So my next set of questions are more on the finance side. Paul Goodson, who is a bachelor’s degree of science in 1975, asks, “Do you expect the next 10 years to have lower returns in the equity markets than the last 10?” He doesn’t give us an idea why.
CHARLIE MUNGER 00:16
The answer is yes.
Could you give us a hint as to why that might come to pass?
CHARLIE MUNGER 00:21
Yes. Because so many people are in it and the frenzy is so great. The systems of management, the reward systems, are so foolish that I don’t think it’s going to work at all. I think that the returns will go down, yes. In real terms, the returns will be lower.
Keyword = "Real Terms"