This quote is a clever twist on conventional thinking about assets and liabilities. In financial terms, an asset is something valuable that an individual, corporation or country owns, benefits from or has use of, in generating income. A liability, on the other hand, is an obligation or debt that must be paid. Traditionally, people tend to view assets as good because they add value, and liabilities as bad because they subtract value.

However, Munger’s quote suggests the opposite. He argues that liabilities are always 100 percent good because they are certain. When you owe something, the amount is definite and known. It’s a fixed number. You know exactly what you are dealing with and can plan accordingly.

On the other hand, assets can be tricky. Their value can fluctuate and is often dependent on various factors such as market conditions, demand and supply, or even subjective perceptions. An asset may appear valuable today, but there’s no guarantee it will retain that value in the future. This uncertainty is what Munger suggests we should worry about.

Applying this idea to today’s world, one might consider the volatility of the stock market, the unpredictability of real estate prices, or even the fluctuating value of cryptocurrencies. These are all assets, but their value can change rapidly, and sometimes unpredictably.

In terms of personal development, this quote can be interpreted as a reminder to be cautious about where we invest our time, energy, and resources (our personal assets). It’s easy to overestimate the value of certain pursuits, relationships, or goals (perceived assets), and underestimate the certainty of our obligations and responsibilities (liabilities). The quote encourages us to reassess our priorities, to ensure we’re not overlooking the value of our liabilities, or overestimating the worth of our assets.