I’ve just finished watching Mohnish Pabrai in his recent interview with the Capital Compounders Show in which he shared a fascinating insight on share buybacks. His discussion on “cannibals”—companies that aggressively buy back their own stock—provides a powerful mental model for investors looking to maximize long-term wealth accumulation. “I think … Read More
Value Investing Reimagined: How Buffett Moved Beyond Cigar Butt Stocks
Warren Buffett’s approach to investing has evolved significantly over the decades, and his remarks during the 2003 Berkshire Hathaway Annual Meeting offer a glimpse into that transformation. What began as a strict adherence to Benjamin Graham’s quantitative approach to investing eventually shifted toward a more nuanced understanding of business quality—largely … Read More
Warren Buffett: There Is No Place For Emotion In Investing
During the 2023 Berkshire Hathaway Annual Meeting, Warren Buffett discussed the importance of removing emotions from investment and business decisions. He and Charlie Munger pride themselves on maintaining objectivity, highlighting that emotional decision-making has no place in successful investing. While Buffett acknowledges that occasional emotional biases may arise, such as … Read More
Warren Buffett: Focus On The Spots Where You Have An Edge
During the 2019 Berkshire Hathaway Annual Meeting, Warren Buffett and Charlie Munger discussed some valuable lessons for investors. First, thorough research and knowledge give a competitive edge, as Buffett demonstrated by seeking obscure information in insurance. Second, expertise in a specific area is crucial; focusing on what you understand best … Read More
Warren Buffett: We Prefer Businesses That Are Drowning In Cash
In the 2008 Berkshire Hathaway Annual Meeting, Warren Buffett explained that investment involves assessing an asset’s potential to generate future returns, focusing on its fundamentals rather than market speculation. He highlights the importance of understanding a business’s nature and financial statements to predict its future performance. Buffett shares his approach … Read More
Charlie Munger: Don’t Invest Like A Lemming
Here’s an excerpt from the 2008 Berkshire Hathaway Meeting in which Munger and Buffett discuss how not to invest like a lemming, saying: WARREN BUFFETT: So with that, we’ll go right over to post number 1 and start in with the first question. AUDIENCE MEMBER: Very good morning to Mr. … Read More
Charlie Munger: Great Investors Remain Rational, Objective, and Dispassionate
Here’s some great Charlie Munger quotes from the book Charlie Munger: The Complete Investor, by Tren Griffin. Munger is highlighting the importance of investors remaining rational, objective, and dispassionate: Rationality is not just something you do so that you can make more money; it’s a binding principle. Rationality is a … Read More
Charlie Munger: An Idiot Could Diversify A Portfolio!
Here’s a great excerpt from Charlie Munger’s Daily Journal Meeting earlier this year in he discusses why portfolio diversification is completely unnecessary. He illustrates the point with a great real-life example saying: The idea of diversification makes sense to a point if you don’t know what you’re doing and you … Read More
Charlie Munger: The Two Markets That Are Most Inefficient
Here’s a great excerpt from Whitney Tilson’s notes on the 2007 Wesco Annual Meeting. During the meeting Charlie Munger provides some great insights on the growing popularity of value investing, efficient markets, and the two markets that are most inefficient: Is value investing becoming more widespread? I think our way … Read More
Daily Journal Corp (Charles Munger) – Top 10 Holdings Q2 2019
One of the best resources for investors are the publicly available 13F-HR documents that each fund is required to submit to the SEC. These documents allow investors to track their favorite superinvestors, their fund’s current holdings, plus their new buys and sold out positions. We spend a lot of time … Read More
Charlie Munger: Great Investors Can Tune Out Standard Stupidities
In 2009 Charlie Munger did a great interview with The Stanford Lawyer. During the interview Munger discusses the skills of great investors, mistakes that he sees executives making, and the problem with banks increasing leverage in order to remain competitive saying. Here’s an excerpt from the interview: You’ve often said … Read More
Charlie Munger: How Do You Become A Better Investor
Here’s a great passage from Poor Charlie’s Almanac in which Charlie Munger provides some sage advice on how one can become a better investor saying: “How do some people get wiser than other people? Partly it is inborn temperament. Some people do not have a good temperament for investing. They’re … Read More
Charlie Munger: I’m Ashamed On Missing Out On Google and, Beware of IPO Unicorns
Here’s a great recent interview with Charles Munger and Andy Serwer at Yahoo Finance – Influencers. There’s one passage in particular in which Munger admits to being ashamed that he missed out on Google, and has the following to say about loss-making Unicorn IPO’s: “Well, there are a whole lot … Read More
Charlie Munger: Focus Investing – One Way To Beat The Market
One of our favorite investing books is Poor Charlie’s Almanack by Peter Kaufman, and there’s one passage in the book in which Charlie Munger explains how he and Buffett use ‘focus investing’ to beat the market, saying: “Our investment style has been given a name-focus investing-which implies ten holdings, not … Read More
Charlie Munger: I Made Four Or Five Hundred Million Dollars From Two Decisions, With Almost No Risk
In this short interview Charles Munger explains how he made four or five hundred million dollars from just two decisions: “I talked about patience. I read Barron’s for fifty years. In fifty years I found one investment opportunity in Barron’s. I made about $80 Million, with almost no risk. I … Read More
Charlie Munger: Moral Investing – We Could See It Was Like Putting $100 Million In A Bushel Basket And Setting It On Fire As We Walked Away
Here’s a great video with Charles Munger and Warren Buffett at the 2005 Berkshire Hathaway shareholder meeting in which they discuss the moral distinction between buying a stock and a company. Here’s an excerpt from the video: CHARLIE MUNGER: Yeah. I think he’s asking in part, are there some businesses … Read More
Charlie Munger: That Decision Has Cost Me Now About $5 Billion
Here’s a great recent interview with Charlie Munger & Li Lui in which Munger recalls one of his greatest investment mistakes that cost him $5 Billion. Here’s his recollection: Munger: Let’s take a simple question. As I said in that book. They offered me three hundred shares in Belridge Oil, which … Read More
Charlie Munger On Telsa and Elon Musk
We’ve just been watching a great recent interview with Charlie Munger in which he was asked his thoughts on Telsa and Elon Musk. Here’s his response: Munger: Well it’s already created more significance than anybody would have predicted and its founder is bold and brilliant and swings for the fences. … Read More
Charlie Munger: Look For Businesses Using The Cancer Surgery Formula
In a 1995 edition of The Outstanding Investor Digest, Charlie Munger recounted the types of business models that he and Warren Buffett like to invest in. Most noteworthy is what he calls the ‘cancer surgery formula’ model saying: “I’ve had many friends in the sick-business-fix-up-game over a long lifetime. And … Read More
Charlie Munger: The First Rule Of Value Investing
Here’s a great interview with Charlie Munger and Yahoo Finance Editor-In-Chief Andy Serwer. During the interview Munger discusses the first rule of value investing: Value investing has changed over the years, but the fundamental way its disciples think about it hasn’t, according to Berkshire Hathaway (BRK.A, BRK.B) vice chair Charlie Munger. … Read More
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