"There is less risk in owning three easy-to-identify, wonderful businesses than there is in owning 50 well-known, big businesses.... If you find three wonderful businesses in your life, you’ll get very rich." --Warren Buffett (1996)
"If you’re right about the companies, you can hold them at pretty high values." --Charlie Munger (1996)
"We really have a great reluctance to sell businesses where we like both the business and the people. So I don’t think I’d count on seeing many sales. But if you ever attend a meeting here, and there are [holdings at] 60 or 70 times earnings, keep an eye on me.... You can really hold them at extraordinary levels if you’ve got [wonderful businesses]." --Warren Buffett (1996)
"Generally speaking, I think if you’re sure enough about a business being wonderful, it’s more important to be certain about the business being a wonderful business than it is to be certain that the price is not 10 percent too high or 5 percent too high or something of the sort." --Warren Buffett (1997)
"All intelligent investing is value investing. You have to acquire more than you really pay for, and that’s a value judgment. But you can look for more than you’re paying for in a lot of different ways. You can use filters to sift the investment universe. And if you stick with stocks that can’t possibly be wonderful to just put away in your safe deposit box for 40 years, but are underpriced, then you have to keep moving around all the time. As they get closer to what you think the real value is, you have to sell them, and then find others. And so, it’s an active kind of investing. The investing where you find a few great companies and just sit on your ass because you’ve correctly predicted the future, that is what it’s very nice to be good at." --Charlie Munger (2000)
Warren Buffett and Charlie Munger on diversification (video excerpt from the 1996 Berkshire Hathaway Annual Meeting) (LINK)
Related previous post: Charlie Munger on diversification
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The BuzzFeed Lesson - by Ben Thompson (LINK)
Greenhaven Road Capital's Q4 Letter (LINK)
Horizon Kinetics Q4 Commentary [H/T @chriswmayer] (LINK) [There are also a bunch more Q4 investor letters posted HERE.]
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Patrick Collison, co-founder and CEO of Stripe, on EconTalk (podcast) (LINK)
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