A Quote by Charlie Munger
Finding a single investment that will return 20% per year for 40 years tends to happen only in dreamland. In the real world, you uncover an opportunity, and then you compare other opportunities with that. And you only invest in the most attractive opportunities. That's your opportunity cost. That's what you learn in freshman economics. The game hasn't changed at all. That's why Modern Portfolio Theory is so asinine.
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The disciplined approach to pursuing and selecting the most attractive investment opportunities continues to distinguish ExxonMobil. We are long-term driven, and we're patient. And we're not opportunity-constrained.
Every single problem that you have in your life, is the seed of an opportunity for some greater benefit. Stay alert to opportunities by being grounded in the wisdom of uncertainty! When your preparedness meets opportunity the solution will spontaneously appear!
To invest successfully, you need not understand beta, efficient markets, modern portfolio theory, option pricing or emerging markets. You may, in fact, be better off knowing nothing of these. That, of course, is not the prevailing view at most business schools, whose finance curriculum tends to be dominated by such subjects. In our view, though, investment students need only two well-taught courses - How to Value a Business, and How to Think About Market Prices.
The lack of opportunity is ever the excuse of a weak, vacillating mind. Opportunities! Every life is full of them. Every newspaper article is an opportunity. Every client is an opportunity. Every sermon is an opportunity. Every business transaction is an opportunity, an opportunity to be polite, an opportunity to be manly, an opportunity to be honest, an opportunity to make friends.
The problem... is emblematic of what hasn't changed during the equal opportunity revolution of the last 20 years. Doors opened; opportunities evolved. Law, institutions, corporations moved forward. But many minds did not.
Obviously, consideration of costs is key, including opportunity costs. Of course capital isn't free. It's easy to figure out your cost of borrowing, but theorists went bonkers on the cost of equity capital. They say that if you're generating a 100% return on capital, then you shouldn't invest in something that generates an 80% return on capital. It's crazy.
When you consider the sheer magnitude of investable equities to choose from in the world's emerging markets, you realize that finding one that looks attractive enough to warrant investing your faith and assets in is as formidable a task as finding a needle in a haystack. Fortunately, researching investment opportunities is a lot more interesting than digging for needles in haystacks.
If you're going to buy something which compounds for 30 years at 15% per annum and you pay one 35% tax at the very end, the way that works out is that after taxes, you keep 13.3% per annum. In contrast, if you bought the same investment, but had to pay taxes every year of 35% out of the 15% that you earned, then your return would be 15% minus 35% of 15%-or only 9.75% per year compounded. So the difference there is over 3.5%. And what 3.5% does to the numbers over long holding periods like 30 years is truly eye-opening.
You're only as good as your opportunities in this game and you're lucky to get some opportunities.
You take every opportunity given you in this world, even if you have too many opportunities. One day, the opportunities stop, you know.
When it comes to opportunities, your father or mother can only set up a meeting for you. However, your opportunities will only materialise if the star kid is talented or suits the role.
Opportunities do not come with their values stamped upon them.... To face every opportunity of life thoughtfully, and ask its meaning bravely and earnestly, is the only way to meet supreme opportunities when they come, whether open-faced or disguised.
Here is a myth for you if myths are your pleasure: "There is no more opportunity in this world." Most people held this false belief fifty years ago, the majority agreed with it five years ago, and practically everyone clings to it today. Clearly, this myth will also be the screaming rage in the future. Hang on to this myth, and you are destined to miss great opportunities for the rest of your life.
...where legitimate opportunities are closed, illegitimate opportunities are seized. Whatever opens opportunity and hope will help to prevent crime and foster responsibility.
The advice that I can give anyone wanting to be in the biz: do all the work, learn your craft. There are no shortcuts. If you stay with it, you will get an opportunity. Whether you make the most of an opportunity depends on if you are prepared. Learn your craft, every aspect of it. Eat it, drink it, sleep it, then when you are the most prepared, you can make the most of it.
According to UNESCO: there are over 154 million children in the world deprived of education due to poverty, slavery, racism, religious extremism, gender discrimination, and geographical isolation. The cost to educate a child in the third world is about $ 1 per month per child. To achieve global literacy, the investment would be $ 8 billion per year for 15 years.
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