A Quote by Charlie Munger
[With] closet indexing....you're paying a manager a fortune and he has 85% of his assets invested parallel to the indexes. If you have such a system, you're being played for a sucker.
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Detailed analytical indexing is generally the hallmark of good back-of-the-book indexes.
If God was the owner, I was the manager. I needed to adopt a steward's mentality toward the assets He had entrusted - not given - to me. A steward manages assets for the owner's benefit. The steward carries no sense of entitlement to the assets he manages. It's his job to find out what the owner wants done with his assets, then carry out his will.
Indexing is a successful approach to investing not because it's simple, but because it has performed so much better than the average active manager (the opposite of indexing), and the simplicity is just an added bonus.
The objective of the customer is not being met if the fund managers are diversifying their assets into hundreds of businesses. If they do this, they are typically performing close to the indexes. But that's not the way wealth is created.
Whether you agree or disagree with privatization, two things are obvious. First, taxpayers need to be asking more and better questions before handing over control of critical public assets like a highway, an airport, or a parking meter concession. And second, Uncle Sam is being played for a sucker.
In one week, I went from being a girl who owed a guy thousands of dollars - my manager Anthony was paying for my outfits, paying for my food; I was sleeping in his parents' basement - to taking meetings with every major label in America. The next morning, I had a record deal and wrote him a cheque to pay back all that money.
I'm making a case against how money managers are handling customers' money. The objective of the customer is not being met if the fund managers are diversifying their assets into hundreds of businesses. If they do this, they are typically performing close to the indexes. But that's not the way wealth is created.
I think it’s unfair that people can’t give assets to whoever they want. When I die, my assets can go to my wife. And a gay person — you ought to have a system where maybe you can just say, ‘You can give your assets to anybody you want.’
I think it's unfair that people can't give assets to whoever they want. When I die, my assets can go to my wife. And a gay person - you ought to have a system where maybe you can just say, 'You can give your assets to anybody you want.'
Federal prison, if you get any of it, you're going to have to do 85% of it. And the reason why I called it that is because I had a friend who got sent to the federal joint and his whole... it wasn't about him being in jail. He cried about the 85%.
As income from work has become more concentrated in America, the super rich have invested in businesses, real estate, art, and other assets. The income from these assets is now concentrating even faster than income from work.
I had twelve years as a Tottenham player under Bill Nicholson and could not have wished to have played for a better manager. I can still hear his wise words in my head when I am out on the training ground as a manager myself.
Some people have made a fortune by being employed. Jerry Bruckheimer does not own his content. Warner Bros. owns his shows. They are on CBS, and he makes a fortune.
Nobody wants to be passive; indexing is not passive - much more goes into indexing than watching a stock become the next buggy whip.
And above all, above all, honest work must be rewarded by a fair and just tax system. The tax system today does not reward hard work: it penalizes it. Inherited or invested wealth frequently multiplies itself while paying no taxes at all. But wages on the assembly line or in farming the land, these hard-earned dollars are taxed to the very last penny.
The manager sits down with me; I sit down with the board. We assess the success of the year. The manager assesses whose coming through the academy system. His job is to look at what is happening in European and world football.
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