Berkshire Hathaway Inc. (BRK.B): The Eight Smartest Things Munger Has Ever Said

5. On executive leadership:

Some people are more teachable than others. This is also true of dogs, however, so take it as you wish. The executive level should be a tough meritocracy. It shouldn’t be easy. I look for people I can trust. Hiring people you can’t trust is like starting off by dropping a spider in your bosom.

6. On gold:

I don’t have the slightest interest in gold. I like understanding what works and what doesn’t in human systems. To me that’s not optional; that’s a moral obligation. If you’re capable of understanding the world, you have a moral obligation to become rational. And I don’t see how you become rational hoarding gold. Even if it works you’re a jerk.

7. On investing:

It’s in the nature of stock markets to go way down from time to time. There’s no system to avoid bad markets. You can’t do it unless you try to time the market, which is a seriously dumb thing to do. Conservative investing with steady savings without expecting miracles is the way to go.

8. On pundits:

People have always had this craving to have someone tell them the future. Long ago, kings would hire people to read sheep guts. There’s always been a market for people who pretend to know the future. Listening to today’s forecasters is just as crazy as when he king hired the guy to look at the sheep guts.

The article 8 of the Smartest Things Charlie Munger Has Ever Said originally appeared on Fool.com.

Fool contributor Morgan Housel has no position in any stocks mentioned. The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway.

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