Sunday, February 28, 2010

Charlie Munger Video/Interview

 Charlie Munger of Berkshire Hathaway fame, talking to a professor at Stanford about accounting practices, etc....

Addendum/Commentary: One thing the self-righteous Mr. Munger doesn't mention when he talks 
about accounting is often accountants are bullied by CFOs (who are bullied by CEOs) to lie about the 
numbers. When accountants are threatened with their jobs or have career advancement placed as a carrot in front of 
their nose they tend to get much more liberal with how numbers are recorded and where they are recorded.  
There has been some funny stuff going on with how Wells Fargo (Wells Fargo is part of 
Berkshire Hathaway) records their Derivatives on the balance sheet, but I don't expect Charlie to be 
writing any Slate stories on that or answering questions from Stanford professors on that any time soon.
You can read the details of Wells Fargo's interesting way of recording derivatives here and here.

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