Berkshire's 40 Years Wisdom of Life 3

"If a management makes bad decisions in order to hit short-term earnings targets, and consequently gets behind the eight-ball in terms of costs, customer satisfaction or brand strength, no amount of subsequent brilliance will overcome the damage that has been inflicted. Take a look at the dilemmas of managers in the auto and airline industries today as they struggle with the huge problems handed them by their predecessors. Charlie is fond of quoting Ben Franklin’s “An ounce of prevention is worth a pound of cure.” But sometimes no amount of cure will overcome the mistakes of the past." -- Warren Buffett, Letter to Shareholders, Berkshire Hathaway Inc., 2005.

Worldly Wisdom From Charles Munger I

This is a link of the speech of Charles T. Munger, Vice Chairman of Berkshire Hathaway Inc. to his audience in USC Business School in 1994.

The speech is quite long though it's an essence of a brilliant man equipped with multi-disciplinary knowledge.

Charles T. Munger often quoted as incarnation of Benjamin Franklin, one of the very few brilliant man equipped with multi-disciplinary knowledge as well.

Some excerpts from the speech:

“Just the way if you want to become a golfer, you can't use the natural swing that broad evolution gave you. You have to learn-- to have a certain grip and swing in a different way to realize your full potential as a golfer.”

“If you always tell people why, they'll understand it better, they'll consider it more important, and they'll be more likely to comply. Even if they don't understand your reason, they'll be more likely to comply.”