The people who design easily-gameable systems belong in the lowest circle of Hell.
Munger gives a bunch of puzzles in the above speech on the shortcomings of Economics. The salient criticism is the failure of economics to fully absorb developments in psychology (behavioral economics). So, the puzzles are mostly about human nature.
The above quote is fictionalized into a story of The Great Financial Scandal of 2003.
Over the long term, its hard for a stock to earn a much better return than the business which underlies it earns. If the business earns 6% on capital over 40 years and you hold it for that 40 years, youre not going to make much different than a 6% returneven if you originally buy it at a huge discount. Conversely, if a business earns 18% on capital over 20 or 30 years, even if you pay an expensive looking price, youll end up with a fine result.