In 2012 Robert Novy-Marx wrote the paper The Other Side of Value:The Gross Profitability Premium. You could say that it is an attempt to test the hypothesis of Charles Munger and Warren Buffett that it’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price. The Gross … Continue reading The Profitability Factor
Tag: Munger
Profile: Charles Munger
http://youtu.be/pqzcCfUglws I probably don’t enjoy anything as much as reading Charles Munger, but this is my absolute favorite piece of Munger-material (link to the whole speech): "The model I like—to sort of simplify the notion of what goes on in a market for common stocks—is the pari-mutuel system at the racetrack. If you stop to … Continue reading Profile: Charles Munger
Munger on Walton and his strategy
I’ve read this speech a number of times now. I find it particularly useful when I’ve read too much nonsense and feel the need to reboot my thinking. Here’s Munger on Sam Walton and his early strategy with Walmart: On the subject of advantages of economies of scale, I find chain stores quite interesting. Just … Continue reading Munger on Walton and his strategy
A Munger must-read
This is a transcript from a speech that Charles Munger of Berkshire did at USC Business School, 1994. A great read. If you don't get this elementary, but mildly unnatural, mathematics of elementary probability into your repertoire, then you go through a long life like a onelegged man in an asskicking contest. You're giving a … Continue reading A Munger must-read