It’s a combination of sin and folly. Lending institutions showed profits where no one would do so until loans matured. The accounting profession laid down on the job again. Poor lending—how could they do it and still shave in the morning? The face looking back at them was evil and stupid.---Charlie Munger (while responding to a question about sub-prime lending)

The concept of hurdle rates makes nothing but sense, but it doesn’t work. Hurdle rates don’t work as well as a system of comparing things. Finance departments ignore it, because it’s not easy to teach. Just because you can measure something doesn’t mean it’s the determining variable in an uncertain world. The concept of opportunity cost is overlooked. In the real world, your opportunity costs are what you want to base your decisions on.---Charlie Munger (while responding to a question about rate of return & discounting)