valueandprices
Charlie Munger

Mental Models and Techniques

So let’s briefly review what kind of models and techniques constitute this basic knowledge that everybody has to have before they proceed to being really good at a narrow art like stock picking. First there’s mathematics. Obviously, you’ve got to be able to handle numbers and quantities—basic arithmetic. And the great useful model, after compound […]

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Charlie Munger

Duty of Management is to “Widen” the Moat:

“So you do get an occasional opportunity to get into a wonderful business that’s being run by a wonderful manager.  And, of course, that’s hog heaven day.  If you don’t load up when you get those opportunities, it’s a big mistake.  … Averaged out, betting on the quality of business is better than betting on […]

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Charlie Munger

Components of a Moat: ( Competitive Advantage)

Charlie describes a moat in three different ways immediately below, each emphasizing the importance of the moat being able to maintain itself over time. “We have to have a business with some inherent characteristics that give it a durable competitive advantage.”   “The number one idea is to view a stock as an ownership of the […]