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