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I’m re-reading “Damn Right! Behind the Scenes with Berkshire Hathaway Billionaire Charlie Munger” by Janet Lowe and came across a passage that illustrates exactly the sort of thing I’m talking about when I harp on acquiring assets that constantly churn out piles of cash for you spend, redeploy into new investments, give to charity, or…
At 31 years old, Charlie Munger was divorced, broke, and burying his 9 year old son, who had died from cancer. By the time he was 69 years old, he had become one of the richest 400 people in the world, been married to his second wife for 35+ years, had eight wonderful children, countless…
The Graham-Newman Corporation was a stock company that essentially served as a hedge fund through which legendary investor Benjamin Graham managed money for his shareholders. It is the same firm where Warren Buffett worked in his twenties before moving back to Omaha and establishing the original seven partnerships upon which his fortune is based. According…
I’ve written about Walter Schloss and his value investing philosophy in the past. Tonight, I’m thinking about the lessons someone can glean from studying his career. [mainbodyad]Alice Schroeder tells us on page 852, in the notes of The Snowball, that in 1951, Walter Schloss was making less than the average secretary working for Benjamin Graham…
I’ve been thinking a lot lately about Buffett Associates, Ltd., which is the most famous and first “real” professional investment partnership that Warren Buffett established on May 1st, 1956 after he returned to Omaha following his time working for Benjamin Graham at the Graham-Newman Corporation. He was 25 at the time (would turn 26 that…
You all know that Peter Lynch was the first investor that made the stock market make sense to me during childhood. He is one of the greatest investors of all time, having compounded the mutual fund he ran for 13 years at 20%+ annually, generating an absolute return of more than 1,000% for his…
Voltaire led a life that is extraordinarily useful for those who want an example of how to contribute to the improvement of civilization, live extremely well, and follow your passion.
John Templeton was a billionaire mutual fund pioneer that specialized in using a value investing strategy to buy stocks around the world. By practicing a disciplined version of Benjamin Graham’s teaching on a global scale, Templeton amassed an astounding record that made shareholders of his fund wealthy and earned him hundreds of millions of dollars in well-deserved fees. Toward the end of his life, John Templeton ran his international investments from his mansion on Lyford Clay in the Bahamas.
Originally serving as stock broker to the father of value investing, Benjamin Graham, Tweedy, Browne & Company converted to a money management company and eventually launched several highly successful mutual funds that operated with the same value investing style for which they had become renowned. After beating the market by several percentage points for nearly forty years, the firm’s place in the halls of investing greats has been securely established.
Charlie Munger, the Vice Chairman of Berkshire Hathaway, former hedge fund manager, and billionaire value investor, was instrumental in changing Warren Buffett’s way of thinking about value investing. Charlie insisted that the investor would be better served by focusing on better quality businesses, even if the price were higher, because those businesses could be held for decades, continually churning out cash and profits for the owners. In fact, it was this influence that resulted in Berkshire Hathaway shifting from acquiring undervalued “cigar butt” companies such the textile mills for which the firm was named to high-quality companies such as Coca-Cola.
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