Due Diligence

CHARLIE MUNGER: Yeah. I would argue that we have lower due diligence expenses than anybody else in America — (laughter) — and that we have had less trouble because we had less expense. I know of an investment operation in America that pays over $200 billion a year that — CHARLIE MUNGER: — every year to its accountants, a lot to help them with due diligence. And I think our operation is safer because we think like engineers. We want these margins of reliability. And they’re trying to do something really difficult, which is to have fine-grain judgments in very complex areas, and rely on other people to do it who are getting paid fees. It’s a very dicey process to do that. I think it’s much safer to do our way.