One of our favourite quotes that describes the essence of investing has been said by Charlie Munger. He says, "Investing is simple but not easy." Don't let those words fool you. They carry more weight than you might realise.
How is investing simple? It is simple because you know what you have to do. You have to find good businesses and invest for the long haul.
Then, why is it not easy? That's because most investors fail to do so. Investors struggle to identify a good business and when they do, it may be too late. Besides, if you want to stay invested in a company for a long period of time (such as 10 or 20 years), you need to exhibit immense patience and temperament. There are highs and there are lows. Traversing through these is fickle.
So, we thought we should help our readers become better investors. Thus, this cover story is all about the art of stock-picking the Berkshire way. Fortunately, Charlie Munger had given the secret sauce in a talk he gave in 1994.
In the book, 'Poor Charlie's Almanack: The Wit and Wisdom of Charles T. Munger', there are transcripts of various speeches/talks given by Munger. We have considered a talk he gave to the students at the University of Southern California Marshall School of Business in April 1994. It is about the art of stock-picking as a subdivision of the art of worldly wisdom. However, for our purposes, we have only considered the part related to stock-picking.
Munger, in his talk, outlines what it takes to be a successful stock picker. We have structured the story based on various points he made in his talk. You might get the answers to the following questions:
هذه القصة مأخوذة من طبعة January 2023 من Wealth Insight.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة January 2023 من Wealth Insight.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
Bad ideas, F&O trading and the market
Find out the mindset required to find success in F&O trading
Licence Raj Redux?
The import policy changes might take us back to the days of License Raj
How to do magic
Getting great equity returns sustainably only looks like magic, it actually isn't
Data protection and cyber security
The increasing need for cyber security is opening up investment opportunities
"Buying is dependent on pricing but not on timing"
Insights of a fund manager at PPFAS Mutual Fund
Pro vs Amateur
Can amateur stock investors be better than pros? Yes! Here's how
The dimming of Brightcom
Shedding light on irregularities at the Brightcom Group
First tryst with profitability
Find out if food aggregators have found a cure to their loss-making curse
Have We Crossed The Peak Of Inflation?
Find out if the present macro scenario calls for tweaking your portfolio strategy
Tomatonomics
The humour, the stories and what could have been done about tomato inflation