#1
Pay Fair for Quality
"A great business at a fair price is superior to a fair business at a great price. The first $100 million was hard, after that it was inevitable."
Quality deserves a fair price.
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Charlie Munger⚖️ Value Assessment
Charlie Munger's Value Assessment Rules
Charles Thomas Munger (January 1, 1924 – November 28, 2023) was an American businessman, investor, and philanthropist. He served as vice chairman of Berkshire Hathaway and was Warren Buffett's closest partner for over five decades. Munger was renowned for his multidisciplinary approach to investing, advocating for the use of mental models from various fields including psychology, economics, physics, and biology....
3 principles·Value Assessment
3 Key Value Assessment Principles
#2
Opportunity Cost Valuation
"The whole trick of investing is to find a good business with a good management team at a fair price. Then leave it alone for a long time."
Compare every investment to your best available alternative.
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Fair Price for Wonderful Business
"A great business at a fair price is superior to a fair business at a great price."
Pay a fair price for an exceptional business rather than a bargain price for an ordinary one.
Read Full Analysis →Frequently Asked Questions
What are Charlie Munger's key value assessment principles?
Charlie Munger has 3 key principles on value assessment. The most important one is "Pay Fair for Quality" — A great business at a fair price is superior to a fair business at a great price.
How does Charlie Munger apply value assessment in practice?
Charlie Munger applies value assessment through several key principles including "Pay Fair for Quality" and "Opportunity Cost Valuation". These principles guide practical investment decisions and have been tested across decades of market cycles.
What makes Charlie Munger's approach to value assessment unique?
Charlie Munger's approach to value assessment is distinguished by a focus on long-term thinking and fundamental analysis. With 3 specific principles in this area, Charlie Munger provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.
