How could economics not be behavioral? If it isn't behavioral, what the hell is it?
Charlie MungerRead
You must value the business in order to value the stock.
Interpretation
Understanding a business is crucial to properly valuing its stock.
Charlie Munger emphasizes that to accurately assess the worth of a company's stock, one must first appreciate the underlying business itself. This perspective highlights the importance of grasping the fundamentals of a business, such as its operations, market position, and potential for growth, before investing.
In practice
In a finance seminar discussing investment strategies.
How could economics not be behavioral? If it isn't behavioral, what the hell is it?
The world of derivatives is full of holes that very few people are really aware of. It's like hydrogen and oxygen sitting on the corner waiting for a little flame.
I believe in the discipline of mastering the best that other people have ever figured out. I don't believe in just sitting down and trying to dream it all up yourself. Nobody's that smart.
Economics is in many respects the queen of the soft sciences. It's expected to be better than the rest. It's my view that economics is better at the multi-disciplinary stuff than the rest of the soft science. And it's also my view that it's still lousy.
Look at this generation, with all of its electronic devices and multitasking. I will confidently predict less success than Warren, who just focused on reading.
Economics profession, they've been - they've been confident in various formulas, but economics is not physics. The same formula that works in one decade doesn't work in the next. Economics is a difficult subject.
I'm at the point where you look back on your life and reflect. I've always been an unbelievable critic of me. If we lost a game, I blamed myself every night. I'm very proud of some of the things I did as an athlete, as an executive.
I'm shocked every time that I've reached so many finals or won against so many players or whatever record it is. It strikes me and makes me obviously very happy and very proud that I've been able to do it for so many years at the highest of levels.
You know, I never looked down the road and said, 'Hey look, one day, the Hall of Fame.' It's always about playing each and every game 100 percent and I thank my teammates for getting me into the Hall because football is a team sport, not an individual sport.
It never entered my father's mind nor my mind ever to do a job other than at one's best ability.
Your brand name is only as good as your reputation
If you can prove that you're in that elite class on a consistent basis, it speaks volumes about a player's longevity. It also says that as a player, you were steady, stable, and great and that you deserve to be recognized.
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