I think of days as to the death of John Templeton and what surveillance did, and we do this today with Charlie Munger. We had Terry Weisman on great to have Sam Stovall on and Doug cass with his intimate relationship with Berkshire Hathaway. We finished strong with the Howard Marx, chairman of oak Tree Capital Management, and I must point out author of not one, two, but three important books on investing of What to Do and just as importantly Howard What Not to Do. Howard on Charlie Munger Getting the odds on your side? How did Charlie Munger get the odds on his side?

I think of days as to the death of John Templeton and what surveillance did, and we do this today with Charlie Munger. We had Terry Weisman on great to have Sam Stovall on and Doug cass with his intimate relationship with Berkshire Hathaway. We finished strong with the Howard Marx, chairman of oak Tree Capital Management, and I must point out author of not one, two, but three important books on investing of What to Do and just as importantly Howard What Not to Do. Howard on Charlie Munger Getting the odds on your side? How did Charlie Munger get the odds on his side?

He started off with a brilliant mind and a brilliant partner. He intensively studied the financials for thinking about the long term. He never tried to guess what a company or a stock would do in the short term, and he held for many years. You know, he was a great practitioner. Sit on your hands, and he did it flawlessly.

He started off with a brilliant mind and a brilliant partner. He intensively studied the financials for thinking about the long term. He never tried to guess what a company or a stock would do in the short term, and he held for many years. You know, he was a great practitioner. Sit on your hands, and he did it flawlessly.

In the modern day, in the modern media, I remember reading those annual reports Howard. Years ago, there was no financial media, there was no blogging internet. The short termism. We're living it now. What is the lesson of Charlie Munger's long termism.

In the modern day, in the modern media, I remember reading those annual reports Howard. Years ago, there was no financial media, there was no blogging internet. The short termism. We're living it now. What is the lesson of Charlie Munger's long termism.

Well, if you want to hit the long ball, you have to be very patient, and you know, when the stock moves up the first twenty percent, you can't start taking profits.

Well, if you want to hit the long ball, you have to be very patient, and you know, when the stock moves up the first twenty percent, you can't start taking profits.

Charlie and Warren have held things for decades.

Charlie and Warren have held things for decades.

And the other thing is they were and Charlie always talked about this, you have very few moonshots. Charlie said within the last year that most of his wealth came from four decisions. And so you know what would have happened if he would have started trimming those four decisions early, he certainly would not have accomplished what he did.

And the other thing is they were and Charlie always talked about this, you have very few moonshots. Charlie said within the last year that most of his wealth came from four decisions. And so you know what would have happened if he would have started trimming those four decisions early, he certainly would not have accomplished what he did.

And I think Warren would say the same thing.

And I think Warren would say the same thing.

Maybe the number four would be a little different with Warren, but you know, you know, Warren's famous for having said, put all your eggs in one basket, and I watched the basket really closely, and I think that it wasn't one basket. But the idea of concentration and patience coupled with good decisions makes for a great success. You know, a concentration and patience don't accomplish anything if you can't make above average investment decisions. But putting it all together is the formula for success.

Maybe the number four would be a little different with Warren, but you know, you know, Warren's famous for having said, put all your eggs in one basket, and I watched the basket really closely, and I think that it wasn't one basket. But the idea of concentration and patience coupled with good decisions makes for a great success. You know, a concentration and patience don't accomplish anything if you can't make above average investment decisions. But putting it all together is the formula for success.

Howard, you wrote in some of your thoughts about Charlie Munger that he had very definite opinions, in particular regarding the investment management industry. He viewed the industry with considerable skepticism, and while a member of it, I found myself in agreement with him more often than not. What exactly are you talking about in particular?

Howard, you wrote in some of your thoughts about Charlie Munger that he had very definite opinions, in particular regarding the investment management industry. He viewed the industry with considerable skepticism, and while a member of it, I found myself in agreement with him more often than not. What exactly are you talking about in particular?

You know, I think both Charlie and Warren felt that our industry, relatively few members of it made substantial contributions to their clients wealth. Many more members were well paid. He was always one who questioned incentives. He says, you give me incentive, an incentive, I'll tell you the behavior. And and I think that, you know, I think that Warren and Charlie, if you their operation, they in fact Warren's ed quotes not a partnership, not a corporation of partnership. And they considered there there the people they manage money for their shareholders, to be their partners. And they considered themselves to be working for their partners and not themselves and their own wealth. And success was a byproduct of working of doing great work for the partners.

You know, I think both Charlie and Warren felt that our industry, relatively few members of it made substantial contributions to their clients wealth. Many more members were well paid. He was always one who questioned incentives. He says, you give me incentive, an incentive, I'll tell you the behavior. And and I think that, you know, I think that Warren and Charlie, if you their operation, they in fact Warren's ed quotes not a partnership, not a corporation of partnership. And they considered there there the people they manage money for their shareholders, to be their partners. And they considered themselves to be working for their partners and not themselves and their own wealth. And success was a byproduct of working of doing great work for the partners.

Uh.

Uh.

You know, I I like to put my sameself in the same boat. Those sentiments appeal to me greatly, and I've tried to follow that.

You know, I I like to put my sameself in the same boat. Those sentiments appeal to me greatly, and I've tried to follow that.

How difficult has it been to sort of to adapt the strategy to different eras When you had conversations with Charlie Munger, there are questions around tech and how that changed the investment thesis. How did they think about the changing concept of what a wonderful company looked like and what fair value was.

How difficult has it been to sort of to adapt the strategy to different eras When you had conversations with Charlie Munger, there are questions around tech and how that changed the investment thesis. How did they think about the changing concept of what a wonderful company looked like and what fair value was.

You know, you, on the one hand, you have to evolve with the times. On the other hand, you know they never went a full bore into the tech sector. You know their families are having made a lot of money with Apple, but you know, most tech, the way they said it, they put it on the too hard pile. And if you have if you understand that your success will come from small number of holdings, that means you don't need and thirty thirty, fifty sixty, You don't need to exploit all the sceptors.

You know, you, on the one hand, you have to evolve with the times. On the other hand, you know they never went a full bore into the tech sector. You know their families are having made a lot of money with Apple, but you know, most tech, the way they said it, they put it on the too hard pile. And if you have if you understand that your success will come from small number of holdings, that means you don't need and thirty thirty, fifty sixty, You don't need to exploit all the sceptors.

You just have to find a few great ones.

You just have to find a few great ones.

Of course, on the other hand, you know Tom said that we're you know, we're in a new era with all the communications we have. Part of what that means is that the world is a more interconnected, intelligent place. You know, back fifty years ago, we used to be able to exploit things nobody else knew. Today, there's very little information that doesn't make its way speedily around the world.

Of course, on the other hand, you know Tom said that we're you know, we're in a new era with all the communications we have. Part of what that means is that the world is a more interconnected, intelligent place. You know, back fifty years ago, we used to be able to exploit things nobody else knew. Today, there's very little information that doesn't make its way speedily around the world.

Howard to help us with one final question here to the management the future management of Berkshire Halthaway. They have a from COVID buildup of cash a four hundred and twelve billion out to half a trillion dollars five hundred and twenty five trillion. You and everybody else out there is living with explosive money market fund growth. You know the story in that forward here for Berkshire half way. What's the best use of there in our mounds of cash?

Howard to help us with one final question here to the management the future management of Berkshire Halthaway. They have a from COVID buildup of cash a four hundred and twelve billion out to half a trillion dollars five hundred and twenty five trillion. You and everybody else out there is living with explosive money market fund growth. You know the story in that forward here for Berkshire half way. What's the best use of there in our mounds of cash?

You know, the people who run Berkshire today and will run it tomorrow understand the limitations of size. All things being equal, size makes it harder to outperform. They have the best probability of outperforming of any company their size, But their size will matter. And you know one of my professors at University of Chicago, I asked him afterwards, how would you manage a big fund? He'd say, I would index the cord and manage the hell out of the periphery, and I would imagine that at their size, they'll have to move in the direction of something like that, although they will not give up on outperformance.

You know, the people who run Berkshire today and will run it tomorrow understand the limitations of size. All things being equal, size makes it harder to outperform. They have the best probability of outperforming of any company their size, But their size will matter. And you know one of my professors at University of Chicago, I asked him afterwards, how would you manage a big fund? He'd say, I would index the cord and manage the hell out of the periphery, and I would imagine that at their size, they'll have to move in the direction of something like that, although they will not give up on outperformance.

Howard Marx, thank you with the oak Tree Capital Management in remembrance of Charlie

Howard Marx, thank you with the oak Tree Capital Management in remembrance of Charlie