In his own words · Leverage & debt

“It's really crazy if you're very comfortable and secure to leverage. The incremental value of getting a little extra return is not that great.”

— Charlie Munger · Wesco Financial annual meeting, 1991 (Pasadena), as published in Outstanding Investor Digest, May 24, 1991 · 1991

As recalled from Wesco Financial annual meeting, 1991 (Pasadena), as published in Outstanding Investor Digest, May 24, 1991 · 1991 — the sense is right but the wording is not verbatim.

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“There are only three ways a smart person can go broke: liquor, ladies, and leverage.”

Attributed to Munger via Warren Buffett · as recalled

Buffett has repeatedly credited this line to Munger; no single primary recording pins the exact occasion.

“In engineering, people have a big margin of safety. But in the financial world, people don't give a damn about safety. They let it balloon and balloon and balloon. It's aided by false accounting.”

Berkshire Hathaway annual meeting, 2003 (Whitney Tilson's meeting notes; quoted in Tren Griffin, 'Charlie Munger: The Complete Investor', 2015) · 2003 · as recalled · where he said it ↗

From Tilson's 2003 notes (near-verbatim, not an official transcript).

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