Collection: Charlie Munger - #176 'What Really Works In Life Is Win-Win'



[Transcript]

JACK DANGERMOND 00:00

One time you mentioned that you have a particular way of making deals with people, your friends, business deals. Could you sort of express that to this crowd? You know, your sort of philosophy about – do you try to win at all cause? What is your –


CHARLIE MUNGER 00:17

No, no, no, no.


Again, what really works in life is win-win and that requires some sensitivity to the other fellows' way of thinking and his needs. And but win-win is the only formula that really will work on and on, and on. And when it really starts working when two people trust each other.


Imagine, take an operating theater at the Mayo Clinic, the whole damn group trust one another. There's not a lot of lawyers [Inaudible], they just know what to do and when to do it, who to call after, what help... Everybody does what they're supposed to and so on.


So we're trying to get these win-win relations. And of course, I see it all the time.


Costco has this reputation – I'm a director of Costco – and Costco has this reputation of being a fairly tough buyer. I don't regard them as that tough, they are a lot of people who are richest small suppliers at Costco. And but Costco's into win-win. And that's what really works.


JACK DANGERMOND 01:33

Yeah, it's win-win with their customers, but it's also win-win with their suppliers, and it's also win-win with their employees.


CHARLIE MUNGER 01:39

Absolutely, everybody has to win-win. And Peter Kaufman, you know, well –


JACK DANGERMOND 01:44

Peter was here a few weeks ago, did anybody see Peter? He's the close friend of Charlie.


CHARLE MUNGER 01:50

Peter is the element win-win operator and the last person I want to compete with in life is Peter. He's just take such good care of the customers. I've never heard any complaint from Peter's customers except his price is high. Everything else about the business is perfect.


(Source: https://youtu.be/Rh1WCzfCP24)

 

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