We’ll continue today with my summary of Berkshire’s annual meeting, and the most important things an investor should remember and learn from Warren Buffett and Charlie Munger.
If You Want A Formula, You Should Go Back To School
On a question seeking a mathematical explanation of how to pick stocks, Munger said that investing cannot be put into a formula because they are always wrong. As always, investing is about commons sense.
For Munger, Costco at a PE of 12 was simply extremely cheap even if the price to book was around 3. This leads to another interesting topic about asset light businesses.