LIVE: A Tribute To Charlie Munger | The 28th Motilal Oswal Wealth Creation Study | N18L

investing Colossus he's a Colossus we ought to get that I mean just a read of his biography started as helping his grandfather in his grocery store was a meteorological assistant to the US Army in the second world war a qualified architect trained as a lawyer and then the investment genius is just the icing on the cake so clearly a many splendored man and uh therefore my thanks to moal oswal and to Ram Agarwal every year they do produce a gem of an idea in their wealth creation study but to defer to the investing genius and say that we'll rather learn lessons from him this year uh rather than a panel on their uh work is uh an excellent idea uh an amazing one and thank you for that well as was just announced uh we are the co- moderators but I think that is a delusion that has been sold to Mr dman as far as I'm concerned he is a fellow he is a panelist and I'll be directing as many questions uh to Mr danani as to Mr bachara to Manish bab and RAM Agarwal but you know just a word on the panelists Mr dman I'll defer to you I think you know their manorisms much better than I do so please go ahead thank you L thank you ram for inviting me you know one of munger's Heroes was a guy called Benjamin Franklin and he used to quote he said well done is better than well said and not only spoke well did well but lived well an extraordinary life and Charlie was of course known for his multidisciplinary mind manga's life straggled two centuries and his insights from the study of psychology economics physics biology history and as you said even architecture are astounding when asked the secret of his success he said I'm rational so here to discuss his wi wisdom and life's work I'm joined by a panel devoted to understanding him uh of course because munish joins us all the way from the state somewhere hi munish thank you for joining us so much uh great to be here yeah I'm joined by sanjoy bachara a lot of people call him professor some people call him Guru but I call him up Mumbai and then I'm joined of course by our very own Ram Agarwal whom I'd like to call up batka Buffett batka Buffett so thank you all for joining us uh my position as a py yeah the vice chair chairman CH we'll take care of that um but thank you but before we start uh I just want to see how much all M I got a small Rapid Fire for them so let's see uh how they do pleas goad so I'm going to ask you some questions and you can raise your hands and uh I would assume my fellow panelists and my son here knows all the answers but let's see how good the crowd is on mangar okay in sometime in the 0 Buffett bought manger uh when Buffett bought his first corporate jet Monger uh called him and they named the jet what your choices are Burkshire one please raise your hand those are things was called burshire one okay the indefensible who who call it the indefensible okay a few hands and the third one capitalist tool wellow the correct answer isens indefensible because manger thought that the purchase was indefensible well and to manga's honor he used to travel even in his late '90s by economy with the book correct sanjoy according to Charlie Munger one investment that he still regrets is the choices are a Fanny May raise your hands B Eastman Kodak C Alibaba yeah again I mean this is not a very fluent audience but it's Alibaba actually the last interview said he regretted buying Alibaba the most okay here's one uh Buffett and Munger bought Seas candies in the 1970s for paying $25 million one of the most iconic trades that they did out there and Buffett as Monger have often waxed about how much cash Seas candy is generated how much cash do you think Seas candy has generated over the next 50 years for them is it a 25 million is it B 100 million is it c 2 billion is it d25 billion C he's right of course M he knows everything it's it's I called him a professor for good measure you know so it is of course 2 billion plus that was generated from a single $25 million investment and what Muffet and Munger have taught us and generations of investors is that a business that throws out cash and doesn't require capex is worth his weight in gold and they always give this example of seas candies of how much it does uh mangar was in one afar of his life l a real estate developer yeah he also did Real Estate and uh the key to him according to mangar to generating more money from Real Estate was what a bigger square footages of homes two larger kitchens in the homes or three Lar Landscaping how many of you feel it was the first one bigger square footage would generate more Revenue how many was B bigger kitchens Arjun you're wrong and how about Lush Landscaping he used to say lush Landscaping will give you three times the return of that he had another one on this which is phenomenal because I think we had another interesting thought on this and I'm sure Manish would speak about it at some point you know a few years before he passed he made I think the University of Southern California if I'm not wrong an offer that he would grant them $100 million to make dories correct but there was one condition he said the dories cannot have Windows and so people were stunned they said what kind of guy is this and his logic was very fascinating he said if you don't have Windows people will come out of their rooms to meet each other so there'll be much better social bonding and he learned that from basically the cruise ships you know when when people you know mingle and single out there great uh a company that Munger admired the most all right in his life and I just share a joke with you because it be kind of fun to hear this joke so Buffett and manger are going on a plane somewhere and it's hijacked and uh the hijacker says okay One Last Wish what do you want so manga says well I want to give my presentation on Costco one more time and speak about the virtues of the retail business that Costco does and they asked Buffett what is your last wish so he says shoot me first so Buffett was clearly the most biggest admirer I was going to say apple Coke Washington Post but I give the answer it was Costco there's a famous talk Munger gave u in the 1980s where he projected by 2034 what would be the K's market cap what should be K's market cap he started taking back 150 years and using only the mental models that he was famous for he rejected the market cap of Coke in your opinion what would it be would it be a $2 trillion raise your hands if you think it's $2 trillion B $200 billion C the company would be bankrupt by 2034 come on you got to get one of those answers guys 2 trillion uh too hard to determine okay he's L is absolutely right no wonder she's the economics editor also $2 trillion he actually projected Ed out $2 trillion and he said there were 8 billion people 4 billion servings 8 billion servings a day multiply that make 4 cents of serving it comes to $15 billion profit right sanjoy that gives a multiple of 20 becomes a $2 trillion company okay under Warren Buffett and Charlie Munger Burkshire hatway has roughly returned to shareholders what returns is it a 10 bagger raise your hands if you think it's a 10 bagger a 100 bagger 100 bagger guys hockey sick no th000 bagger 10 10 L I'm disappointed in you 10 bagger for bushire hatway we won't be talking about them it's been a 20,000 bagger or 2 million percentage return for Bookshare during the life in fact someone calculated that if Bookshare stock fell 95% or I think 99% from the prices today they will still beat the S&P that's how lucrative it has been okay final thing in his last days can add to that is one of Ram's favorite them M this is one of Ram's favorite themes and in a sense a lot of Mr manga's life is exemplified and best understood in terms of the power of compounding so I think if you ask people and you just told them the absolute number of times it had multiplied I think be interesting to ask them at what percent it compounded over that period of time from 1974 when he first acquired Burkshire complete control till today give them three choices ask them okay the first answer is 16% the next one is 20.5% and the last one is 26% yeah this is more common everyone seems to know this 20.5 they figured what the answer wasit too precise so it should be correct okay what was Manga this is the last question uh before I turn it over back to L in his last years of his life manga used to enjoy watching a situation comedy a comedy series on television which one did you watch was it the friends was it the crown or Sanjay was a Seinfeld I'm not 100% sure about this but I think it was the crown okay how many people say the crown well I'm glad I got the professor on at least one point it's actually the signf that's what said to Becky quick that he enjoys watching the sign for great L thank you at least we are glad he watched comedies there's something I can say of common with him all right well actually we have people here who have you know Mish pabra and sanjo bachara who have actually met and spoken to him and uh Mr danani and R maximum is Ram okay though M started the lunch idea with Mr Buffett I think the number of times heed who doesn't live in the United States should put a qualification among the people who don't live in the United States the guy who's met him the most is Mr you sorry okay no the question really is to you what was your uh reaction when you first met him and what are the life lessons that you drew from the times you personally met him I think I was very impressed by the fact that he spoke so little I thought that was the Hallmark of true wisdom you know Buffett kept on choing all the time and once in a while he'd ask Charlie to say something Charlie would say nothing to add which I thought was a sign of a guy who was really secure so he never used to sort of use even one unnecessary word in communicating the second thing that I loved about him and in a sense it was an inspiration for me was this desire to try to learn constantly and to improve yourself constantly and to read as he said many people thought he was you know a book with two legs sticking out so I'm I'm nowhere there uh but uh I think that idea is inspirational that you should try to constantly learn and improve yourself every day a we bit even and one of the best ways of doing that is by reading so these are the two things that I took away absolutely I mean I think the lesson that every day when you go to bed you have learned a little more than what it was what you were when you got up in the morning is I think a great lesson something you can remind yourself but the third thing sorry me and you know he was an invest third fourth fifth is no no the third thing which I it really resonates with me personally is he was an investment genius he was an intellectual Colossus apart from his I mean independently I'd say if he hadn't been an investor he would still have been supremely gifted in doing whatever he did but the thing and he said this in one of his quotable quotes I forget the exact quote but he said the one of the best things you can do in your life is to help other people to get to know more and to do better which I thought was truly truly remarkable in fact it reflects the character of the man if there's one thing about Mr manga that people often don't take note of is that he was such an outstanding human being in terms of his character it is truly rare to find people who have such incredible character blunt forri right honest and and giving and giving that's right absolutely money and mind that's right absolutely yeah that's the stunning quality Manish pabra you are in that fortunate position as the last person to have in this I mean many people I know to have actually had lunch with him uh tell us about that day was there something outstanding some anecdote that that still keeps coming to you well the what was my last uh dinner what was I didn't know it would be my last dinner with with Charlie was exactly 1 month uh before he passed away and uh uh we had a we had nice home friendship uh very unlikely I still don't fully understand he wanted to be friends but uh that went on for like more than 14 years and uh in the 14 years you know uh I used to uh play bridge with him quite a bit and probably meet him four five six times a year at his home for dinner and so on and uh I had never really uh imposed on Charlie right so I would just be in uh reactive mode in the sense that uh he would say you know come over for dinner and I'd say okay but I never like asked him you know can we meet or whatever and uh the only time I did that was for that last meeting I felt somehow that uh I wanted to to see him so I reached out and I said you know uh can we meet he said yeah you know so on a Saturday I went to LA and uh it was just me and him so it was just a one-on-one uh wonderful evening and uh you know the the thing is that uh Charlie was uh clearly uh dealing with a number of health issues you know he said you know I've that quote to me was there's a lot wrong with me and uh I I had uh brought him some stuff to read and uh his his assistant actually told me that uh listen don't give him anything to read below 24 uh font size uh so basically he was almost blind uh but never complained you know uh so so actually the stuff I gave him to read I you know 24 font is really large and so uh it was it was printed in a really large font but basically I I I asked you know Charlie you know you lost so many things you know golf went away Bridge went away going to the office went away driving went away so many things went away right so I said what bothers you you know what bothers you about uh the way you are and he really wasn't uh you know not never a complainer right so he only said he said the only thing I wish uh were better were my eyes right my my he had one one eye that he was not blind in and reading was really important to him so even when eaing was almost gone uh not a complainer right and so basically uh the key thing uh what Charlie was to Soldier all right you know so his whole Mantra was to uh to uh to just just keep going uh we uh you know every almost every time I met him at least 20 30 minutes would go talking about Costco you know that was Costco was his uh besides worksh was his love in life and uh all kinds of different things would come up about Costco he would almost always be in a Costco flannel shirt which you can buy for like $10 and uh just uh I I'd say the the biggest lessons uh I learned from Charlie is not so much what he said it's observing him um observing him with the way he's interacting with his kids his grandkids his uh sons and daughter-in-laws and and so on like once a once a week I think every Friday he'd have a zoom call with all his grandkids whoever could make it they would join the call and uh just uh a very warm person a very different from the Persona we used to see in the bathway meetings a very warm caring person okay he's almost coming alive the way you say uh but uh just Ur to me what would be the Costco of our times if you have to pick I mean it seems you I must insist you must remember about company rames chairs Avenue superm Mars in India I mean if you're looking for the Indian equivalent of Costco though I must say there are some important differences between Costco and Avenue supermars which I'm sure again between monish and rames they'd be the better people to speak about it I can nothing to add but you can't escape from this what's your Costco I you know I think that would require a much Superior IQ uh that you know I'm just ask you to think on your feet obviously if you thought through you will have different answers but you you know I think Costco is a unique model and I think uh I remember Monger quoting once and he was actually in love with Amazon too he thought Jeff Bezos did a great job but he actually said in print somewhere that Amazon should feel Costco and not the other way around so that tells you a little bit about how much he love that company Ram you want to try this question yeah and and uh without any confusion it is the Avenue superm Mar I closest to that as a company I'm saying the business model you know yeah in the same sector Mish PAB yeah you know uh I I uh discussed this a bit with uh RK danani and uh I think a lot of the inspiration of Dart uh dmart is really uh very heavily influenced by Walmart and cost I think it's a combination of those two that uh a lot of the model um came from and those are those are both amazing uh amazing businesses and we've seen U you know obviously tremendous execution uh at Dart uh uh and and actually in fact one of the areas which uh where Costco and Walmart differ a lot is in uh paying up for great real estate and uh Costco always wanted to put their stores closer to where uh you know they were affluent population centers and so on and uh Walmart was always looking for the cheapest uh store thinking that people will drive to wherever they need to go to get to them and I think Dart took a lot of that Playbook from Costco uh so uh it's actually very very wonderful to see uh some of the the the spirit of Costco uh in uh in Mumbai and India and doing so well okay well uh actually I thought somebody might even say zato but that discussion for another day uh ramdev you know there are many lessons we've got from or we hear from uh Charlie Monga uh companies with a big moat companies which fools can run what's your best lesson which you have lived I would say two of them one that Buffett's biggest mistake is corrected in fact he changed Buffet he bought the his biggest mistake was buying Baka because he was student of Graham where you needed to buy cheapest possible stock net Nets they call it so that's what once he met uh I think after buying the stock he met Charlie and Charlie changed his mind and he said buy wonderful business at reasonable price rather than uh fair business at a very low price which is a so that change actually brought him to buying uh what is that uh Blue Chip Stamps and then in there they bought uh Seas candy then they bought Coke and everything all the franchises so we learned from them first time I learned that return on Equity is more important the franchise value is very important so the quality culture came because of him because he see initially he Buffett was a brand Equity I mean like we call every we give all the credit to Buffett but Buffett himself has gone and said that it is architected baksha has itself is architected by maner they have executed the plan so that's what is the biggest learning second one is about the compounding he said uh I learned about compounding in 91 but really what he said which meant actually a lot even today is that it's it's actually uh heart and soul of understanding compounding is to First understand and second is what it takes to engender it which is patience yes so no no patience and what the size of effort say like you grow at 25% in 10th year you have to go from 8 to 10 in in 20 years you have to go from say if you have to go to 1,000 you have to go from you have to go from 1,500 to or 1600 to 2,000 so sorry uh you have to go from 800 to uh 800,000 so your effort in that year is 200 times or 2,000 times of students effort so when he has done 20,000 times you imagine it 15 or 20% what is the last few years effort Last Mile effort yeah so what it takes to engender that so business model the size of opportunity the management depth you know you have to really think through what is going to happen not in next one or 2 3 4 years can this business actually compound at 25% or 20% after 20 years 30 years so there are very few business models which offer that opportunity so I mean these two things stuck with me big time what about you Mr dman um L we've all learned you've spoken in a previous uh you know wealth creation study about circle of competence is that a big lesson that you do way you are competent yeah yeah of course it's extremely important according to Buffett not you should know your circle of competence you should know the edge of it you know so famously they didn't bu Microsoft despite being piled with Bill Gates but the thing that uh astonished me when I learned about this about manga is is Illustrated in terms of a story he said he was the chairman of Daily Journal which had like a $10 million balance and for 40 years he read the financial paper Barons and did nothing and then one day he found a stock in there which he thought was a no-brainer so he went and bought the equity and the debt of that company for for Nam sake it was called Teno and he put $10 million into all of it in once we put so waited 20 years before he got that opportunity when he got it he put all in he didn't buy 10,000 shares or 20,000 shares he put all of it in there he took that $10 million it went up to $80 million or something in that neighborhood he sold that stock he gave it to his prod called Liu who turned it to 400 million so here he took $10 million and to $400 million just through waiting for the right investment opportunity that medoc opportunities are not I unfortunately do that you bet on Med opportunities you feel you're missing the bus but as sanjoy said that intellectual confidence in yourself to wait for the right opportunity strike and then back up the truck when to buy it these are almost Immortal lessons well actually if you can develop that point uh uh Mr bachara did not was it Buffett or Manga who said that you should do only 20 trading punches in your life Buffett Buffet I mean that mean only 20 uh buys that means waiting for opportunity one a year or one in two years if you live a very long life is that what that kind of patience I think that's part of the problem in India we're looking for a multibagger every day it's a serious problem with the evolution of Indian Equity markets everyone spends most of their waking hours trying to find a new multibagger I find this absolutely amazing and contradictory it's simply not possible because it belies the faith in compounding no one sets out to buy a multibagger I don't know why people don't get this when you sit down to look at a business the lesson you learn from Charlie is that you focus on the business and how well you understand it and the point Ramesh made I think Mish made is that if you understand it really well you can actually run it the level of your understanding of a business is demonstrated by our ability to actually physically Hands-On run that business you know the ability to buy 100% of a company as opposed to small fractions of it demonstrates that confidence if you couldn't run it you wouldn't buy 100% of it yeah and also to add another point to the story he made $400 million from those two trades that in effect when he died was almost 25% of his net worth so he wor $25 billion and $400 million came from that astonishing St yeah okay and for a guy who was very bullish on America and this is I think a reflection again of our open-mindedness of his open-mindedness and his willing to constantly keep on adding to his Treasure Trove of you know investing acum I think and Mish would be the perfect guy to speak about this he he was greatly I don't know influence is the right word but he was very greatly sort of impressed by Loui oh or leelu I don't know how you pronounce his name he might have met Mish must have met Le I'm sure he or might be he might have also given some money to him absolutely I don't know about that but I'm sure Mish knows them very well but the thing is you know Buffett and manga both said that why do you need to invest outside America you need to you know American companies invest in other countries so why do we need to go and makeing so they I think Lou Lee persuaded them for the first time and it's a reflection reflection of their open-mindedness their willingness to listen their willingness to recognize the huge differences that exist and he embraced that wholeheartedly Fair Point Fair Point well actually Manish you're at a disadvantage because you're not jumping in into the conversation uh it's between us so I invite you to jump into add to any of the points made by Ram Mr dman and Mr bachara but my separate question to you is exactly this I mean inspired by what Mr bachara said he was a China bull seemed to have been an India bear did that come up in your conversations with him did he ever regret it oh yeah it came up uh many many times and uh uh yeah so I'll just quickly share uh three things that I think uh some of your viewers and uh people in the audience might find interesting is uh one of the biggest takeaways I got from uh actually Charlie and to some extent from waren is that uh Charlie never looked back so every time I would meet him I would bring up you know uh you know I said look Charlie you know the body of work and the things you've done the things you did for Burkshire the things you've done for you know huntingt Library all these different things you done and he would just brush it off you know he he wasn't interested in talking about that and what he would always have all his energy focused on was the problem at hand so he never looked back I I learned a lot of lessons that a lot of us you know we may have gone to good schools we have worked at great places we built a business whatever and we look back and say oh you know this is good and that is good Charlie never did that he basically so I I would meet him and one time he was struggling with the succession at Daily Journal he needed to find a CEO and uh the entire evening he was just you know uh talking about that so all his energy uh was focused on the problem at hand um he uh he got wind that there was a very large uh piece of real estate in central California uh near the uh University of California Santa barabara uh called Doan Ranch and dhini ranch is uh about uh 1,800 acres it has about close to 2 miles of ocean front uh Central California it is worth uh in the billions it's a several billion the family wanted to sell it and uh Charlie got wind of it and in about 3 days he got a deal done where he convinced the family to sell Doan Ranch to him for $73 million okay something that was worth probably not north of five or 7 billion or 10 billion couldn't even put a price on it it's just uh amazing real estate and he basically told the family listen you sell it to me for7 3 million one day after I buy it I will donate it to the University of California Santa Barbara it's if you take a tram uh from that uh 1800 acres to the UCSB campus it's a 8 Minute tram ride so all these campuses you know Harvard and MIT and UC Berkeley UCLA Etc they have severe real estate problems uh they are very landlocked they can't grow lot of housing issues um basically what what he did was uh so the family he convinced the family um he gave it to UCSB um the 1800 acres is good for about 4 or 500 years of growth for UCSB and the way he convinced the family was he said look in California the coastal commission and all these bodies you will spend 100 years and they will not let you build anything on it but if you give it if we give it to the university the university will be able to build on it nobody will object to the university building and the family uh got it so this whole deal took place in 3 days right and I met Charlie I said Charlie of all the things you've done this is huge this is massive right yeah brushed it off brushed it off like no interest in talking about it never ever you know most people don't even know about it and because it was for him his perspective was done there's no point talking about it let's move to the next problem and uh so I think that that uh kind of approach of looking forward and not looking back uh was tremendous um I think very early when I when I met him the first time I met him was in 2009 and I think in uh second meeting or something he told me that that um he introduced me to lelu and he said uh I want both of you to promise me something you know we both met him together M he said uh I need both of you to meet uh once a month for lunch no agenda just meet for lunch right so I told Charlie I said Charlie if lelu wants to waste time with me I don't have a problem okay and uh so we used to lelu and I used to meet I mean he he now moved to Seattle and I'm in Austin so monthly lunches have G the by the way said but we still you know at least two three times a year we get together um those uh lunches used to take place at dang which is one of my favorite restaurants in California and it was just wonderful and I I had a lot of discussions with Charlie about lelu so I I asked him I said Charlie look you meet this Chinese guy you know cold you don't know this guy and a few weeks after you meet him you give give him all this money to marriage right so I said where does that come from like I said how how are you able to figure out that he's extraordinary and you know his answer was moish there's nothing to figure out look at the track record you know he said I just looked so when lelu came to the United States you know he was a wanted man in China they wanted to actually imprisonment for life he was one of the leaders of tinan square uh he did three simultaneous degrees at Columbia uh you know undergraduate degree MBA and a law degree finished all three in three years uh nearly at the top of his class came to the US with no English and finished he was on student loans for his entire education and the float on the student loans you know so like for example he to pay you know $20,000 or something intuition they would give him give it to him as the beginning of the year and he used to invest the money before it actually needed to be paid when he finished at Colombia he had more than a million dollars and and uh and of course in addition to that he had you know finished a degree and such so Charlie said it was just a a no-brainer and I had U uh a lot of wonderful U uh insights and learnings uh from Charlie so that's the other the other thing uh the India view if you please always he always went for the no-brainers right so uh Charlie was someone who was very patient and almost every time probably last few years every time I meet him he'd Mo and grown saying oh we can't find anything to buy bur Show's cast is building up this and that and I say you know Charlie you guys always complain about this you know and then in four or five years some big elephant will show up and you guys will take care of it so I know that you keep moaning and groaning and keep looking at things but uh but it'll it'll work out but I think some of these things where you know you don't look back uh never want to take credit for anything I was not bothered about any credit or any accolate to him uh most recent interview I think with Jason zwi Jason zwi told him uh what would you like on your gravestone in eight words or less and you know he said I tried to be useful okay that's five words okay I tried to be useful uh so and he didn't even hesitate for 2 seconds and and then he also asked you know who are you most grateful to in life Charlie who are you most grateful to he said um the first husband of my second wife okay and uh and and he said that I I only needed to be slightly better than that guy and I had the you know uh un unlimited love of this amazing woman because she contrasted me with him so he said I'm a turn really grateful to that guy you know and again you know just uh very very quick great mind and so many times I'd bring up you know we have a foundation induction I have all these folk in the road issues he'd never been to India I'm while I'm mumbling and fumbling what I'm trying to ask he's already answered the question okay and and after he answer the question then I'm thinking why didn't I think of that it's so obvious you know everything would appear obvious after he said it oh absolutely but any word on India any conversations yeah I think I think his his uh concern on India was was the bureaucracy so you know chle used to say you know uh democracy is the worst system except for all the others uh so we we see that contrast between China and India you know China wants to build a th000 m road or th000 m r railroad it'll just be built you know whatever is on the in the path will be just taken out in India we have due process you know we have a lot of special interest groups and all these things and uh those those projects will take forever you we struggle with things in India right and so he recognized that uh at the same time he recognized that India was a place just like China where they were natural entrepreneurs but his he's in balancing between you know what were the positives and what were the negatives he saw some of the negatives with the British bureaucracy that had been left behind and and all of that so his perspective was well he only wants no brainers India was India even I think requires a lot of brain power so when I look at India like even if you look at mial's study there are exceptional businesses in India exceptional managers but they are exceptional investors too and so it's not easy to find a 100 bagger in India that's far from Easy you okay okay okay well the other question that occurred to me uh Mr B did he ever discuss macros or was he all in stocks no no macro at all I don't think I think Buffett echoed this at some point he said the only thing you need to really think about and Mr manga supported this was you need to know the direction of interest rates which is driven by inflation he said but apart from that once in a while you know if I figured that if I know what's going on with interest rates he didn't seem to think that it mattered very much he was really focused on the heart and soul of what he owned I I also want to just make a quick comment for I think our audience and in a sense I think subconsciously I don't know when munish started it but this is how he might have been influenced personally by manga this D Foundation it is truly exceptional and I would urge everyone to take a look at it the kind of work it's doing and its agenda it's very un indan and it's to my mind ironic that an Indian sitting in the US is doing it here so congratulations Manish and I think everyone should take a look at it I'll add to that it's God's work what he's doing he ex they take people from the absolute margins of society and turn them into I and IM am graduates I mean it's exceptional work that I think a a round of applause is called for I hope the message has hit hope there's one more thing it's run exceptionally well there are few businesses which are run as well as the dakna foundation that's very good to hear sir very good to hear uh you know one of the one of the one of the interesting things is that there are two people on the on the stage there L and ramdev who've been to uh the Charles teer Hall that Dak has in uh Bangalore I encourage all of you to to go there I would just say this that if there wasn't a waren Buffett or a Charlie manger there wouldn't be a Duan you know I mean I did not grow up in India with a very strong ethos or any ethos actually for that matter on giving back you know the focus would be take care of your family take care of your you know loved ones and uh that was the end of that you know and maybe a few people around you and uh it was really when I uh studied Warren and Charlie that it uh it dawned on me that there was a um a greater sense of you know purpose that one could attach and and actually both of them uh were very uh useful both of them read uh every D annual report cover to cover uh uh last time I went to see Charlie the last two DNA annual reports were on his table uh so and and uh so many times uh he would ask me a lot of questions about different things about dakna what D were doing and even even Warren would ask me uh questions about that so they um they they had tremendous influence they Contin to have a tremendous influence on D it's been wonderful I I remember that Mish introduced me to so many of their uh staff and he knew their families and how many of them had you know tied it tied it over to Great Heights it was it was pleasure the post interview getting to know dsha and the sub staff was an you know a really satisfying experience glorious experience let me just Dawn my journalist cap for one second before I hand it over to you uh to ask the more difficult questions uh Mr bachara do you think that uh India is in a good spot now you know the way uh uh Mr ramdev presented it do you think know demographic Trends even tax to GDP is increasing year after here uh do you think there's something big that's that we are on or are we over marketing ourselves to ourselves you put it very well that's wonderfully put that last that last phase is a wonderful illustration of how you can put something really tricky in a nice way uh and you've done what a lot of people do to me you've put me in the spot on the spot um I must say this I think you know this is an incredible country it has amazing capabilities across a very wide spectrum of activity entrepreneurial capabilities and a huge bunch of things but I think the the the two and if you look at Charlie and try to ask yourself how would Charlie have looked at India I think that's really the lens you should bring to bear on this I think one of the things Charlie would have done is he wouldn't have been so uncritical about the things that aren't so great we tend to wish away all that we don't like so we have a little bit of this selective retention bias uh as an economist surely you're much better qualified than I am but very few countries which run a combined gross fiscal deficit close to double digits will find that they can sustainably maintain that yeah there is growth on steroids it's not easy to do it and uh so that's one thing that sometimes I worry about I think certainly all that you spoke about the de the demography the but it needs to be savings I mean we're getting an explosion of savings and financialization but I think all of this needs to be harnessed in a way that is productive so the demography doesn't count for very much if you don't focus on Healthcare and education no if if it was left to Charlie manga he would have rather than invest in steel plants invested in education primary schools I think that's where Charlie would have gone in India he'd have focused on primary schools and Primary Health Centers because to really be productive you need to be in good health and well educated it's not enough to say that the 15 to 64 population in India is something fantastic and very different and the number of you know dependents that each person serves is much lower than in China there's a gray effect in Japan that's all true but at the end how do you make it happen he had a wonderful word for this though I don't think he used it in the context of India he he should love this word I heard it the first time when I went there with r it's called the lopala effect so if good things come together multiple good things come together then you have a force multiplier that is just truly truly exceptional it just knocks the hell lot of things and I think the difference is if you look back at America and go back 50 70 100 years I think they did a lot of the building blocks they got the building blocks right and the building blocks led to laapoa effects in the US and I hope it happens in India absolutely okay over to you R thanks monish we have you all the way from Austin I'll ask you this question I'm going to read a monger quote and then I want you to give me the color on it as you see fit and I hope you recognize the quote manger once said he's a manager that all investors CEOs would be CEOs and MBA students should study who was he talking about well I think I think uh would be Jim Sagal uh at Costco Miss this B possibly not quite it was Henry Singleton of tadine who you know he admired so much uh for his thing capital for his Capital allocation his brood rationality just to inform your audience uh Monger has said that Singleton would play Chess at the grandm level blindfolded he was that good a capital he would he started the concept of buying back shares elsewhere um if you know the story would you at towards his deathbed Singleton wanted to sell tadine to Burkshire hatway and the transaction could not be consumated why is that well so Singleton I mean he was he was amazing he from 1965 to 1970 he bought 170 companies uh typically about 10 times earnings for these companies but he stock his stock was trading at 40 to 70 times trailing earnings and so you know he was using expensive paper to buy good assets then from uh 70 uh 74 72 to 84 bought back 90% of shares at single- digit multiples right and then at the end of that 80 84 period when he had bought back 90% Charlie knew him he went to Charlie and said okay now you know T is a good company they also had an insurance business and he said you know these assets are wonderful Charlie and you know bsh would be a great home and he wanted to sell it to and Berkshire was very interested in buying it but Henry wanted uh burshire stock I mean he was a very smart guy you know this guy was uh you know off the charts and uh Warren and charali were very interested in doing the deal but they said we want to pay cash and so Henry didn't want to do it that way because you know then there's a tax implication everything and of course in 84 Burk stock was $400 a share which is now $550,000 you know so uh it would have been a a huge home run so that that deal never took place but just tells you the amazing mind of Henry but M just to add to that if you can Booker uh and Warren and Charlie did sell uh Booker stock at for one particular transaction uh do you remember which it was and how did it work out for them correct Dexter shoes Dexter shoes how did that work out for them Warren called it his biggest mistake you know other than buying book way itself so they gave away 2% uh 2% of the shares of Burkshire hathway to buy Dexter shoes Dexter shoes eventually was a zero basically for all practical purposes that investment went to nothing 2% is uh around 15 billion today uh and Counting you know I mean it's not over yet and uh well I mean I think they the the big lesson they learned from that was and this is this is the great thing about both these guys is uh the the important thing was that they didn't really dwell on it so much uh they learned the lessons and they moved on and the big lesson they learned is you know we're not going to do uh these stock deals you know if we pay cash doesn't works that's one thing but um I remember just to give you a little lesson about mistakes is that um I think it was like 201 14 or 15 I had had investment I had made uh go to zero so I made invested about $70 million in this U company in in the US and it uh eventually went bankrupt went went to zero and I had written to my investors explaining you know what happened Etc and uh I I remember I was about to board a flight from New York to LA and I get a phone call from uh Charlie the assistant and she said Mr manger would like to talk to you very rare I mean I think there must be two times in my life that Charlie actually wanted to talk to me on the phone so instead of boarding I said okay let the flight go you know I sat down I said yeah sure I'll I'll I'll talk to Charlie and Charlie basically called was calling me and saying look moish I read your letter to Partners and uh you have to be careful he said we want to learn from mistakes but we don't want to learn too much and we don't want to brood and we need to move on so he said the tone in your letter bothered me because I think you're beating yourself up too much about it so he said we all make mistakes it was like you know it was like a grandfather calling me you know grandfather calling you at at a point in time and you're like not really happy put his arms around you and said look we all make mistakes um I understand that you need to learn don't learn too much the exact words were you need to learn don't learn too much and move on go forward right and uh that was a tremendous lesson and he didn't need to make that call you know I mean I'm nobody to him but uh that was the kind of person Charlie was yeah great story uh Mish thank you great Insight now I got one question for all the three panelists I'm going to put you all on the spot let's assume you're probably all worth more than that but let's say you are retiring and you're worth a billion dollars each okay and God told you that you have to give that billion dollars to be managed by a fund manager you can't manage it it has to be managed by a fund manager and he gave you five choices who would you pick a Charlie manger B leelu three rakes junjun Wala fourth Geor sorus fifth John KES Mish you go first I'll go with Charlie okay uh sanj none of the five you you have to pick one for argument sake this is a fun thing close I'm not going to actually take a billion dollars from you I tell you who I would have gone with okay mik I'll tell you who I would have gone with and then I'll tell you out of the five okay out of the five John manard KES John manard KES okay and I would have gone with set clamman set claman from the yes great ramdev I'll repeat the names Charlie Monger Leu rakes junjun Wala Geor sorus John KES of course raka okay it's compounded at 50% dollar terms so you look at his compounding of course it's is not for 65 years I think real in compounding thing is that you go in for for 50 60 70 years so I mean with a liver also you can turn the whole earth so so I mean for this old people I'm me this Charlie and Buffett it's 20% for 65 years that's the differential not the rate Rakesh is all about the rates it's 40% 35% so I'll give money to him I don't have 65 years I have whatever great great answer I'm um my last question to you Mish um um this is a again A M quote I wanted to see if you can guess who he talked about and why did he like that person so much he says of course I admire him I have a bust of him in my house well you know leak on you yes Bingo he did why did my leak on you so much he's a politician from Singapore of course the ex- prime minister of Singapore well I mean I think I think Charlie was Charlie and Warren are both about track record right I mean you just look at what Singapore was 1950 GDP of India and GDP per capita GDP of India GDP of Singapore is the same and look at it today I mean what's the difference I mean there night and day difference in uh in what's happened I mean and you know it was a swamp a swamp with bad weather and uh not Advantage almost no no natural resources and uh you know from all of that Rose an incredible civiliz ation and and he was able to uh bind together disperate cultures into a very cohesive Group which has no conflict with each other and uh just incredible it's all the different things that leanu got done in Singapore is basically a miracle you know I mean I think that uh that and and if you think about China you know there is no China if there's no leak on you you know dja ping basically took the sing model uh set up the economic zones which CAU China going in on a on a capitalist path and then eventually the entire country became an economic zone and so basically the the spectacular rise of China that we saw does not happen if you don't have a leak on you as the beacon and if you think about a communist country embracing capitalism I mean that's the most unlikely thing that could ever happen you know so it's just amazing amazing what he was able to accomplish yeah perfect answer thank you again Mish Ram let me ask you um Munger always said and Buffett always says that what they value the highest is temperament you don't necess need a high IQ but you need good temperament what kind of characteristics are important for great investors what did manga say and what do you say I think having patience I mean in temperament I would understand that the kind of compounding the kind of undervaluation because they're always looking for what he said no-brainer now no-brainer doesn't come at least in Indian market it's not spread across but our dear friend alok he buys only no-brainers you know so there are Nob brainers so you have you need to have that temperament to keep looking for no-brainers and then when it comes as you say back up the truck and buy it so I think in and then after buying as I say but not do but not do okay but I think the real thing is that having the patience that lot of people I meet uh particularly now that uh everybody wants to earn money very quickly they they don't realize even if they get one stock right it is not going to turn their entire portfolio which is what they should bother about so the portfolio returns are very different from a stock return so they should focus on uh at what rate their own portfolios are growing at 15% 17% 18% that's the number I mean if indexes done about 12 133% if your entire portfolio has done about 17% youve done a wonderful job so what is the great thing about Rakesh is that his portfolio itself has grown at in I don't know what number but it must be closer to 25 27% for uh and after he's gone probably it is doing even better yeah probably amazingly true and also that he didn't believe necessary in diversification he ran a pretty concentr portfolio first time I met him in sometime in 88 8 89 I met him I mean I was stunned I mean we had tons of shares of all kinds of companies which also we didn't know what that does and he had a piece of paper here you know he used to keep it here all his positions will be written here speculative as well as investing and the sizes will be so massive I said this guy is coming from different planet alog together so it he he was different in terms of focus having few ideas betting big uh I like I I actually sold Titan in 20034 for one of the institutions and we we got tired of selling Titan at about 100 bucks or something then it went down to as low as 30 rupees and then he started buying then he started buying he said what the junk is buying and see what is what he's bought yeah it's been actually amazing but Ram you've done of course despite what all that what you say you've done extraordinary well for yourself the market capitalization is great you know manger made this quotation he says it's not staying Rich that's different difficult it's staying sane I didn't get it it's not staying Rich that is difficult I mean people get rich and you are obvious it is staying sane saying mentally together that's difficult would you do you experience that I mean is it does wealth play tricks with your head are you less likely to listen to people are you more likely to dismiss ideas so are you saying that I'm am I feeling Rich no no you he has decided I know you are rich I don't I know decided you are rich it's easy to be rich it's also factually true he is Rich I know that's true but I'm saying I'm just trying to get your question yeah my question is uh Monger said getting rich was easy staying sane was difficult s s n e [Laughter] s that's why we have lot of friends here you know and they keep us kind of s yeah every day morning we get good lesson and uh so they keep us they are the huge anchors to keep us uh grounded can I add one thing you know you were making this point about getting wealthy and Mak you know Charlie said one other one very interesting thing about this he said I want to get rich but it's not about the money it's about being independent independent so Charlie wasn't trying to get rich because he wanted the money he said I don't want to buy Ferraris or Lamborghinis or and he stayed in the same house for 70 years that's right I think this is I think again something that a lot of people need to think very seriously about why do we want the money what is the sense of purpose here but but let me ask you this uh what is Buffett roughly worth today roughly meaning after his donations I mean what is the net worth today donation is gone so what is his worth today roughly I'm saying you know I would think somewhere close to 100 billion yeah 9 to 10000 billion something there and Monga when he died was worth 1.8 sorry 2.6 26 million 2.6 million how come there such a disparity between the chairman and vice chairman one is the number of shares they own I'm happy to say that makes a big difference manger being the architect could have bought the shares I mean actually shareholding was in large part when blue stamps got merged into Baka that was the single largest chunk of his Baka Holdings and I don't know most people wouldn't say what I'm going to say now but I certainly will to his credit he didn't hanker after buying more Burkshire shares even though he probably knew just as well as Buffett how brilliant the future was that really you if you uh if you go back back uh if you go back about uh maybe 25 30 years uh the shareholding Munger had in bushire haway was approximately 2% of the company correct um about about 15 billion so when his uh when his wife passed away uh you know she had an accident she she passed away uh she had told Charlie that you know my half I really would like it to go to my eight kids and um and so uh at that time when when she passed away uh the value of uh Workshop was about uh about 100 billion and so his shareholding was about 2 billion and I remember his assistant told me she gets this scribbled note from Charlie saying um you know transfer so many shares of Burkshire to these eight accounts you know for the eight kids okay and and you know uh she was she was actually nervous she said you know monish this is like a billion dollars okay and Mr manga didn't even talk to me he just like wrote me this note and said just take care of it and I'm like concerned that all the you know the share should go in the right place and this and that and uh so a billion and uh the the funny thing is his daughter was telling me there was one year in the US tax code just coincidentally there was one year where there was no straight tax there was no inheritance tax and manga's wife happened to pass away that year by just by accident in fact uh in they used to call it throw the throw Grandma off the train year you know throw Grandma of the train here to uh to avoid attack so anyway it just so happened that that was the year that his wife passed away and so the billion basically got passed to the eight kids it's 125 million each and they have done you know amazing things with that money and of course that uh 125 million is about three or four times that today uh actually no I'm sorry it's about almost seven or eight times that so uh so that's kind of how it went and then the second half uh which was the other billion uh that he had uh he just focused on giving that away and so basically he had been continuously uh for the last probably 15 years or so um you know pushing that money out with things like the dhini ranch and uh different gifsy made different universities and and whatever and Charlie was very quiet uh you know both Warren and Charlie they don't they don't talk about it but in this in the 1960s they were very um uh strong um advocates for the uh pro-abortion movement uh in the United States uh supported it very heavily when it was illegal and uh Charlie worked very hard uh from a legal point of view for Roi Wade uh to get passed and you know we never hear about it they just these guys are not guys who never talk about that and uh so that's kind of a little bit of a history of kind of how the uh the money went and uh yeah and you know when Charlie when you talked about the independence Charlie used to joke you know you know I my whole point of doing all this was to get independence and then he said you know I overshot a bit you know a bit I don't overshoot I got just two questions I want to get sjo to answer sanjoy first I want to talk a little bit about mental models that manga used and which ones do you find particularly relevant and the second question I'll just tell you the question right away You're a professor at least we call you all a professor right so you go to business school they teach you low risk low reward high risk High reward manga didn't neily believe that did he not at all he said just the reverse of it yes so talk to us about it I think the interesting thing about the ltis work of mental models was become famous uh throughout investing through all it's basically about saying that you got to look at problems holistically you can't look at a problem using just one framework or one he he didn't say this but he used to love this phrase to a man with a hammer everything looks like a nail and that's really the essence of the ltis work of mental models and he said you need to know you know psychology you need to know economics you need to know whatever probability Theory statistics and so on I don't want to get into all the different disciplines but what I want to say and this is one of his great contributions it is what I would say reasoning by analogy that's what mja was was really brilliant that he would know the he loved history by the way and he could tell you things that had happened 100 years ago 80 years ago and he would use all the things that he had learned or knew about what had happened in a particular circumstance 50 70 years and then when he saw a similar thing happening right now he wouldn't give the same answer he'd say this is what happened and then what is the current context what can I take from there and then what has changed and you need this ltis work of mental models to do both these things to know do you use it too do you use these mental models have you trained yourself if I had you know his brain that' be different you can see my no no seriously you try to use it in your investment thesis I in the more serious note yeah I think certainly the simple idea that you use probability to judge upside down downside and you do it you know as you don't come for elegant refined answers to the second decimal but you certainly pay a lot of attention to not losing money I think that's something that you know yeah don't lose money one and two rule one is remember don't lose money rule two is and basically it's about figuring out the odds and you want to constantly it's not just about investing it's about life you want to have the odds broadly in your favor you don't want to do things that work against you he said this other thing Peter Bevin I think wrote a book on this he said if you tell me where I'm going to die I won't go there this is about the odds figuring out the odds of surviving how do you survive and I think the ones that I really love but you know not I haven't got into it in as much depth as he certainly did the ones I he was a great fan of a guy called Bob chalini yes of course psychology yeah social P proof and persuasion and so on but the ones I love and which I took on from reading his work one is psychology different forms of psychology and the other I would say is sociology how do groups of large groups of people behave and what drives their behavior why does why do they behave in the way way that they behave and that is the essence once you understand that of remaining rational and also incentives what is the incentives for that the biggest thing that he said every one of us is driven by incentives incentives actually rule the world if you change the incentives you'll have different outcomes may I snatch the initiative then or I snatch the mic actually well U Mr bachara I wanted to since you spoke about analogy it occurred to me a lot of people compare the current period to the 2004 period or globally they compare the current period to the 1970s where you know there were high interest rates and stack flation what is what is what is a comparison according to you the the GL wish I was smart enough to answer that L I don't think I have the depth in terms of understanding macroeconomics to really answer that so I don't want to sort of give an answer to that okay but I think the things that are different significantly today certainly from the early 2000 part is that we are much much better positioned in terms of being much less inward looking in terms of being I wouldn't say a perfectly open economy but a significantly more open economy and also I think the one thing that has changed now and is visible actually in some areas is that we are globally competitive in a few areas and that's a hell of an advantage to have you know which we didn't have then and IT services then was actually labor arbitr you know we love to get carried away with this thing that we turn out these wonderful IT services company they're not it at all you know you can't compare uh let us say a company a Microsoft to an infosis it just doesn't bear comparison no products forget products I think it's the whole level of work that they do to I mean if you visited the campuses of Google or Microsoft it's a it's a different world they don't inhabit the same Planet so now I think for the first time we're beginning to have companies that actually are competitive globally okay and finally I wanted to end with the product uh that we have the idea that uh you know ramdev's team has put forth in terms of uh economic profit uh I wanted uh your view on you know how would you relate it to even what we learned from M manga in terms of I think intelligent Capital usage fundamentally that's what ramdev is driving at that you know use Capital well and those who have used it badly should not be compared with those who have used it well so uh any thoughts on I mean obviously return Capital employed is one of the most important metrics in the free cash flow when I came in the ' 80s to India l a lot of companies would come out with right issues and the so qips and the stock would go up and it would astonish me because they're not using Capital they're wanting more Capital so we tried to look for businesses that throw out cash throw out dividends as opposed to ding Equity they're very few and far between but when you find them that's when you want to back up the truck Mr B same question to you he uses the word hockey stick performance help us identify I mean what what what would be the T things you would use to identify a hockey stick performer I would assume Capital allocation would be the it's the pivot around which hockey stick performance works if you had to single out one they spoke about Henry Singleton in detail you know tadine if you contrast the same period there's a company called link Tempco in the US LTV it used to be called LTV in the United States and at that time conglomerates used to be very very popular in the United States in the late 60s early I don't think there's a person in this room who knows about the existence of Link Tempco V they were larger than teline by the way I should point out that LTV was larger than teline and they went down the shoot so one of the things I think the pivot around which this hockey stick return works is capital capital allocation I think there are two three other things that you know generating return on Capital employed is also I think the size of the opportunity that you confront if you if you don't fish in a big pond it's difficult to continue to maintain an impressive rate of return on Capital employed so if you're trying to buy hockey stick return I think the first thing you should ask yourself is is this business in a place where it can continue to use that capital of the for a long long period of time compound longevity as uh you know ramdev usually says you have to look for the can I use your permission to ask Mish a question which I think is fascinating in the current context so Mish you know Mr manga had a very interesting take on artificial intelligence he said I prefer natural intelligence when he was asked many years ago four five years ago he said we don't go for the artificial types we focus on the natural intelligence but this was said I think 5 7 10 years ago I forget exactly when but more recently when you happen to meet him and given you know all the developments that are taking place in the United States uh especially in the last I would say 2 years what were Mr manga's thoughts on how AI would shape business and more broadly Society yeah so actually every every Tuesday Morning uh he used to have breakfast uh he used to be at the club but later at his home with uh a few Venture capist you know was a kind of cross-section very different group uh than the one he would uh normally you know interact but obviously he's he's not investing in that space uh and and I met some of these folks that he used to uh used to meet for breakfast and I think he was always curious about uh you know kind of what was going on he obviously had a lot of respect for seoa and what seoa cap had done but I think Charlie was uh you know he was one of the guys was really good at understanding the boundaries you know of of uh of where his competence began and ended and so he never really um professed to know uh that how this whole Space would would turn out and and you know how to play it and and all of that I mean he he recognized that there would be change there might be a lot of change but you know he wasn't uh uh one one that would be um able to handicap it right and so just kind of uh Sid steep just a a side note just a couple of things that you know one time I had a discussion with him I told him Charlie you know if he fast forward 100 years or 200 years at bushire hathway uh one thing I know that will be around will be the railroad you know because the railroad has the right away and uh that's that's very valuable I said I I cannot say that about Apple and whole bunch of other things that are in the portfolio but the railroad is there for sure and so there for you know Burkshire is there right because the railroad is there he said well we also have a pretty decent power business you know and he said you know we with the the humans with electricity and all that that'll also be there right so he he actually had thought about these things in terms of uh you know the and both Warren and Charlie uh uh and then he also told me that he expected insurance and this was one area that he and Warren disagreed on he expected Insurance in the very long run for Burkshire to be a very small part of the business and and uh Warren um always expected it would be a huge part of workshire and they actually uh digress I think one of the things was that you know you look at uh a Jan's operation I think that in a post Ajit World they will put it into runoff it'll go into uh basically it will U they because they don't have a I'm not aware of someone who can run that operation other G just just to give you an example this year uh Burkshire hathway after many years wrote uh hurricane reinsurance uh you know they they were out of the market for many years and uh they they wrote uh 15 billion of Maximum exposure so just to give you an example basically when they write these Supercat policy and I had a discussion so uh if they write 15 billion of exposure and some big you know hurricane hits or number of Hurricane hits uh approxim L 4 to 5% of the total insured loss would come to Burkshire which means that for the 15 billion to hit the insured losses would need to be in the range of over 300 billion um for work should be paying out the 15 billion uh Ajit collected um somewhere between like 4 to 5 billion in premium uh and so you know basically in like March of 23 uh the insurers paid you know 4 five billion to Burkshire and those policies expired at the end of November you know that's when the hurricane season end and basically we had nothing you know we basically had about probably the claims were less than few 200 million for burshire and uh so Charlie was so I was telling Charlie last time I met I said Charlie that's like um 4 5 billion just straight on the workshop balance sheet just you know he said yeah and he said A's done that about five times you know so basically uh basically if you think about you know like Buffett used to joke that you know uh my parents would wouldn't allow me to become a bookie so I you know became I I you know created the insurance business so uh the the whole reinsurance business way Ajit has built it and uh the opportunistic way they've run it it's really really spectacular and the uh when they step in like they stepped in in 23 uh there was a lot of uh trepidation that other reinsurers had okay climate change this and that I think the way they looked at it is that that yes the risks were elevated but you're getting paid uh take the risk a huge amount y yeah and and Ajit was saying that they he had written about 12 billion of exposure and he called Warren I think Warren was playing bridge at the time he said uh Warren I can take it to 15 the people still offering insurance and Warren just yeah yeah yeah take it all and Ajit was joking that Warren didn't even listen to the economics you know he just knew that it was going to be a great deal with Ajit running it so um anyway so that's kind of how they thought about the anti fragility of of Burkshire you know um Mard mentioned to me that you know company like apple for example when we look at it this very long-term lens he says with the BuyBacks and all that tangible assets almost don't exist that apple right so if something goes wrong we don't really have a backup you know but that's it's very different with the railroad and very different with the power business and so so just uh insight and kind of how they thought about it fair point I I think uh we have overh short our time by a significant measure so thank you very much Manish pabra Mr bachara Ramesh daani and thank you very much RDI for hosting such a you know such an absorbing conversation uh it's a Pity that some one whom all the greats would turn to for answers like the question on artificial intelligence we have one mind less that's a huge regret and I think you all will feel that let me say that about that quote of mind there is a very good quote by Henry Adams the historian he says a great teacher affects eternity because his influence never stops and I'm very sure that manga's influence will last for many many generations and there are many teachers here who have who will walk in his footsteps so thank you very much SAA bachara ra he he he lived just few days short of 100 years but he'll be remembered for many centuries hundreds thank you L thank you thank you very much thank you thank you everybody thanks Manish most of all thank you thank you so much I think all of us know a lot read heard about Buffett but I think after this panel we know a lot more about Charlie manga and a lot of us will go back and start reading more about mangar uh going forward so thank you once again for this exciting panel session I think a special thanks to monish PAB because we didn't realize it was about 3:30 a.m. there so so I think thank him uh a lot uh thank you L for moderating this Mr danani Rami Mr bachara thank you so much Ru maybe I'll invite you to give a token of appreciation to the speakers [Music] we you missed the money thank you everyone for being here and we have dinner served on the ground floor thank you once again for coming and gracing the [Music] occasion

Channel: CNBC-TV18

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Keywords: charlie munger, charlie munger interview, charlie munger speech, charlie munger daily journal, charlie munger tribute, charlie munger dead, charlie munger investing, charlie munger advice, charlie munger wisdom, charlie munger portfolio, charlie munger berkshire hathaway, charlie munger cnbc, charlie munger talk, charlie munger last interview, charlie munger best interview, charlie munger famous speech, munger charlie, charlie munger quotes, charlie munger news, cnbc tv18

Id: DdU8lrZ7ook

Length: 83min 45sec (5025 seconds)

Published: Fri Dec 15 2023