Charlie Munger

And they just programmed the computers to automatically You know, buy on one thing on the first up day and then sell before the end of the second day. And you just did it day after day after day. And every day the machine would, you know, the central clearing agent would say, your check today is $8,500,000. It's crazy. Your check tomorrow is $9,400,000. Well, what happens is that the ones...

And they just programmed the computers to automatically You know, buy on one thing on the first up day and then sell before the end of the second day. And you just did it day after day after day. And every day the machine would, you know, the central clearing agent would say, your check today is $8,500,000. It's crazy. Your check tomorrow is $9,400,000. Well, what happens is that the ones...

The easiest trade is to front run what you know what the index funds have to buy. And you know what it is exactly. They all know that. And the way they get their returns year after year is taking the leverage, the midday leverage up higher and higher and higher and higher.

The easiest trade is to front run what you know what the index funds have to buy. And you know what it is exactly. They all know that. And the way they get their returns year after year is taking the leverage, the midday leverage up higher and higher and higher and higher.

So they're making smaller and smaller profits on more and more volume, which gives them this big peak leverage risk, which I would not run myself. And that's the only way they make these big returns is to have this huge leverage. It would make you crazy if you were already rich.

So they're making smaller and smaller profits on more and more volume, which gives them this big peak leverage risk, which I would not run myself. And that's the only way they make these big returns is to have this huge leverage. It would make you crazy if you were already rich.

He knows a lot about it. He's been there all his life.

He knows a lot about it. He's been there all his life.

Rod Hills somehow knew Saul Price and knew what he was doing. He said, you have to go down and meet him, he said. So I drove down and went through his store and talked with Saul. And, of course, Saul was a very intelligent man. Saul was an ordinary lawyer until he was 39 years of age. Then he went out and formed a government employees discount company or whatever. Was this in the Fedco days?

Rod Hills somehow knew Saul Price and knew what he was doing. He said, you have to go down and meet him, he said. So I drove down and went through his store and talked with Saul. And, of course, Saul was a very intelligent man. Saul was an ordinary lawyer until he was 39 years of age. Then he went out and formed a government employees discount company or whatever. Was this in the Fedco days?

He was no longer with Fedco. He sold Fedco to the Germans.

He was no longer with Fedco. He sold Fedco to the Germans.

Yeah.

Yeah.

Yes, I did. But I just bought my stock in the market.

Yes, I did. But I just bought my stock in the market.

Well, Sanigo asked Warren to become a director of Costco. He was looking for somebody with a financial reputation. As an independent? Yes, and Warren wouldn't do it. He said, well, get Charlie to do it. I want shorter plane rides to director's meetings and so on. So that's how that happened.

Well, Sanigo asked Warren to become a director of Costco. He was looking for somebody with a financial reputation. As an independent? Yes, and Warren wouldn't do it. He said, well, get Charlie to do it. I want shorter plane rides to director's meetings and so on. So that's how that happened.

They tried to get Warren to buy out the French when they left Carrefour. And Warren wouldn't do it. Warren doesn't like retailing.

They tried to get Warren to buy out the French when they left Carrefour. And Warren wouldn't do it. Warren doesn't like retailing.