Quotessence
Home / Quotes / Quote by Charlie Munger

Quote by Charlie Munger

“The number one idea is to view a stock as an ownership of the business and to judge the staying quality of the business in terms of its competitive advantage. Look for more value in terms of discounted future cash-flow than you are paying for. Move only when you have an advantage.”

Quote by Charlie Munger

Create image

Author

Charlie Munger
Charlie Munger

Charlie Munger, born on January 1, 1924, is a distinguished business person known for his investment philosophy and partnership with Warren Buffett at Berkshire Hathaway. He has been a significant influence in the field of finance and investing, contributing to the success of the company over the years. more

You May Also Like

“In our view, though, investment students need only two well-taught courses-How to Value a Business, and How to Think about Market Prices. Your goal as an investor should simply be to purchase, at a rational price, a part interest in an easily-understandable business who's earnings are virtually certain to be materially higher five, ten and twenty years from now.”

ThinkingNeedsShouldYearsWellsTwoCertainValuesCoursesGoalInterestViewsFiveStudentsTaughtHigherTenTwentiesInvestmentInvestingRationalInsightfulInvestorsEarning
Book:Warren Buffett on Business: Principles from the Sage of Omaha
Create image

“We believe that almost all really good investment records will involve relatively little diversification. The basic idea that it was hard to find good investments and that you wanted to be in good investments, and therefore, you'd just find a few of them that you knew a lot about and concentrate on those seemed to me such an obviously good idea. And indeed, it's proven to be an obviously good idea. Yet 98% of the investing world doesn't follow it. That's been good for us.”

WorldBelieveLittlesIdeasHardWantedValuesRecordsInvestmentInvestingInsightfulGood IdeasProvenDiversification
Author:Charlie Munger
Create image

“An argument is made that there are just too many question marks about the near future; wouldn't it be better to wait until things clear up a bit? You know the prose: "Maintain buying reserves until current uncertainties are resolved," etc. Before reaching for that crutch, face up to two unpleasant facts: The future is never clear and you pay a very high price for a cheery consensus. Uncertainty actually is the friend of the buyer of long-term values.”

KnowsLongMadeTwoFactsFacesValuesBitsWaitingTermPayClearArgumentMarkInvestingCurrentsUncertaintyLong TermProseBuyingReachingEtcInsightfulReservesConsensusBuyersCrutchesHigh PricesQuestion Mark
Author:Warren Buffett
Create image