--- title: "Meaning & Key Takeaway of: A lot of people think if you just had…" description: "\"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 t..." image: "https://sms4smile.com/quotes/i/26a/charlie-munger-458_be-careful_a-lot-of-people-think-if-you-just-had-mo_839202.jpg" --- # A lot of people think if you just had more process and… ![“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…” quote by Charlie Munger](https://sms4smile.com/quotes/i/26a/charlie-munger-458_be-careful_a-lot-of-people-think-if-you-just-had-mo_839202.jpg) [Download](https://sms4smile.com/quotes/i/26a/charlie-munger-458_be-careful_a-lot-of-people-think-if-you-just-had-mo_839202.jpg) [Open image](https://sms4smile.com/quotes/i/26a/charlie-munger-458_be-careful_a-lot-of-people-think-if-you-just-had-mo_839202.jpg) > “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.” [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. 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. ★ ★ ★ ★ ★ No ratings yet [Compliance](https://sms4smile.com/quotes/about/compliance/) [Customer](https://sms4smile.com/quotes/about/customer/) [People](https://sms4smile.com/quotes/about/people/) [Process](https://sms4smile.com/quotes/about/process/) [Thinking](https://sms4smile.com/quotes/about/thinking/) [World](https://sms4smile.com/quotes/about/world/) ## Related quotes > [A robust internal auditing program shows its presence both at the beginning and end of continual improvement projects. In the beginning, internal audits identify…](https://sms4smile.com/quotes/john-novak/a-robust-internal-auditing-program-shows-its-presence-both-at-the/) [John Novak](https://sms4smile.com/quotes/author/john-novak/) > [ We don't have an isolated group \[of senior managers\] surrounded by servants. Berkshire's headquarters is a tiny little suite. We just came back from… ](https://sms4smile.com/quotes/charlie-munger/we-don-t-have-an-isolated-group-of-senior-managers-surrounded-by/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [Berkshire has the lowest turnover of any major company in the U.S.The Walton family owns more of Wal-Mart than Buffett owns of Berkshire, so…](https://sms4smile.com/quotes/charlie-munger/berkshire-has-the-lowest-turnover-of-any-major-company-in-the-u-s-the/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [One of the smartest things a person can do is dampen investment expectations, especially with Berkshire. That would be mature and responsible. I like…](https://sms4smile.com/quotes/charlie-munger/one-of-the-smartest-things-a-person-can-do-is-dampen-investment/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [I'm a bull on Berkshire Hathaway. There may be some considerable waiting, but I think there are some good days ahead.](https://sms4smile.com/quotes/charlie-munger/i-m-a-bull-on-berkshire-hathaway-there-may-be-some-considerable/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [Berkshire was built on the eternal verities: basic mathematics, basic horse sense, basic fear, and basic diagnosis of human nature to make predictions regarding…](https://sms4smile.com/quotes/charlie-munger/berkshire-was-built-on-the-eternal-verities-basic-mathematics-basic/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [Berkshire's past record has been almost ridiculous. If Berkshirehad used even half the leverage of, say, Rupert Murdoch, it would be five times its…](https://sms4smile.com/quotes/charlie-munger/berkshire-s-past-record-has-been-almost-ridiculous-if-berkshirehad/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [At Berkshire Hathaway we do not like to compete against Chinese manufacturers.](https://sms4smile.com/quotes/charlie-munger/at-berkshire-hathaway-we-do-not-like-to-compete-against-chinese/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [We don't have any miraculous way of avoiding taxes at Wesco and Berkshire.](https://sms4smile.com/quotes/charlie-munger/we-don-t-have-any-miraculous-way-of-avoiding-taxes-at-wesco-and/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [This is an amazingly sound place. We are more disaster-resistant than most other places. We haven't pushed it as hard as other people would…](https://sms4smile.com/quotes/charlie-munger/this-is-an-amazingly-sound-place-we-are-more-disaster-resistant-than/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [If you get into Scientology, you will go to auditing. It's like therapy except that there is an E-meter between you and your auditor.…](https://sms4smile.com/quotes/lawrence-wright/if-you-get-into-scientology-you-will-go-to-auditing-it-s-like-therapy/) [Lawrence Wright](https://sms4smile.com/quotes/author/lawrence-wright/) > [We are constantly auditing our supply chain. Making sure that safety standards are - are, you know, are the highest. We're making sure that…](https://sms4smile.com/quotes/tim-cook/we-are-constantly-auditing-our-supply-chain-making-sure-that-safety/) [Tim Cook](https://sms4smile.com/quotes/author/tim-cook/) > [My fantasy is that there is a new regulatory body that is in charge of algorithmic auditing.](https://sms4smile.com/quotes/cathy-o-neil/my-fantasy-is-that-there-is-a-new-regulatory-body-that-is-in-charge/) [Cathy O'Neil](https://sms4smile.com/quotes/author/cathy-o-neil/) > [Paralysis, anxiety stomachs, arthritis and many ills and aberrations have been relieved by auditing them. An E-Meter shows them up and makes them confess…](https://sms4smile.com/quotes/lawrence-wright/paralysis-anxiety-stomachs-arthritis-and-many-ills-and-aberrations/) [Lawrence Wright](https://sms4smile.com/quotes/author/lawrence-wright/) > [I set up a company, an algorithmic auditing company myself. 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It’s the one sin you can’t have any fun at.](https://sms4smile.com/quotes/charlie-munger/what-good-is-envy-it-s-the-one-sin-you-can-t-have-any-fun-at/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [We believe that almost all really good investment records will involve relatively little diversification. The basic idea that it was hard to find good…](https://sms4smile.com/quotes/charlie-munger/we-believe-that-almost-all-really-good-investment-records-will/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [It is way less certain to be a wonderful business in the future. The threat is alternative mediums of information. 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They want to keep up…](https://sms4smile.com/quotes/charlie-munger/i-ve-heard-that-one-half-of-the-students-at-elite-schools-want-to-go/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) [Explore all 544 Charlie Munger quotes ](https://sms4smile.com/quotes/author/charlie-munger/) ## More Be careful quotes > [Be careful. 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