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Herds Quote by Charlie Munger

“Mimicking the herd invites regression to the mean.” quote by Charlie Munger
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“Mimicking the herd invites regression to the mean.”

Charlie Munger

About This Quote

Source Speech: Annual Berkshire Hathaway Shareholder Meeting, 2018

Following the crowd leads to average outcomes, as collective behavior smooths extremes.

In simple terms: Following the herd yields average results.

Key Takeaway

Think independently, avoid average.

Themes

independence statistics decision‑making

Mood

cautious analytical

Type

advice observational

When to use this quote

  • investment choices
  • team projects
  • market analysis
  • personal finance

Key Concepts

regression to the mean herd behavior

Questions to Reflect On

  • How does peer pressure affect your decisions?
  • When might conformity be beneficial?
A Different Perspective

Groupthink can suppress innovative ideas.

3.9 out of 5 (6 ratings)

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