If the value of a company doesn’t just scream out at you, it’s too close.

What did Charlie Munger mean by:

If the value of a company doesn’t just scream out at you, it’s too close.

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This quote essentially means that if the value of a company is not immediately obvious or striking, then it’s too close to call and may not be a good investment. It’s a statement that emphasizes the importance of clear, undeniable value in a business. If you have to squint, ponder, or make a lot of assumptions to see the worth of a company, it may be too risky or uncertain.

This quote can be seen as a call for simplicity and clarity in evaluating the worth of a company. It’s a reminder to avoid getting caught up in complexities and uncertainties that can cloud judgment and lead to poor decisions. It’s about trusting your gut instinct and not forcing a decision when the answer isn’t clear.

In today’s world, this idea is more relevant than ever. With the rise of startup culture and new, innovative business models, it can be tempting to jump on the bandwagon of the latest trend or hype. However, this quote reminds us to take a step back and look for the clear, undeniable value in a company before investing our time, money, or resources.

In terms of personal development, this quote can also be applied. It serves as a reminder to invest our time and energy in pursuits that offer clear, undeniable value. Whether it’s a job, a relationship, or a hobby, if its worth doesn’t scream out at you, it might be too close to call. It might be better to wait for something that truly resonates with you rather than settling for something that’s merely “good enough”. This can help us make decisions that are more aligned with our values and long-term goals, leading to greater satisfaction and success in life.

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