Charlie Munger: All Intelligent Investment Is Value Investment

When asked about Berkshire Hathaway‘s core discipline Charlie Munger says, “in our way of thinking, all intelligent investment is value investment.”

All Intelligent Investment Is Value Investment

Charlie Munger: All Intelligent Investment Is Value Investment

Get The Full Warren Buffett Series in PDF

Get the entire 10-part series on Warren Buffett in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Q4 hedge fund letters, conference, scoops etc

Transcript

For instance the Apple investment.

But would in other words does it change the investing philosophy of Berkshire so for sure and Warren and you are known as value investors. Is that not the core discipline of Berkshire Hathaway anymore or does that not even matter.

You got to remember that in our way of thinking all intelligent investment is value investment because why would you want to buy something which wasn't worth as much as you were paying for us. And who wouldn't. Like buying something for less than it's worth. So the only difference when people talk about. Value investing you're always a value investor. Now there are various ways to look for. Value investments just as there are various places to fish and the first rule of fishing is to fish where the fish are. The first rule of value investing is to find someplace to fish for value investments where there are a lot of them. And of course it's gotten harder in the United States to find easy value investments because the world is so competitive. And that accounts for a lot of what you see in Berkshire where we buy securities like Apple we wouldn't have bought in the old days when we had more mundane things that were.

Serving us very well.

So we're just looking in different places but we're value investors and so the some people may say you invest or they mean somebody that emphasizes working capital or something meaning they should use the fish in that particular place. But I think that's all. I think it's a bad use of the language. To think that the differences between bet you investment besting and other good investing all good investing is value investing by definition. And so there are just various places to fish for value investments. And of course as the world gets tougher you have to face. In places you didn't fish before.

And so the idea with Apple then is that there is value there that's unrecognized by the market different kind of value investing. And one with which we're less familiar.

We wouldn't if we didn't think it was a good investment.




About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver