ANDY SERWER 00:00
So you just had the annual meeting. And I have to ask you what your favorite moments of that were.
CHARLIE MUNGER 00:05
What I like is that both the shareholders and employees of Berkshire are so extremely enthusiastic. And it's not just that they made a lot of money and have nice careers. They think they're on the right side.
ANDY SERWER 00:20
And, you know, they come there to hear you guys talk all day. And –
CHARLIE MUNGER 00:27
Yeah, it's like a cult.
ANDY SERWER 00:29
It's like a cult?
CHARLIE MUNGER 00:30
ANDY SERWER 00:31
In a good way, though?
CHARLIE MUNGER 00:33
Yeah, a good cult. Yes, it's a good cult.
ANDY SERWER 00:35
Okay. I mean, and the stuff that they hear – some of it's new, some of it's old, and a lot of it is common sense. And you were talking a lot about--
CHARLIE MUNGER 00:42
All of it is common sense.
ANDY SERWER 00:44
CHARLIE MUNGER 00:44
But of course, when people use the word "common sense," what they mean is uncommon sense. Because the standard human condition is ignorance and stupidity. And when they say, old Joe has common sense, what they mean is he has uncommon sense.
ANDY SERWER 01:00
I guess it's a bit of a misnomer then.
CHARLIE MUNGER 01:03
It really is.
ANDY SERWER 01:04
So, yeah, why is it that people can't think clearly about investing or decisions in their lives?
CHARLIE MUNGER 01:12
Well, they don't think very well about sex or gambling either. You know, I think the standard human condition has a lot of miscognition.
ANDY SERWER 01:22
And there are ways to make hay of that or--
CHARLIE MUNGER 01:26
Yes. You take advantage of other people. You can improve your own life by eliminating your miscognitions.
"When people use the word "common sense," what they mean is uncommon sense. Because the standard human condition is ignorance and stupidity. And when they say, old Joe has common sense, what they mean is he has uncommon sense." ~Charlie Munger