"I finally figured out why the teachers of corporate finance often teach a lot of stuff that’s wrong. When I had some eye trouble very early in life, I consulted a very famous eye doctor and I realized that his place of business was doing a totally obsolete cataract operation. They were still cutting with a knife with better procedures and I said why are you in the great medical school performing absolute obsolete operations. He said it’s such a wonderful operation to teach. Well that’s what happens in corporate finance, they get these formulas and it’s fine teaching experience. You are given a formula, you are presented with a problem, you apply the formula, you get a real feeling of worthwhile activity. There is only on problem, it’s all balderdash. - Charlie Munger, Berkshire Hathaway: Annual Shareholders Meeting (2018).
They are specialized. Google owns the search engine market but loses to other things , which is their plan by the way to avoid being targeted as a monopoly. So is Apple, they are a phone manufacturer but to avoid being regulated they say that they make so much more stuff like earphones, stands and so on.
I think Bruce makes value investing to complicated.. he is obviously extremely smart but I have found value investing much more simple than he views it.
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So nice, I watched it twice! Thanks!
Same here, had to watch it twice
Id give this guy the best conversation ever if he just wants to talk and i listen. Leaning new things every time i watch this
Thank you for this lecture i could listen to both of them for hours, looking forward to new episodes with them
Wow Bruce drops a lot of gems in here
"I finally figured out why the teachers of corporate finance often teach a lot of stuff that’s wrong.
When I had some eye trouble very early in life, I consulted a very famous eye doctor and I realized that his place of business was doing a totally obsolete cataract operation. They were still cutting with a knife with better procedures and I said why are you in the great medical school performing absolute obsolete operations. He said it’s such a wonderful operation to teach.
Well that’s what happens in corporate finance, they get these formulas and it’s fine teaching experience. You are given a formula, you are presented with a problem, you apply the formula, you get a real feeling of worthwhile activity. There is only on problem, it’s all balderdash.
- Charlie Munger, Berkshire Hathaway: Annual Shareholders Meeting (2018).
two of the best!!
It's a fantastic book for reading and as a reference, well done guys
Chapter 8 is a difficult chapter to put into practice.
@@johnchew503 The appendix was very difficult to understand. Gonna have to reread it a few times to fully understand it. Still gold though.
This is awesome, like it a lot
Thanks for the Book
Is this book difficult to understand for beginners?
No it's not
Congratulations
Legend
But google is not a local market, nor Apple
They are specialized. Google owns the search engine market but loses to other things , which is their plan by the way to avoid being targeted as a monopoly. So is Apple, they are a phone manufacturer but to avoid being regulated they say that they make so much more stuff like earphones, stands and so on.
He doesn't mean geographically local...it can be but it can also be local product markets, local/niche customer segments etc...
Instalco went up over 40% since this video came out
Gorgeous
I think Bruce makes value investing to complicated.. he is obviously extremely smart but I have found value investing much more simple than he views it.
I think you are correct.
What are you taking about ? A DCF is complicated.
Very Nice, I learned a lot. Thank you Professor :) Yeah