A Quote by Charlie Munger
An investment decision in the common stock of a company frequently involves a whole lot of factors interacting ... the one thing that causes the most trouble is when you combine a bunch of these together, you get this lollapalooza effect.
Related Quotes
The most common mistakes were investing in money market funds by people who were so scared at the prospect of managing their own funds that they picked the most conservative option, and their investments did not keep up with inflation. The second major mistake was being too heavily invested in their own company's stock, and buying when it was high and there was a lot of optimism about the company, and then having to sell it low when the company got in trouble.
It is a tenet of my investment style that, on the subject of common stock investment, maximizing the upside means first and foremost minimizing the downside. The deleterious effect of permanent capital loss on portfolio returns cannot be overstated.
The aggregate capital appears as the capital stock of all individual capitalists combined. This joint stock company has in common with many other stock companies that everyone knows what he puts in, but not what he will get out of it.
The most important thing about an astronaut is you have to take for a given a person's done pretty well in school, has the intelligence and all of that to learn new systems and new things. But after that, the most important thing I think is being able to get along with others. Flexibility and teamwork, those issues because as we fly longer and longer in space, those are really important factors, even on short shuttle missions, those are important factors, to put a crew together that can work together effectively as a team, that can get along.
In a large pharmaceutical company, where it's a big bet, you're going to need finance people to be involved in the decision-making because the investment can run into the hundreds of millions of dollars. You're going to have to run scenarios. You might even need agreement from the C.E.O. to make that type of decision. If it's an incremental, low-cost decision in a marketing-oriented company, it may be a very different set of stakeholders a lot further down in the organization.
Deciding to get back together with someone is a complicated and difficult decision. Just remember that the person you are getting back together with is the same person who, not long before, looked you in your beautiful face, took full stock of you and all your qualities, and told you that he was no longer in need of your company.
The stock market is but a mirror which provides an image of the underlying or fundamental economic situation. Cause and effect run from the economy to the stock market, never the reverse. In 1929 the economy was headed for trouble. Eventually that trouble was violently reflected in Wall Street.
If you have information that a company is not as good as its stock market valuation, you don't have a way to sell that stock unless you already own it. And so that information doesn't get incorporated in the company's stock price as fast if you don't allow short selling.
A company is a multidimensional system capable of growth, expansion, and self-regulation. It is, therefore, not a thing but a set of interacting forces. Any theory of organization must be capable of reflecting a company's many facets, its dynamism, and its basic orderliness. When company organization is reviewed, or when reorganizing a company, it must be loked upon as a whole, as a total system.
Whatever requires an undue amount of thought or trouble or involves a large expenditure of effort and causes our whole life to revolve, as it were, around solicitude for the flesh must be avoided by Christians.
If I own stock in your company and you move offshore for tax reasons I'm selling your stock. There are enough investment choices here.
Making one brilliant decision and a whole bunch of mediocre ones isn't as good as making a whole bunch of generally smart decisions throughout the whole process.
One common behavior of late Stage 3 [in the process of a company's decline] is when those in power blame other people or external factors- or otherwise explain away the data- rather than confront the frightening reality that the enterprise may be in serious trouble.
You get in trouble, you have to evaluate: Is it worth getting into trouble again? It's a lot easier to make that decision when you have a career at stake.
When a stock is selling at a discount to liquidation value per share, a near rock-bottom appraisal, it is frequently an attractive investment.
Insider trading is hard to prove. To be convicted, a person must have bought or sold a stock based on material information that is both unknown to the general public and likely to have had an important effect on a company's stock price.
Related Authors
Bill Gates Quotes
American
Businessman
Dieter F. Uchtdorf Quotes
German
Businessman
Elon Musk Quotes
South African
Businessman
Henry Ford Quotes
American
Businessman
Jim Rohn Quotes
American
Businessman
Joseph B. Wirthlin Quotes
American
Businessman
Mark Cuban Quotes
American
Businessman
Mark Zuckerberg Quotes
American
Businessman
Peter Drucker Quotes
American
Businessman
Richard Branson Quotes
British
Businessman
Russell Simmons Quotes
American
Businessman
Sam Altman Quotes
American
Businessman
Steve Jobs Quotes
American
Businessman
Tom Peters Quotes
American
Businessman
Walt Disney Quotes
American
Businessman
Warren Buffett Quotes
American
Businessman