Value Investing

25 Pages of the Best Value Investing Quotes (PAGE WILL LOAD SLOWLY)

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 "like the stocks of both Berkshire and Wesco to trade within hailing distance of what we think of as intrinsic value. When it runs up, we try to talk it down.  That's not at all common in Corporate America, but that's the way we act."   http://www.fool.com/news/commentary/2003/commentary030509wt.htm

Investing:

“Investing is where you find a few great companies and then sit on your ass.”  Berkshire Hathaway’s 2000 Shareholder Meeting  http://www.ticonline.com/archives_quotes.html

“The investment game is getting more and more competitive.”  http://www.tilsonfunds.com/motley_berkshire_brkmtg01notes.php3

“An investment decision in the common stock of a company frequently involves a whole lot of factors interacting … the one thing that causes the most trouble is when you combine a bunch of these together, you get this lollapalooza effect.”  http://www.loschmanagement.com/Berkshire%20Hathaway/Charlie%20munger/The%20Psychology%20of%20Human%20Misjudgement.htm

“It’s not given to human beings to have such talent that they can just know everything all the time. But it is given to human beings who work hard at it – who look and sift the world for a mispriced bet – that they can occasionally find one. And the wise ones bet keenly when the world offers that opportunity. They bet big when they have the odds. And the rest of the time, they don’t. It’s just that simple.”  OID, May 5, 1995

 

“If (investing) weren’t a little difficult, everybody would be rich.”  Damn Right! Behind the Scenes with Berkshire Hathaway Billionaire Cha lie Munger, Janet Lowe John Wiley &Sons,  2003 http://www.wiley.com/WileyCDA/WileyTitle/productCd-0471446912,descCd-tableOfContents.html

To us, investing is the equivalent of going out and betting against the pari-mutuel system. We look for a horse with one chance in two of winning, and that pays three to one. In other words, we’re looking for a mispriced gamble. That’s what investing is, and you have to know enough to know whether the gamble is mispriced.”  http://72.14.203.104/search?q=cache:sVtHPKWG-bwJ:www.wedgecapital.com/documents/WW2Q05.pdf+%22Charlie+Munger%22+%22to+us,+investing+is+the+equivalent+of%22&hl=en&gl=us&ct=clnk&cd=1

Investment Banks:

“The general culture of investment banking has deteriorated over the years. We did a $6 million deal years ago for Diversified Retailing and we were rigorously and intelligently screened. They bankers cared and wanted to protect their clients. The culture now is that anything that can be sold for a profit will be. ‘Can you sell it?’ is the moral test, and that’s not an adequate test.”  http://www.tilsonfunds.com/motley_berkshire_brkmtg02notes.php3

“The interesting thing about it to me is the mindset. With all these “helpers”  running around, they talk about doing deals. We talk about welcoming partners. The  guy doing deals, he wants to do a deal and then unwind it in the near future. It’s totally opposite for us. We like to build lasting relationships. I think our system will work  better in the long term than flipping deals. I think there are so many of them [helpers] that they’ll get in ea h other’s way. I don’t  think they’ll make enough money to meet their expectations, by flipping, flipping, flipping.”  http://www.designs.valueinvestorinsight.com/bonus/bonuscontent/docs/Tilson_2006_BRK_Meeting_Notes.pdf#search=%22Charlie%20munger%20and%20foundation%20and%20croupier%22

“Warrentalked to guy at an investment bank and asked how they made their money. He said, “Off the top, off the bottom, off both sides and in the middle.” ” http://www.designs.valueinvestorinsight.com/bonus/bonuscontent/docs/Tilson_2006_BRK_Meeting_Notes.pdf#search=%22Charlie%20munger%20and%20foundation%20and%20croupier%22

IPOs

“It is entirely possible that you could use our mental models to find good IPOs to buy.  There are countless IPOs every year, and I’m sure that there are a few cinches that you could jump on.  But the average person is going to get creamed.  So if you’re talented, good luck. IPOs are too small for us, or too high tech, so we won’t understand them.  So, if Warren’s looking at them, I don’t know about it.”  http://www.tilsonfunds.com/brkmtg04notes.doc

IQ:

“A lot of people with high IQs are terrible investors because they’ve got terrible temperaments. And that is why we say that having a certain kind of temperament is more important than brains. You need to keep raw irrational emotion under control. You need patience and discipline and an ability to take losses and adversity without going crazy. You need an ability to not be driven crazy by extreme success.”  http://www.kiplinger.com/personalfinance/features/archives/2005/11/munger2.html

“A money manager with an IQ of 160 and thinks it’s 180 will kill you,” he said. “Going with a money manager with an IQ of 130 who thinks its 125 could serve you well.” http://sanfrancisco.bizjournals.com/sanfrancisco/stories/1996/10/21/newscolumn6.html

“The hedge fund known as “Long Term Capital Management” collapsed last fall through overconfidence in its highly leveraged methods, despite I.Q.’s of its principals that must have averaged 160. Smart people aren’t exempt from professional disasters from overconfidence. Often, they just run aground in the more difficult voyages they choose, relying on their self-appraisals that they have superior talents and methods.” http://72.14.203.104/search?q=cache:mgSaxC3O1IoJ:www.philanthropyroundtable.org/magazines/1999/march/munger.html+Berkshire+Hathaway%27s+vice+chairman+shreds+the+conventional+wisdom+on+foundation+investing&hl=en&gl=us&ct=clnk&cd=1

“You need to have a passionate interest in why things are happening. That cast of mind, kept over long periods, gradually improves your ability to focus on reality. If you don’t have the cast of mind, you’re destined for failure even if you have a high IQ.”  http://www.tilsonfunds.com/motley_berkshire_brkmtg02notes.php3

 

“A foreign correspondent, after talking to me for a while, once said: “You don’t seem smart enough to be so good at what you’re doing. Do you have an  explanation?”  http://www.designs.valueinvestorinsight.com/bonus/bonuscontent/docs/Tilson_2006_BRK_Meeting_Notes.pdf#search=%22Charlie%20munger%20and%20foundation%20and%20croupier%22

“When we were young, there weren’t very many smart people in the investment world. You should have seen the people in the bank trust departments.  Now, there are armies of smart people at private investment funds, etc . If there were a crisis now, there would be a lot more people with a lot of

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