“Everything we do comes back to opportunity cost. But it, to some extent — in fact, to some considerable extent — we are guessing at our future opportunity cost. Warren is basically saying that he’s guessing that he’ll have opportunities in due course to put out money at pretty attractive rates of return, and therefore, he’s not going to waste a lot of firepower now at lower returns. But that’s an opportunity cost calculation. And if interest rates were to more or less permanently settle at 1 percent or something like that, and Warren were to reappraise his notions of future opportunity cost, he would change the numbers. It’s like Keynes said, ‘What do you do when you change your view of the facts? Well, you change your conduct.’ But so far at least, we have hurdles in our mind which are basically — well, they involve, implicitly, future opportunity cost.” —Charlie Munger
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