Charlie Munger

They make the suppliers wait until they've been paid, and then they're scheduled to pay only after they're scheduled to sell.

They make the suppliers wait until they've been paid, and then they're scheduled to pay only after they're scheduled to sell.

That's correct.

That's correct.

Who knows? Saul kind of liked it. He was kind of a financier. He liked deals. He liked this miscellaneous real estate. Yeah, but it doesn't make sense. You got an enterprise as big as Costco. You don't want to screw around with your parking lot and get other people to clog up your parking lot permanently and stuff that's not going to pay you very much. You don't want them is the answer.

Who knows? Saul kind of liked it. He was kind of a financier. He liked deals. He liked this miscellaneous real estate. Yeah, but it doesn't make sense. You got an enterprise as big as Costco. You don't want to screw around with your parking lot and get other people to clog up your parking lot permanently and stuff that's not going to pay you very much. You don't want them is the answer.

Well, there are lots of them. That little grocery store chain here in Los Angeles, Gelson Brothers.

Well, there are lots of them. That little grocery store chain here in Los Angeles, Gelson Brothers.

Well, you may find it five years after you bought it. These things may work into it or your own understanding may get better. But when you know you have an edge, you should bet heavily. You know you're right. And most people, they don't teach that in business school. It's insane. Of course, you've got to bet heavily on your best bets.

Well, you may find it five years after you bought it. These things may work into it or your own understanding may get better. But when you know you have an edge, you should bet heavily. You know you're right. And most people, they don't teach that in business school. It's insane. Of course, you've got to bet heavily on your best bets.

You work at it. You do a lot of reading and thinking and visiting.

You work at it. You do a lot of reading and thinking and visiting.

There was a lot of low-hanging fruit in the early days of our operation. You don't have any low-hanging fruit that is easy to recognize.

There was a lot of low-hanging fruit in the early days of our operation. You don't have any low-hanging fruit that is easy to recognize.

keep our families safe and take a good job for our investors and so on. We had similar attitudes. Yeah. Did it change over the decades? No. Warren still cares more about the safety of his personal shelters than he cares about anything else. If we used a little bit more leverage throughout, we'd have three times as much now. And it wouldn't have been that much more risk either.

keep our families safe and take a good job for our investors and so on. We had similar attitudes. Yeah. Did it change over the decades? No. Warren still cares more about the safety of his personal shelters than he cares about anything else. If we used a little bit more leverage throughout, we'd have three times as much now. And it wouldn't have been that much more risk either.

And we just never wanted to give them at least a chance of screwing up our basic shelter position.

And we just never wanted to give them at least a chance of screwing up our basic shelter position.

No, I think it would have worked fine. Does Warren think that? Very easy. The situation lends itself to, if you were intelligent, just milking it out.

No, I think it would have worked fine. Does Warren think that? Very easy. The situation lends itself to, if you were intelligent, just milking it out.