Be careful Quote by Charlie Munger
“A lot of people think if you just had more process and more compliance -- checks and doublechecks and so forth -- you could create a better result in the world. Well, Berkshire has had practically no process. We had hardly any internal auditing until they forced it on us. We just try to operate in a seamless web of deserved trust and be careful whom we trust.”
About This Quote
Source Speech: Berkshire Hathaway Annual Meeting, 2005
Munger argues that excessive processes and compliance can hinder performance, advocating for trust-based, low‑bureaucracy operations.
In simple terms: Too many rules can hurt results; trust works better.
Key Takeaway
Build trust, limit unnecessary procedures.
Themes
trust
efficiency
leadership
Mood
cautious
reflective
Type
business
philosophical
When to use this quote
- team building
- venture capital
- government agencies
- non‑profits
- software development
Key Concepts
organizational design
risk management
corporate culture
Questions to Reflect On
- How do you balance trust with accountability?
- What controls are essential in your organization?
A Different Perspective
Trust can be abused; lack of oversight may cause fraud.