Collection: Charlie Munger - #11 'Wretched Excess Private Equity Sector'

Video Link: https://youtu.be/g6Udie5fI9M

In this episode, Charlie Munger was asked on what advise do you give to your family starting careers in private equity and what advise would you give to young people as a whole starting careers in private equity sector?

In this episode, you’ll learn:

  • Why Charlie Munger dislike wretched excess in the private equity sector?

  • Why you shouldn't mislead people?

  • How will the wretched excess harms the country?

To check out all Collection: Charlie Munger <click here>



Many of my classmates are considering careers in private equity and venture capital. You yourself mentioned that some of your family members are in private equity.

You also mentioned that you see a lot excess in that sphere. What advise do you give to your family starting careers in private equity and what advise would you give to young people as a whole starting careers in those sectors? Thank you.


My family is not very interested in what I think about their career choices. I respect their disinterest.

But I do think we have way too much wretched excess. Any time you have any new names to sort of mislead people, like adjusted EBITDA, think of the basic intellectual dishonesty that comes with it. When you start telling about adjusted EBITDA. You’re almost announcing you’re a flake.

And yet our respectable people talk that way and charge fees for talking that way. It’s ridiculous. So I don’t like this wretched excess.

I don’t like all these transactions where one private equity group sells to another and the guys who really own it are just sort of raising the fees higher and higher over owning the same in the intellectual mix. It’s a lot that’s financed by its nature. The temptations are too great. It goes to wretched excess.

Of course, I don’t like it. I don’t think it’s good for the country. I would argue that the wretched excess that led to the Great Depression, which led to the rise of Hitler – I think we pay a big price eventually for wretched excess, stupidity, greed, and so forth.

I’m all for staying in control. In other words, I’m all for behaving a lot more like Confucius.

70 views0 comments
  • Facebook Social Icon
  • YouTube

Like & Follow YAPSS social media page to get notify on the latest update.

Disclaimers: YAPSS/YAPSS.com is not managed by a registered investment advisor or a broker/dealer. Information from YAPSS/YAPSS.com and any content posted by YAPSS/YAPSS.com is for entertainment & education purposes only and not a buy or sell of security recommendation. In no event shall YAPSS/YAPSS.com be liable to any damages arising out from the use of YAPSS/YAPSS.com content or material published or available on YAPSS/YAPSS.com. Lastly, YAPSS/YAPSS.com is in no way guaranteed for accuracy or completeness of published information and hence, please do your own due diligence.

©2020 by YAPSS. All Right Reserved.