Warren Buffett & Charlie Munger: Margin of Safety

Warren Buffett and Charlie Munger discuss the idea of a margin of safety. From the 2007 Berkshire Hathaway annual meeting.

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[Je.rone_]

*i like to think of margin of safety like driving.*

You want to keep a safe following distant between you and the car in front of you (and behind you). Cause if something unexpected happens you may avoid or diminish the impact such an event.

[InvestingEducation]

Margin of safety and Moat are the 2 most impt investing concepts for me

[Crookqt]

"Past is only useful to you to an extent to which it gives you insights into the future"

[whatsupdanger]

I love Charlie Munger. He’s such a genius. But he’s hilarious to watch when he’s just sitting there while Warren speaks. He eats some chocolate. Blinks a couple times. Looks around the room. Crosses his arms.

[candyfloss]

High ROCE for a very long time and good ethical manager. Question:- 01:57 Buffett says he would like to identify these kind of opportunities when they are selling for 40 cents but would like to buy them when they are selling near a dollar. Why ? Ans:- 03:12 you don’t need a huge margin of safety

[ReflectionOcean]

- Focus on deeply understanding businesses before investing (0:49)

- Invest in businesses with a high return on capital and trustworthy management (1:39)

"... you only get paid for what's going to happen in the future the past is only useful to you and the extent to which it gives you insights into the future and sometimes the past doesn't give you any insights into the future and in other cases like the stable business that you you postulated it probably ..." (2:48)

- Recognize value in various forms, not just discounted price (3:50)

[jroig]

I see Buffett has changed his view throughout the years. On a conference many years ago he said that you dont have to be very precise estimating the fair value of a company, as long as you make sure to buy it at a great margin of safety.

[rexgordon]

Somebody needs to teach this to TSLA “investors.”

[Andygb]

I think sees candy is Warren's favourite. He always seems to bring it up in these seminars.

[MichaelEngeldinger]

Mr buff-it, wood you agree the best time to buy out small mom and pops is during a recession? And why wouldn’t you at your age just use your vast wealth to help keep the owner in business and still in possession of his fine company, and yes sometimes the CEO is the problem, right Warren lol😊

[guedesricsfca]

It’s high school algebra and if you don’t know high school algebra you should take other activities. Hahahahaha

[jhonnysmithsonian]

Buffet is so old and active because all of his decisions are made on the long term.

[ralphadamo]

The reality is that if Buffett and Munger had to start over today, they wouldn't amount to anything. That's because their investing "philosophy" is pure BS. They got lucky early in their careers and they charged exorbitant fees for managing money. They couldn't get away with that BS today. The reality is if these two started anew, they would be lucky to emerge with $1.5 million after 7 years.

[juancilliers]

Bunch of suits sitting there slithering like lizards... what a game it is to just gather everything you can, just before you die, so you can say,
"$^%% you all, I'm the best, I did it to you, you're poor because I took it all, remember me