Though Warren Buffett popularized the idea of the moat, he credits partner Charlie Munger for bringing him around to the idea that "it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."
A quality strategy is a bet that the market doesn't appreciate wonderful companies enough, particularly their earnings potential many years out.
As Charlie Munger said, "If a business earns 18% on capital over 20 or 30 years, even if you pay an expensive looking price, you'll end up with one hell of a result."
(Of course, it's not easy to identify in advance firms that can sustain such high rates of return for so long.)
http://news.morningstar.com/articlenet/article.aspx?id=643125&SR=Yahoo
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