In the recent Berkshire AGM, one investor asked the two wise gentlemen about the future of value investing.
Interestingly, both of them disagree with each other.
Charlie Munger, Berkshire Hathaway vice-chairman and Buffett’s long-time right-hand man, has a more pessimistic view on value investing.
“I think value investors are going to have a harder time now that there are so many of them competing for a diminished bunch of opportunities,” Munger said. “My advice to value investors is to get used to making less money.”
On the other hand, Buffett sees more opportunities than his long-time partner.
“What gives you opportunities is other people doing dumb things,” he said. “And there has been a great increase in people doing dumb things.”
Buffett’s thinking is aligned with his investing mentor Benjamin Graham, the father of value investing.
Benjamin Graham once said, “Though business conditions may change, corporations and securities may change, and financial institutions and regulations may change, human nature remains the same. Thus, the important and difficult part of sound investment, which hinges upon the investor’s own temperament and attitude, is not much affected by the passing years.” — from The Intelligent Investor
Whose thinking do you agree with more? 😃
In our opinion, we believe Buffett’s view on human nature will stand the test of time.
Think about it:
How many times have you bought a stock due to greed or FOMO, only to see the stock price tumbling down?
How many times have you sold a stock in a market crash out of fear, only to see it recovering soon after?
How many times have you felt lost or paralyzed by your emotions, too afraid to take any action due to market uncertainty?
Emotions are real, and they will always be a part of us.
That's also why, in the Buffett Online School, we believe in learning the right investing mindset and system, so we can start cultivating emotional detachment and grow our wealth safely and substantially in the long run.
Join Our Free 2-Day BOS Value Investing MBA
At the Buffett Online School, we believe in learning the right investing mindset and system, so we can start cultivating emotional detachment and grow our wealth safely and substantially in the long run.
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Remember, you have the choice to cultivate the right investing mindset and unlock your potential to build wealth through intelligent investing. Together, we can create a network of educated investors who make informed decisions and contribute to their financial well-being!
In the meantime, feel free to check out some of our blog posts to continue your learning. You can also join our BOS Telegram channel for more investing insights.
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