--- title: "15 Accounting Quotes By Charlie Munger" description: "15 Accounting quotes by Charlie Munger. Plus more from Charlie Munger and more Accounting sayings from other authors." image: "https://sms4smile.com/quotes/i/3f5/charlie-munger-458_accounting_to-say-accounting-for-derivatives-is-ame_1055968.jpg" --- > [To say accounting for derivatives is Americais a sewer is an insult to sewage.](https://sms4smile.com/quotes/charlie-munger/to-say-accounting-for-derivatives-is-americais-a-sewer-is-an-insult/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) [Image](https://sms4smile.com/quotes/i/3f5/charlie-munger-458_accounting_to-say-accounting-for-derivatives-is-ame_1055968.jpg) > [I would argue that a majority of the horrors we face would not have happened if the accounting profession developed and enforced…](https://sms4smile.com/quotes/charlie-munger/i-would-argue-that-a-majority-of-the-horrors-we-face-would-not-have/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) [Image](https://sms4smile.com/quotes/i/132/charlie-munger-458_accounting_i-would-argue-that-a-majority-of-the-hor_2487152.jpg) > [Proper accounting is like engineering. You need a margin of safety. Thank God we don't design bridges and airplanes the way we…](https://sms4smile.com/quotes/charlie-munger/proper-accounting-is-like-engineering-you-need-a-margin-of-safety/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) [Image](https://sms4smile.com/quotes/i/c5f/charlie-munger-458_accounting_proper-accounting-is-like-engineering-yo_2058110.jpg) > [ Anyone with an engineering frame of mind will look at \[accounting standards\] and want to throw up. ](https://sms4smile.com/quotes/charlie-munger/anyone-with-an-engineering-frame-of-mind-will-look-at-accounting/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) [Image](https://sms4smile.com/quotes/i/2ad/charlie-munger-458_accounting_anyone-with-an-engineering-frame-of-mind_1070052.jpg) > [Derivative trading with mark-to-market accounting degenerates into mark-to-model. Two firms make a big derivative trade and the accountants on both sides show…](https://sms4smile.com/quotes/charlie-munger/derivative-trading-with-mark-to-market-accounting-degenerates-into/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) [Image](https://sms4smile.com/quotes/i/4f1/charlie-munger-458_accountants_derivative-trading-with-mark-to-market-a_1769653.jpg) > [The stupid and dishonest accountants allowed the genie of totally inappropriate accounting to descend on derivatives books. And once this has happened…](https://sms4smile.com/quotes/charlie-munger/the-stupid-and-dishonest-accountants-allowed-the-genie-of-totally/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) [Image](https://sms4smile.com/quotes/i/6d4/charlie-munger-458_accountants_the-stupid-and-dishonest-accountants-all_1736359.jpg) > [The SEC does way more good than harm - the last thing I would do is get rid of the SEC...if accounting…](https://sms4smile.com/quotes/charlie-munger/the-sec-does-way-more-good-than-harm-the-last-thing-i-would-do-is-get/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) [Image](https://sms4smile.com/quotes/i/9e5/charlie-munger-458_accounting_the-sec-does-way-more-good-than-harm-the_772464.jpg) > [Accounting is a big subject and there are huge forces in play. The entire momentum of existing thinking and existing custom is…](https://sms4smile.com/quotes/charlie-munger/accounting-is-a-big-subject-and-there-are-huge-forces-in-play-the/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) [Image](https://sms4smile.com/quotes/i/1af/charlie-munger-458_accounting_accounting-is-a-big-subject-and-there-ar_1965349.jpg) > [ Accounting incomes were reduced by discrepancy \[ but\] "the net amount paid by lawyers for lawyerly discrepancy is close to zippo. In… ](https://sms4smile.com/quotes/charlie-munger/accounting-incomes-were-reduced-by-discrepancy-but-the-net-amount/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) [Image](https://sms4smile.com/quotes/i/614/charlie-munger-458_accounting_accounting-incomes-were-reduced-by-discr_322437.jpg) > [In engineering, people have a big margin of safety. But in the financial world, people don't give a damn about safety. They…](https://sms4smile.com/quotes/charlie-munger/in-engineering-people-have-a-big-margin-of-safety-but-in-the/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) [Image](https://sms4smile.com/quotes/i/e8a/charlie-munger-458_accounting_in-engineering-people-have-a-big-margin_1891460.jpg) > [I also want to raise the possibility that there are, in the very long term, "virtue effects" in economics- for instance that…](https://sms4smile.com/quotes/charlie-munger/i-also-want-to-raise-the-possibility-that-there-are-in-the-very-long/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) [Image](https://sms4smile.com/quotes/i/79f/charlie-munger-458_accounting_i-also-want-to-raise-the-possibility-tha_2993526.jpg) > [You have to know accounting. It's the language of practical business life. It was a very useful thing to deliver to civilization.…](https://sms4smile.com/quotes/charlie-munger/you-have-to-know-accounting-it-s-the-language-of-practical-business/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) [Image](https://sms4smile.com/quotes/i/bff/charlie-munger-458_accountants_you-have-to-know-accounting-it-s-the-lan_3093259.jpg) > [Creative accounting is an absolute curse to a civilization. One could argue that double-entry bookkeeping was one of history's great advances. Using…](https://sms4smile.com/quotes/charlie-munger/creative-accounting-is-an-absolute-curse-to-a-civilization-one-could/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) [Image](https://sms4smile.com/quotes/i/f6f/charlie-munger-458_absolutes_creative-accounting-is-an-absolute-curse_2224721.jpg) > [ Everyone caved, adopted loose \[accounting\] standards, and created exotic derivatives linked to theoretical models. As a result, all kinds of earnings, blessed… ](https://sms4smile.com/quotes/charlie-munger/everyone-caved-adopted-loose-accounting-standards-and-created-exotic/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) [Image](https://sms4smile.com/quotes/i/3d3/charlie-munger-458_accountants_everyone-caved-adopted-loose-accounting_1383135.jpg) > [I talked to one accountant, a very nice fellow who I would have been glad to have his family marry into mine.…](https://sms4smile.com/quotes/charlie-munger/i-talked-to-one-accountant-a-very-nice-fellow-who-i-would-have-been/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) [Image](https://sms4smile.com/quotes/i/b14/charlie-munger-458_accountants_i-talked-to-one-accountant-a-very-nice-f_2980092.jpg) ## Other authors on Accounting ## More by Charlie Munger > [Almost all good businesses engage in 'pain today, gain tomorrow' activities.](https://sms4smile.com/quotes/charlie-munger/almost-all-good-businesses-engage-in-pain-today-gain-tomorrow/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [If you want good behavior, don't pay on a commission basis. Our judges aren't paid so much a case. We keep them pretty well…](https://sms4smile.com/quotes/charlie-munger/if-you-want-good-behavior-don-t-pay-on-a-commission-basis-our-judges/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [Acquire worldly wisdom and adjust your behavior accordingly. If your new behavior gives you a little temporary unpopularity with your peer group then to…](https://sms4smile.com/quotes/charlie-munger/acquire-worldly-wisdom-and-adjust-your-behavior-accordingly-if-your/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [I think time and time again, in reality, psychological notions and economic notions interplay, and the man who doesn't understand both is a damned…](https://sms4smile.com/quotes/charlie-munger/i-think-time-and-time-again-in-reality-psychological-notions-and/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [I have what I call an iron prescription that helps me keep sane when I naturally drift toward preferring one ideology over another and…](https://sms4smile.com/quotes/charlie-munger/i-have-what-i-call-an-iron-prescription-that-helps-me-keep-sane-when/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [The tax code gives you an enormous advantage if you can find some things you can just sit with.](https://sms4smile.com/quotes/charlie-munger/the-tax-code-gives-you-an-enormous-advantage-if-you-can-find-some/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [The great lesson in microeconomics is to discriminate between when technology is going to help you and when it's going to kill you. And…](https://sms4smile.com/quotes/charlie-munger/the-great-lesson-in-microeconomics-is-to-discriminate-between-when/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [Some years ago one oil company bought a fertilizer company, and every other major oil company practically ran out and bought a fertilizer company.…](https://sms4smile.com/quotes/charlie-munger/some-years-ago-one-oil-company-bought-a-fertilizer-company-and-every/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [ They \[Mc Donalds\] take people and give them a first job, which enables them to get a second job. They do a very good… ](https://sms4smile.com/quotes/charlie-munger/they-mc-donalds-take-people-and-give-them-a-first-job-which-enables/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [What good is envy? It’s the one sin you can’t have any fun at.](https://sms4smile.com/quotes/charlie-munger/what-good-is-envy-it-s-the-one-sin-you-can-t-have-any-fun-at/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [We believe that almost all really good investment records will involve relatively little diversification. The basic idea that it was hard to find good…](https://sms4smile.com/quotes/charlie-munger/we-believe-that-almost-all-really-good-investment-records-will/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [It is way less certain to be a wonderful business in the future. The threat is alternative mediums of information. Every newspaper is scrambling…](https://sms4smile.com/quotes/charlie-munger/it-is-way-less-certain-to-be-a-wonderful-business-in-the-future-the/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [In the corporate world, if you have analysts, due diligence, and no horse sense, you've just described hell.](https://sms4smile.com/quotes/charlie-munger/in-the-corporate-world-if-you-have-analysts-due-diligence-and-no/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [We have to have a special insight, or we'll put it in the 'too tough' basket. All of you have to look for a…](https://sms4smile.com/quotes/charlie-munger/we-have-to-have-a-special-insight-or-we-ll-put-it-in-the-too-tough/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [I've heard that one-half of the students at elite schools want to go into private equity or hedge funds. They want to keep up…](https://sms4smile.com/quotes/charlie-munger/i-ve-heard-that-one-half-of-the-students-at-elite-schools-want-to-go/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "ItemList", "@id": "https://sms4smile.com/quotes/about/accounting/charlie-munger/#itemlist", "name": "15 Accounting Quotes By Charlie Munger", "numberOfItems": 15, "itemListElement": [ { "@type": "ListItem", "position": 1, "item": { "@type": "Quotation", "text": "To say accounting for derivatives is Americais a sewer is an insult to sewage.", "creator": { "@type": "Person", "name": "Charlie Munger" }, "url": "https://sms4smile.com/quotes/charlie-munger/to-say-accounting-for-derivatives-is-americais-a-sewer-is-an-insult/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/3f5/charlie-munger-458_accounting_to-say-accounting-for-derivatives-is-ame_1055968.jpg", "contentUrl": "https://sms4smile.com/quotes/i/3f5/charlie-munger-458_accounting_to-say-accounting-for-derivatives-is-ame_1055968.jpg", "url": "https://sms4smile.com/quotes/i/3f5/charlie-munger-458_accounting_to-say-accounting-for-derivatives-is-ame_1055968.jpg", "width": 1080, "height": 1080, "caption": "“To say accounting for derivatives is Americais a sewer is an insult to sewage.” — Charlie Munger", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 2, "item": { "@type": "Quotation", "text": "I would argue that a majority of the horrors we face would not have happened if the accounting profession developed and enforced better accounting.", "creator": { "@type": "Person", "name": "Charlie Munger" }, "url": "https://sms4smile.com/quotes/charlie-munger/i-would-argue-that-a-majority-of-the-horrors-we-face-would-not-have/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/132/charlie-munger-458_accounting_i-would-argue-that-a-majority-of-the-hor_2487152.jpg", "contentUrl": "https://sms4smile.com/quotes/i/132/charlie-munger-458_accounting_i-would-argue-that-a-majority-of-the-hor_2487152.jpg", "url": "https://sms4smile.com/quotes/i/132/charlie-munger-458_accounting_i-would-argue-that-a-majority-of-the-hor_2487152.jpg", "width": 1080, "height": 1080, "caption": "“I would argue that a majority of the horrors we face would not have happened if the accounting profession…” — Charlie Munger", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 3, "item": { "@type": "Quotation", "text": "Proper accounting is like engineering. You need a margin of safety. Thank God we don't design bridges and airplanes the way we do accounting.", "creator": { "@type": "Person", "name": "Charlie Munger" }, "url": "https://sms4smile.com/quotes/charlie-munger/proper-accounting-is-like-engineering-you-need-a-margin-of-safety/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/c5f/charlie-munger-458_accounting_proper-accounting-is-like-engineering-yo_2058110.jpg", "contentUrl": "https://sms4smile.com/quotes/i/c5f/charlie-munger-458_accounting_proper-accounting-is-like-engineering-yo_2058110.jpg", "url": "https://sms4smile.com/quotes/i/c5f/charlie-munger-458_accounting_proper-accounting-is-like-engineering-yo_2058110.jpg", "width": 1080, "height": 1080, "caption": "“Proper accounting is like engineering. You need a margin of safety. Thank God we don't design bridges and…” — Charlie Munger", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 4, "item": { "@type": "Quotation", "text": "Anyone with an engineering frame of mind will look at [accounting standards] and want to throw up.", "creator": { "@type": "Person", "name": "Charlie Munger" }, "url": "https://sms4smile.com/quotes/charlie-munger/anyone-with-an-engineering-frame-of-mind-will-look-at-accounting/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/2ad/charlie-munger-458_accounting_anyone-with-an-engineering-frame-of-mind_1070052.jpg", "contentUrl": "https://sms4smile.com/quotes/i/2ad/charlie-munger-458_accounting_anyone-with-an-engineering-frame-of-mind_1070052.jpg", "url": "https://sms4smile.com/quotes/i/2ad/charlie-munger-458_accounting_anyone-with-an-engineering-frame-of-mind_1070052.jpg", "width": 1080, "height": 1080, "caption": "“Anyone with an engineering frame of mind will look at [accounting standards] and want to throw up.” — Charlie Munger", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 5, "item": { "@type": "Quotation", "text": "Derivative trading with mark-to-market accounting degenerates into mark-to-model. Two firms make a big derivative trade and the accountants on both sides show a large profit from the same trade.", "creator": { "@type": "Person", "name": "Charlie Munger" }, "url": "https://sms4smile.com/quotes/charlie-munger/derivative-trading-with-mark-to-market-accounting-degenerates-into/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/4f1/charlie-munger-458_accountants_derivative-trading-with-mark-to-market-a_1769653.jpg", "contentUrl": "https://sms4smile.com/quotes/i/4f1/charlie-munger-458_accountants_derivative-trading-with-mark-to-market-a_1769653.jpg", "url": "https://sms4smile.com/quotes/i/4f1/charlie-munger-458_accountants_derivative-trading-with-mark-to-market-a_1769653.jpg", "width": 1080, "height": 1080, "caption": "“Derivative trading with mark-to-market accounting degenerates into mark-to-model. Two firms make a big…” — Charlie Munger", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 6, "item": { "@type": "Quotation", "text": "The stupid and dishonest accountants allowed the genie of totally inappropriate accounting to descend on derivatives books. And once this has happened - people get status, etc. - it's impossible to get it back into the bottle.", "creator": { "@type": "Person", "name": "Charlie Munger" }, "url": "https://sms4smile.com/quotes/charlie-munger/the-stupid-and-dishonest-accountants-allowed-the-genie-of-totally/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/6d4/charlie-munger-458_accountants_the-stupid-and-dishonest-accountants-all_1736359.jpg", "contentUrl": "https://sms4smile.com/quotes/i/6d4/charlie-munger-458_accountants_the-stupid-and-dishonest-accountants-all_1736359.jpg", "url": "https://sms4smile.com/quotes/i/6d4/charlie-munger-458_accountants_the-stupid-and-dishonest-accountants-all_1736359.jpg", "width": 1080, "height": 1080, "caption": "“The stupid and dishonest accountants allowed the genie of totally inappropriate accounting to descend on…” — Charlie Munger", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 7, "item": { "@type": "Quotation", "text": "The SEC does way more good than harm - the last thing I would do is get rid of the SEC...if accounting were thoroughly fixed, a lot of other sins would go away. We're paying a huge price for deterioration of accounting.", "creator": { "@type": "Person", "name": "Charlie Munger" }, "url": "https://sms4smile.com/quotes/charlie-munger/the-sec-does-way-more-good-than-harm-the-last-thing-i-would-do-is-get/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/9e5/charlie-munger-458_accounting_the-sec-does-way-more-good-than-harm-the_772464.jpg", "contentUrl": "https://sms4smile.com/quotes/i/9e5/charlie-munger-458_accounting_the-sec-does-way-more-good-than-harm-the_772464.jpg", "url": "https://sms4smile.com/quotes/i/9e5/charlie-munger-458_accounting_the-sec-does-way-more-good-than-harm-the_772464.jpg", "width": 1080, "height": 1080, "caption": "“The SEC does way more good than harm - the last thing I would do is get rid of the SEC...if accounting were…” — Charlie Munger", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 8, "item": { "@type": "Quotation", "text": "Accounting is a big subject and there are huge forces in play. The entire momentum of existing thinking and existing custom is in a direction that allows terrible follies to happen, and the terrible follies have terrible consequences.", "creator": { "@type": "Person", "name": "Charlie Munger" }, "url": "https://sms4smile.com/quotes/charlie-munger/accounting-is-a-big-subject-and-there-are-huge-forces-in-play-the/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/1af/charlie-munger-458_accounting_accounting-is-a-big-subject-and-there-ar_1965349.jpg", "contentUrl": "https://sms4smile.com/quotes/i/1af/charlie-munger-458_accounting_accounting-is-a-big-subject-and-there-ar_1965349.jpg", "url": "https://sms4smile.com/quotes/i/1af/charlie-munger-458_accounting_accounting-is-a-big-subject-and-there-ar_1965349.jpg", "width": 1080, "height": 1080, "caption": "“Accounting is a big subject and there are huge forces in play. The entire momentum of existing thinking and…” — Charlie Munger", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 9, "item": { "@type": "Quotation", "text": "Accounting incomes were reduced by discrepancy [ but] \"the net amount paid by lawyers for lawyerly discrepancy is close to zippo. In this case, the goddess of justice was blind.", "creator": { "@type": "Person", "name": "Charlie Munger" }, "url": "https://sms4smile.com/quotes/charlie-munger/accounting-incomes-were-reduced-by-discrepancy-but-the-net-amount/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/614/charlie-munger-458_accounting_accounting-incomes-were-reduced-by-discr_322437.jpg", "contentUrl": "https://sms4smile.com/quotes/i/614/charlie-munger-458_accounting_accounting-incomes-were-reduced-by-discr_322437.jpg", "url": "https://sms4smile.com/quotes/i/614/charlie-munger-458_accounting_accounting-incomes-were-reduced-by-discr_322437.jpg", "width": 1080, "height": 1080, "caption": "“Accounting incomes were reduced by discrepancy [ but] \"the net amount paid by lawyers for lawyerly…” — Charlie Munger", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 10, "item": { "@type": "Quotation", "text": "In engineering, people have a big margin of safety. But in the financial world, people don't give a damn about safety. They let it balloon and balloon and balloon. It's aided by false accounting.", "creator": { "@type": "Person", "name": "Charlie Munger" }, "url": "https://sms4smile.com/quotes/charlie-munger/in-engineering-people-have-a-big-margin-of-safety-but-in-the/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/e8a/charlie-munger-458_accounting_in-engineering-people-have-a-big-margin_1891460.jpg", "contentUrl": "https://sms4smile.com/quotes/i/e8a/charlie-munger-458_accounting_in-engineering-people-have-a-big-margin_1891460.jpg", "url": "https://sms4smile.com/quotes/i/e8a/charlie-munger-458_accounting_in-engineering-people-have-a-big-margin_1891460.jpg", "width": 1080, "height": 1080, "caption": "“In engineering, people have a big margin of safety. But in the financial world, people don't give a damn…” — Charlie Munger", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 11, "item": { "@type": "Quotation", "text": "I also want to raise the possibility that there are, in the very long term, \"virtue effects\" in economics- for instance that widespread corrupt accounting will eventually create bad long term consequences as a sort of obverse effect from the virtue-based boost double-entry book-keeping gave to the heyday of Venice. I suggest that when the financial scene starts reminding you of Sodomand Gomorrah, you should fear practical consequences even if you like to participate in what is going on.", "creator": { "@type": "Person", "name": "Charlie Munger" }, "url": "https://sms4smile.com/quotes/charlie-munger/i-also-want-to-raise-the-possibility-that-there-are-in-the-very-long/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/79f/charlie-munger-458_accounting_i-also-want-to-raise-the-possibility-tha_2993526.jpg", "contentUrl": "https://sms4smile.com/quotes/i/79f/charlie-munger-458_accounting_i-also-want-to-raise-the-possibility-tha_2993526.jpg", "url": "https://sms4smile.com/quotes/i/79f/charlie-munger-458_accounting_i-also-want-to-raise-the-possibility-tha_2993526.jpg", "width": 1080, "height": 1080, "caption": "“I also want to raise the possibility that there are, in the very long term, \"virtue effects\" in economics…” — Charlie Munger", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 12, "item": { "@type": "Quotation", "text": "You have to know accounting. It's the language of practical business life. It was a very useful thing to deliver to civilization. I've heard it came to civilization through Venice which of course was once the great commercial power in the Mediterranean. However, double entry bookkeeping was a hell of an invention.", "creator": { "@type": "Person", "name": "Charlie Munger" }, "url": "https://sms4smile.com/quotes/charlie-munger/you-have-to-know-accounting-it-s-the-language-of-practical-business/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/bff/charlie-munger-458_accountants_you-have-to-know-accounting-it-s-the-lan_3093259.jpg", "contentUrl": "https://sms4smile.com/quotes/i/bff/charlie-munger-458_accountants_you-have-to-know-accounting-it-s-the-lan_3093259.jpg", "url": "https://sms4smile.com/quotes/i/bff/charlie-munger-458_accountants_you-have-to-know-accounting-it-s-the-lan_3093259.jpg", "width": 1080, "height": 1080, "caption": "“You have to know accounting. It's the language of practical business life. It was a very useful thing to…” — Charlie Munger", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 13, "item": { "@type": "Quotation", "text": "Creative accounting is an absolute curse to a civilization. One could argue that double-entry bookkeeping was one of history's great advances. Using accounting for fraud and folly is a disgrace. In a democracy, it often takes a scandal to trigger reform. Enron was the most obvious example of a business culture gone wrong in a long, long time.", "creator": { "@type": "Person", "name": "Charlie Munger" }, "url": "https://sms4smile.com/quotes/charlie-munger/creative-accounting-is-an-absolute-curse-to-a-civilization-one-could/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/f6f/charlie-munger-458_absolutes_creative-accounting-is-an-absolute-curse_2224721.jpg", "contentUrl": "https://sms4smile.com/quotes/i/f6f/charlie-munger-458_absolutes_creative-accounting-is-an-absolute-curse_2224721.jpg", "url": "https://sms4smile.com/quotes/i/f6f/charlie-munger-458_absolutes_creative-accounting-is-an-absolute-curse_2224721.jpg", "width": 1080, "height": 1080, "caption": "“Creative accounting is an absolute curse to a civilization. One could argue that double-entry bookkeeping…” — Charlie Munger", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 14, "item": { "@type": "Quotation", "text": "Everyone caved, adopted loose [accounting] standards, and created exotic derivatives linked to theoretical models. As a result, all kinds of earnings, blessed by accountants, are not really being earned. When you reach for the money, it melts away. It was never there. It [accounting for derivatives] is just disgusting. It is a sewer, and if I'm right, there will be hell to pay in due course. All of you will have to prepare to deal with a blow-up of derivative books.", "creator": { "@type": "Person", "name": "Charlie Munger" }, "url": "https://sms4smile.com/quotes/charlie-munger/everyone-caved-adopted-loose-accounting-standards-and-created-exotic/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/3d3/charlie-munger-458_accountants_everyone-caved-adopted-loose-accounting_1383135.jpg", "contentUrl": "https://sms4smile.com/quotes/i/3d3/charlie-munger-458_accountants_everyone-caved-adopted-loose-accounting_1383135.jpg", "url": "https://sms4smile.com/quotes/i/3d3/charlie-munger-458_accountants_everyone-caved-adopted-loose-accounting_1383135.jpg", "width": 1080, "height": 1080, "caption": "“Everyone caved, adopted loose [accounting] standards, and created exotic derivatives linked to theoretical…” — Charlie Munger", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 15, "item": { "@type": "Quotation", "text": "I talked to one accountant, a very nice fellow who I would have been glad to have his family marry into mine. He said, \"What these other accounting firms have done is very unethical. The [tax avoidance scheme] works best if it's not found out [by the IRS], so we only give it to our best clients, not the rest, so it's unlikely to be discovered. So my firm is better than the others.\" [Laughter] I'm not kidding. And he was a perfectly nice man. People just follow the crowd...Their mind just drifts off in a ghastly way.", "creator": { "@type": "Person", "name": "Charlie Munger" }, "url": "https://sms4smile.com/quotes/charlie-munger/i-talked-to-one-accountant-a-very-nice-fellow-who-i-would-have-been/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/b14/charlie-munger-458_accountants_i-talked-to-one-accountant-a-very-nice-f_2980092.jpg", "contentUrl": "https://sms4smile.com/quotes/i/b14/charlie-munger-458_accountants_i-talked-to-one-accountant-a-very-nice-f_2980092.jpg", "url": "https://sms4smile.com/quotes/i/b14/charlie-munger-458_accountants_i-talked-to-one-accountant-a-very-nice-f_2980092.jpg", "width": 1080, "height": 1080, "caption": "“I talked to one accountant, a very nice fellow who I would have been glad to have his family marry into…” — Charlie Munger", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } } ] }, { "@type": "CollectionPage", "@id": "https://sms4smile.com/quotes/about/accounting/charlie-munger/#webpage", "url": "https://sms4smile.com/quotes/about/accounting/charlie-munger/", "name": "Accounting Quotes by Charlie Munger", "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "mainEntity": { "@id": "https://sms4smile.com/quotes/about/accounting/charlie-munger/#itemlist" }, "primaryImageOfPage": { "@id": "https://sms4smile.com/quotes/i/3f5/charlie-munger-458_accounting_to-say-accounting-for-derivatives-is-ame_1055968.jpg" }, "description": "15 Accounting quotes by Charlie Munger. Plus more from Charlie Munger and more Accounting sayings from other authors.", "breadcrumb": { "@id": "https://sms4smile.com/quotes/about/accounting/charlie-munger/#breadcrumb" } }, { "@type": "BreadcrumbList", "@id": "https://sms4smile.com/quotes/about/accounting/charlie-munger/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Topics", "item": "https://sms4smile.com/quotes/categories/" }, { "@type": "ListItem", "position": 4, "name": "Accounting", "item": "https://sms4smile.com/quotes/about/accounting/" }, { "@type": "ListItem", "position": 5, "name": "Charlie Munger", "item": "https://sms4smile.com/quotes/about/accounting/charlie-munger/" } ] }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```