Charlie Munger

But he doesn't.

He comes into the hive and does this incoherent dance.

And all my life I've been dealing with the human equivalent of that honeybee.

And it's a very important part of human organization to set things up so the noise and the reciprocation and so forth of all these people who have what I call say-something syndrome don't really affect the decisions.

No, of course not. Are the dog tracks and racetracks of the casinos good for America? Of course not. They're just very popular. That's how Warren got his start, though, right? At the racetrack? Well, but Warren never gambled heavily as a patron. Warren wanted the odds in his favor, not somebody else. Right. It's just so simple if you're Warren. You want the house.

No, of course not. Are the dog tracks and racetracks of the casinos good for America? Of course not. They're just very popular. That's how Warren got his start, though, right? At the racetrack? Well, but Warren never gambled heavily as a patron. Warren wanted the odds in his favor, not somebody else. Right. It's just so simple if you're Warren. You want the house.

You want to be the house, not the punter.

You want to be the house, not the punter.

Well, it's organized. They don't really know anything about the companies or anything. They just gamble on going up and down the price. If I were running the world, I would have a tax on short-term gains with no offset for losses on anything. And I would just drive this whole crowd of people out of business.

Well, it's organized. They don't really know anything about the companies or anything. They just gamble on going up and down the price. If I were running the world, I would have a tax on short-term gains with no offset for losses on anything. And I would just drive this whole crowd of people out of business.

Well, of course, Renaissance was the first algorithm. It was so simple. They sifted all this data from the past. And what did they decide? up-up, which were two closing prizes, and down-down were more common than down-up or up-down. Once they realized that's the way it was for various reasons deep in the psychology of man, is that man is a natural trend follower. Gambling short term.

Well, of course, Renaissance was the first algorithm. It was so simple. They sifted all this data from the past. And what did they decide? up-up, which were two closing prizes, and down-down were more common than down-up or up-down. Once they realized that's the way it was for various reasons deep in the psychology of man, is that man is a natural trend follower. Gambling short term.

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.