Charlie Munger

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.

Fees down 50%. And that's happening all over America. They feel had, misled, irritated. They've looked foolish to their own trustees.

Fees down 50%. And that's happening all over America. They feel had, misled, irritated. They've looked foolish to their own trustees.

There'll be somebody who'll find a new thing, but it gets harder and harder. I would argue one of the easiest ones was when they decided a little group around Home Depot, they would copy the Costco model and home improvements. And that was basically a good idea. And think of the money they made doing it. Yeah.

There'll be somebody who'll find a new thing, but it gets harder and harder. I would argue one of the easiest ones was when they decided a little group around Home Depot, they would copy the Costco model and home improvements. And that was basically a good idea. And think of the money they made doing it. Yeah.

Yeah.

Yeah.

Well, there was another one at Costco. Floor and Decor is the current imitator. And it's just this in vinyl, wood imitating vinyl flooring. They're running a Costco model. And they keep adding miscellaneous stuff to it, too.

Well, there was another one at Costco. Floor and Decor is the current imitator. And it's just this in vinyl, wood imitating vinyl flooring. They're running a Costco model. And they keep adding miscellaneous stuff to it, too.