Herds Quote by Charlie Munger
“Mimicking the herd invites regression to the mean.”
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.
Think independently, avoid average.
Themes
Mood
Type
When to use this quote
- investment choices
- team projects
- market analysis
- personal finance
Key Concepts
Questions to Reflect On
- How does peer pressure affect your decisions?
- When might conformity be beneficial?
Groupthink can suppress innovative ideas.