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Activity Quote by Charlie Munger

“We have a higher percentage of the intelligentsia engaged in buying and selling pieces of paper and promoting trading activity than in any past era. A lot of what I see now reminds me of Sodomand Gomorrah. You get activity feeding on itself, envy and imitation. It has happened in the past that…” quote by Charlie Munger
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“We have a higher percentage of the intelligentsia engaged in buying and selling pieces of paper and promoting trading activity than in any past era. A lot of what I see now reminds me of Sodomand Gomorrah. You get activity feeding on itself, envy and imitation. It has happened in the past that there came bad consequences.”

Charlie Munger

About This Quote

Source Speech: Annual Shareholder Meeting, Berkshire Hathaway, 2018

Modern markets are driven by speculation and imitation, echoing historic moral decay.

In simple terms: People trade like in ancient Sodom.

Key Takeaway

Beware herd behavior, seek substance.

Themes

speculation imitation morality

Mood

cautious critical

Type

analytical philosophical

When to use this quote

  • investment decisions
  • policy making
  • education
  • media analysis

Key Concepts

economics behavioral finance history

Questions to Reflect On

  • What signs of herd behavior do you see today?
  • How can we encourage substance over hype?
A Different Perspective

Speculation can also fuel innovation.

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