A Quote by Charlie Munger
The beauty of a financial institution is that there are a lot of ways to go to hell in a bucket. You can push credit too far, do a dumb acquisition, leverage yourself excessively - it's not just derivatives [that can bring about your downfall].
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The use of a growing array of derivatives and the related application of more-sophisticated approaches to measuring and managing risk are key factors underpinning the greater resilience of our largest financial institutions... Derivatives have permitted the unbundling of financial risks.
People far too often associate derivatives markets with mere speculation, but there are very legitimate businesses that need derivatives to protect themselves against risk.
I mean, we've always had gold bugs, but now we sort of realize that Treasure Bills might be in the same category. And we have derivatives like credit default swaps which are in this category, and we have derivatives like volatilities that are actually an asset class that we can invest in which are now - would out perform if we have another financial crisis.
Well, my dad did a lot of Kung Fu when I was growing up, so he taught me a lot about mental toughness. Ways to slow your heart rate down, slow your breathing down to take control of your body so you can push yourself to the next limit.
When you lose control of risk at a financial institution, you do a variety of unfortunate credit extensions or purchases - and all of a sudden, you've blown up your business.
In my industry, everybody wants to know everything about you, and it's just dumb. I think the only way of maintaining some of that mystique is by not giving away too much about yourself. It has served me well so far. I never want to feel up for grabs.
In my industry, everybody wants to know everything about you, and its just dumb. I think the only way of maintaining some of that mystique is by not giving away too much about yourself. It has served me well so far. I never want to feel up for grabs.
Your ancestors fought for you to have a share in that institution over there. It's yours. See the school board, and every Friday night hold your meetings there. Have your wives clean it up Saturday morning for the children to enter Monday. Your organization is not a praying institution. It's a fighting institution. It's an educational institution along industrial lines. Pray for the dead and fight like hell for the living!
What's beautiful about the actual acting class environment is that you can use it to push through everything: push your voice, push your inhibitions, push your fears, push your confidence, push your vulnerability, push your silences.
From the 1990s onward, the financial sector created a vast array of instruments designed to separate investors from their money, financial derivatives of an ever-increasing level of complexity. At some point, this complexity reached a point where even the creators of the derivatives themselves didn't understand them.
The Fed contributed to the financial crisis, keeping interest rates too low for too long. I give them credit for responding and stabilizing the economy and the financial sector during the crisis. But then they tried to do too much with quantitative easing that went on forever, just dramatically exploding their balance sheets.
If you want to be your best, spend a lot of time exploring what is more than enough. Push yourself until the bar is lying immobile across your chest. Push yourself right off the edge of your capacity.
You must find something you want to live for that's bigger than yourself - a mission - whether it's your children, a business, a non-profit, whatever. That pulls you to achieve, which is far more sustainable than to push yourself to. You can only push yourself for so long.
Over and over again, financial experts and wonkish talking heads endeavor to explain these mysterious, 'toxic' financial instruments to us lay folk. Over and over, they ignobly fail, because we all know that no one understands credit default obligations and derivatives, except perhaps Mr. Buffett and the computers who created them.
No one anticipates divorce when they're exchanging vows, and it can be devastating emotionally and financially. To ease the financial side of the blow, you need to maintain your financial identity in your relationship. That means having your own credit history - you need your own credit card - and your own savings and retirement accounts.
Busyness, I feel increasingly, is the writer's curse and downfall. You read too much and write too readily, you become cut off from your inner life, from the flow of your own thoughts, and turned far too much towards the outside world.
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