The Return on Equity of the Poor 500

Mr. Munger: I never thought it would happen, so I start out with the fact that you'd have been dead wrong if in terms of what the return on equity in 1996 or 1995, 1997 would be. It does not seem to me that 22 percent returns on equity are sustainable in a world where long term interest rate is 7 percent. You would just think that there would be some sort of leveling effect between 7 and 22," he says.