AUDIENCE MEMBER 00:08
When you’re assessing the quality of a business do you place more emphasis on quantitative metrics such as return on invested capital or qualitative ideas like brand strength or quality of management?
CHARLIE MUNGER 00:20
Well we pay attention to qualitative metrics and we also pay attention to other factors. Generally, we like to pay attention to whatever’s important in the particular situation and that varies from situation to situation.
We’re just trying to have that ‘uncommon sense’ I’m talking about. And part of our uncommon sense is just to refer a lot of stuff to the ‘too hard’ pile.
AUDIENCE MEMBER 00:53
The simple life is the obvious right answer, but most of America ends up like Mozart, in debt and overspending. How did you maintain the discipline to live the simple life in the face of all these other temptations?
CHARLIE MUNGER 01:07
I was born this way. (Laughter)