Charlie Munger: Boom and bust is normal
Charlie Munger's memorable Quotes from this interview: This is the third time that Warren and I have seen our holdings in Berkshire go down, top tick to bottom tick, by 50%, I think it's in the nature of long term shareholding, of the normal vicissitudes in worldly outcomes and in markets, that the long term holder has his quoted value of the stock go down by say 50%. I think you can argue that if you're not willing to react with equanimity to a market price decline of 50% two or three times a century, you're not fit to be a common shareholder and you deserve the mediocre result you are going to get compared to the people who do have the temperament, who can be more philosophical about these market fluctuations.
Charlie Munger is Warren Buffett's long-time business partner, and the Vice-Chairman of Berkshire Hathaway. Like Buffett, he was born in Omaha, but became a lawyer in Los Angeles before meeting Buffett, and becoming a fellow investor. The two spent many hours on the phone together, discussing business, and evolving the approach to investing that has paid off so spectacularly for them both. Today, Munger says he may only speak to Buffett once a week, but his key influence on the success of Buffett's enterprise over many decades is undisputed.