Thread by @BrentBeshore

Munger hasn't cared about optics for a long time and it's a helpful window to reality as he sees it. Kudos to @jasonzweigwsj for relaying the conversation

Here are some annotations. Quotes are Munger's. Rest are mine.

wsj.com/articles/charl…

"Everybody’s just frozen.”

The only deals getting done are ones that were already on the finish line and for assets logically unaffected by COVID. Otherwise, PE, VC, real estate is all shut. Banks aren’t extending new lines, let alone deal debt.

"We’re like the captain of a ship when the worst typhoon that’s ever happened comes. We just want to get through the typhoon.”

As one of my investors said to me, “Live to fight another day.” The future has always been murky, but it’s currently the visibility of diner coffee.

"They’ve never seen anything like it. Their playbook does not have this as a possibility.”

“This thing is different."

This isn’t 2008 or 1918 or 2000. There is no playbook. Prudent approach is to create as much optionality as possible and wait.

"Everybody talks as if they know what’s going to happen, and nobody knows what’s going to happen.”

If you’re not confused, you haven’t been paying attention.

"We may have a different kind of a mess. All this money-printing may start bothering us.”

The magnitude of intervention is difficult to comprehend. What does trillions of money printing do? It distorts asset prices. By how much? No clue.

"It’s quite possible that never again—not again in a long time—will we have a level of employment again like we just lost.”

What’s “normal?” Is it low inflation, moderate growth, and tight labor markets? That has rarely been normal and likely won’t be part of the “new normal."

@jasonzweigwsj: "Surely hordes of corporate executives must be calling Berkshire begging for capital?"

“No, they aren’t,” said Mr. Munger.

When you don't know what you need, it's impossible to ask for a lifeline. As CEOs get clarity, I expect the calls to pick up.