Some Munger pearls

Found these today.. ----- IT PAYS TO BUY QUALITY: Munger persuaded Buffett to embark on the new investment strategy with the 1972 acquisition of South San Francisco's See's Candies for $25 million -- a tiny fraction of what it's worth today. "See's candy company was the first high-quality business we ever bought," he observed. See's also demonstrated to the value of building a "seamless web of trust" between a company and its customers and suppliers, he said in making the point that doing the right thing can pay big dividends both personally and professionally. One has to have a lot of patience in waiting for the right investment opportunities to come along, and similar patience and selectivity can be useful in one's personal life as well, Munger said. "When you have doubts about a person, you can pass," he said. "There's enough nice people to interface with." Other observations Munger shared: • Strategic plans prompt people to do something when sometimes the best course of action is no action. "Strategic plans cause more dumb decisions than anything else in America." • Their mistakes tended to be "great losses of omission. "If we had invested in McDonald's in its infancy ..." he ruminated. Berkshire recently acquired a significant stake in the nation's largest restaurant chain. • Know your limits. "A money manager with an IQ of 160 and thinks it's 180 will kill you," he said. "Going with a money manager with an IQ of 130 who thinks its 125 could serve you well."