Collection: Charlie Munger - #98 'Stock Market Today'



So one of the things that connects –




Connects Caltech to investing is of course the process of discovery, which creates new technologies. And for an economic historian, one thing that we’re very aware of is that technological change has driven a lot of the growth of the American economy over the last several centuries. But from your perspective as an investor, what have been the most dramatic transformation you’ve seen over those 75 years that Tom Rosenbaum reminded us that you’ve been connected to us, but also been living in Los Angeles.


Well, of course there have been huge booms and huge bust, and that has been very interesting. And of course the government has tried to do things that will dampen down the fluctuations and make recoveries from the busts happen faster. And of course that’s caused a fair amount of inflation in a life that’s been as long as mine.

What’s happening in the investment field is of course that so many people have gone into it and people have made so much money and it’s driven an almost frenzy of activity in the investment field.

When I was young, there was practically nobody in it and they weren’t very smart, and now almost everybody’s smart. Even a Caltech graduate, a good proportion of them are sucked into finance by the money. And so that’s been a hugely important development.

I don’t welcome it myself at all. I don’t think we want the whole world trying to get rich by outsmarting the rest of the world in marketable securities, but that’s what’s happened.

And there’s been frenzies of speculation and so on, so it’s been very interesting, but it’s not been all good.



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