The Dutch Investors #66 | Lesson from Charlie Munger and Warren Buffett on value investing | Superinvestors Ep. 1
Nov 19, 2025
Discover the insights from investing legends Warren Buffett and Charlie Munger. They define value investing as a quest for future cash flows that outweigh today's costs. Learn about the balance between growth and value, and the importance of patience and temperament in avoiding mistakes. Explore Buffett's famous checklist for selecting businesses and the fascinating reasons behind his investment in Apple. The conversation emphasizes that value investing principles apply universally, regardless of stock prices.
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All Investing Is Value Investing
- Warren Buffett and Charlie Munger define investing as getting more cash later than you pay today, measured against interest rates and timing.
- They argue all intelligent investing is value investing because growth is merely a component of value.
Growth Can Destroy Value
- Growth only creates value if the capital invested yields returns well above prevailing interest rates.
- High-growth businesses that consume lots of capital can destroy value despite rising revenues.
Stick To Simple Valuation Skills
- Avoid overreliance on complex math or fashionable models like modern portfolio theory when valuing businesses.
- Learn to value a business and think about markets instead of chasing technical theories and option pricing tricks.
