Charlie Munger on his approach to investment:
"Like Warren and me, he was comfortable with concentration and bought only a few things that he understood well."- Charlie Munger
Insight: Charlie Munger said that the secret to the longterm success of Berkshire Hathaway was the ability to "generate funds at 3 percent and invest at 13". Virtually all of Berkshire's investment capital has been generated internally.
Insight: Charlie Munger said on Berkshire: "Unlike operations (which are very decentralised), capital allocation at Berkshire is highly centralised.". Berkshire had a mix of very tight and very loose controls.
"We don’t try to do acquisitions, we wait for no-brainers."- Charlie Munger
Principle: Be patient until the odds are stacked highly in your favour.