Charlie Munger

Well, they do if they ever get any money. The dollar is very fungible. You can always buy one anywhere.

Well, they do if they ever get any money. The dollar is very fungible. You can always buy one anywhere.

Well, I think it's a very legitimate business if you do it right. If you want to give the right people the power and nurture them, help them. You know a lot about the tricks of the game, so you can help them run their business, yet not interfere with them so much they hate you.

Well, I think it's a very legitimate business if you do it right. If you want to give the right people the power and nurture them, help them. You know a lot about the tricks of the game, so you can help them run their business, yet not interfere with them so much they hate you.

By and large, having bumped into a lot of people in the businesses with venture capital financing, I would say the ordinary rule is that people in the business doing the work, they more or not, they hate the venture capitalists. They don't feel they're their partner trying to help them. They're only taking care of themselves and so on and so on. And they don't like them.

By and large, having bumped into a lot of people in the businesses with venture capital financing, I would say the ordinary rule is that people in the business doing the work, they more or not, they hate the venture capitalists. They don't feel they're their partner trying to help them. They're only taking care of themselves and so on and so on. And they don't like them.

Yeah, well, but that's not true in Berkshire. You see, they know we're not trying to discard them to the highest bid. See, if someone has an old investment bank or offers us 20 times earnings or some lousy business, we don't sell. If it's a problem business we've never been able to fix, we'll sell it. But if it's a halfway decent business, we never sell anything.

Yeah, well, but that's not true in Berkshire. You see, they know we're not trying to discard them to the highest bid. See, if someone has an old investment bank or offers us 20 times earnings or some lousy business, we don't sell. If it's a problem business we've never been able to fix, we'll sell it. But if it's a halfway decent business, we never sell anything.

And that gives us this reputation of staying with things, which helps us.

And that gives us this reputation of staying with things, which helps us.

Well, it's rare, you see. Everybody else has a standard way of doing things. The lawyers have their standard forms. And everybody just has the same standard form. And they get the same standard results, subject to the vicissitudes of investment life, you don't want to make money by screwing your investors. And that's what a lot of venture capitals do.

Well, it's rare, you see. Everybody else has a standard way of doing things. The lawyers have their standard forms. And everybody just has the same standard form. And they get the same standard results, subject to the vicissitudes of investment life, you don't want to make money by screwing your investors. And that's what a lot of venture capitals do.

The world is full of XG, Goldman Sachs partners that formed a private fund. And they manage a billion dollars or something like that. And they charge two points off the top plus this. And that enables them to make very handsome livings themselves. But the endowments are not getting a good return.

The world is full of XG, Goldman Sachs partners that formed a private fund. And they manage a billion dollars or something like that. And they charge two points off the top plus this. And that enables them to make very handsome livings themselves. But the endowments are not getting a good return.

It's just the way it works. And of course, you really shouldn't be in the business of charging extra. You really are going to achieve very unusual results. And of course, it's more easy to pretend that you can get good results than it is to actually get them. And so it attracts the wrong people. People in investment capital turn their mind.

It's just the way it works. And of course, you really shouldn't be in the business of charging extra. You really are going to achieve very unusual results. And of course, it's more easy to pretend that you can get good results than it is to actually get them. And so it attracts the wrong people. People in investment capital turn their mind.

And the people who make the most money out of venture capital are a lot like investment bankers, deciding which hot new area they're going to get in. They're not great investors or great at anything.

And the people who make the most money out of venture capital are a lot like investment bankers, deciding which hot new area they're going to get in. They're not great investors or great at anything.

Well, they're starting to do it. The endowments have started to say to all these people that charge $3.30 or whatever they charge, they said, we'll pay your $3.30, but we're going to put in twice as much money, and then the next half you'll get nothing on it. You're just going to ride Perry Passu on some of your investments. So the fees go down by 50%. That'll take a lot of the fun out of it.

Well, they're starting to do it. The endowments have started to say to all these people that charge $3.30 or whatever they charge, they said, we'll pay your $3.30, but we're going to put in twice as much money, and then the next half you'll get nothing on it. You're just going to ride Perry Passu on some of your investments. So the fees go down by 50%. That'll take a lot of the fun out of it.