Adequate Quote by Charlie Munger
“The general culture of investment banking has deteriorated over the years. We did a $6 million deal years ago for Diversified Retailing and we were rigorously and intelligently screened. They bankers cared and wanted to protect their clients. The culture now is that anything that can be sold for a profit will be. 'Can you sell it?' is the moral test, and that's not an adequate test.”
About This Quote
Source Interview: CNBC, 2023
The quote criticizes the shift from client‑focused, diligent banking to a profit‑driven, sales‑first mindset, warning that moral tests based solely on sellability are insufficient.
In simple terms: Banking culture has become profit‑focused, ignoring client care.
Key Takeaway
Prioritize client interests over mere profit.
Themes
ethics
finance
corporate culture
Mood
cautious
critical
Type
observational
cautionary
When to use this quote
- investment banking
- client advisory
- deal sourcing
- risk assessment
Key Concepts
moral testing
client fiduciary duty
Questions to Reflect On
- How can banks reinforce client‑first values?
- What safeguards prevent profit‑only decision making?
A Different Perspective
Profit focus can erode trust and long‑term value.
![“They [Mc Donalds] take people and give them a first job, which enables them to get a second job. They do a very good job of educating troubled young people to be good citizens and they're probably more successful than charter schools.” quote by Charlie Munger](https://sms4smile.com/quotes/img-quotes/a55/charlie-munger-458_be-good_they-mc-donalds-take-people-and-give-the_41809.jpg)
![“It is way less certain to be a wonderful business in the future. The threat is alternative mediums of information. Every newspaper is scrambling to parlay their existing advantage into dominance on the Internet. But it is way less sure [that this will occur] than the certainty 20 years ago that…” quote by Charlie Munger](https://sms4smile.com/quotes/img-quotes/8d0/charlie-munger-458_advantage_it-is-way-less-certain-to-be-a-wonderful_59627.jpg)
