In one sentence: A rerun of 164 from 2018, aired two weeks after Munger's death. The conversation is the same, so read 164 for the content.
Key ideas
- Same conversation as 164. Graham-style cheap, diversified "value investing" versus the Buffett-Munger style, then Munger's three ways to build a portfolio: clone great investors, buy companies that retire their own shares, and buy spin-offs. [01:00–27:30]
- Nothing new in substance. The episode is the original, with no new framing by the hosts beyond its placement after Munger's death. Its figures (Apple and IBM buybacks, Fiat Chrysler and Ferrari, Value Line's cost) are Phil's and date from 2018, so check them before relying on them. [00:00–38:00]
- Same closing. Apprenticeship as the way investing knowledge is passed on, and Danielle's newsletter. [30:00–38:00]
How it maps to RuleOne
See 164.
Buffett, Munger and Graham links
See 164.
Words to know
- Spin-off: a company gives its shareholders shares in a division that becomes a separate public company.
- Net-net: a stock priced below current assets minus all liabilities (Graham).
Try this
Pick a stock from /stocks/ and compare its share count with ten years ago. Is management shrinking it or diluting it?
Check yourself
- What is new in this rerun?
Answer
Nothing of substance. It is episode 164 rerun in December 2023. - What are Munger's three ways, as Phil relays them?
Answer
Clone great investors, buy companies that buy back their own shares, and buy spin-offs.
Short quotes
None.