital and trying to find people who specialize in that industry is very difficult too.
When you think of policies that are going to address inequality of wealth, you have to be very thoughtful about what economists call "incidence of taxes." If most of the savings is being done by capitalists, and you tax the return on capital, then they will have less to invest. That would mean, over the long run, that the rate of interest would go up. That would therefore undo some of the intent to lower the income of capitalists.
Find time for thought, this is the source of strength.
Find time for the game, this is the secret of eternal youth.
Find time for reading, this is the Foundation of knowledge.
Find time to be friendly, this is the road to happiness.
Find time for dreams, they will pull your vehicle as the stars.
Find time to love and be loved in return, this is the privilege of the gods.
Find time to look around you, it's too short a day to be selfish.
Find time to laugh this is the music of the soul.
In order to access private capital, you have to provide competitive return on investment. In order to give competitive returns to investors, you've got to operate on a profitable basis and be thinking of yourself as a business.
Tax laws favor capital over labor, giving capital gains a lower rate than ordinary income. The rich get humongous mortgage interest deductions while renters get no deduction at all.
I know things like a 20% corporate tax rate will allow us to be more competitive in the global marketplace. That's what our competitors enjoy today around the world. And when we're more competitive, we win in the marketplace, and that allows us to invest and grow for the future.
Point is, you can't find a country on earth with a higher standard of living. You can't find a country higher than America. You can't find a place on earth where the opportunity to grow your standard of living, as an individual, is greater than the United States of America. Capitalism may not be perfect, but it's better than anything else that's out there.
And that, quite simply, is the issue. We live in a finite world with finite resources. Although it may sometimes seem quite big, earth is really very small - a tiny blue and green oasis of life in a cold universe.
It seems unwise to allocate a large portion of investable capital to any one deep value opportunity, even if the latter promises a large expected return.
A finite world can support only a finite population; therefore, population growth must eventually equal zero.
Experience conclusively shows that index-fund buyers are likely to obtain results exceeding those of the typical fund manager, whose large advisory fees and substantial portfolio turnover tend to reduce investment yields. Many people will find the guarantee of playing the stock-market game at par every round a very attractive one. The index fund is a sensible, serviceable method for obtaining the market's rate of return with absolutely no effort and minimal expense.
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