Charlie Munger

Being Cheap, Best of Munger, a Rare Bezos Interview, and Other Links

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I was catching up on some links and articles this weekend. Sometimes, things that are interesting but not time sensitive get pushed to the back burner. In these cases, I sometimes create a file filled with things that I’d like to read and the early morning Saturday hours are sometimes a good time to catch up on these things. Anyhow, here are some things I’ve read recently that I read that I thought readers might be interested in taking a […]

Case Studies

Sears and Seven-Foot Hurdles

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A few weeks back I came across an article that someone had posted on Sears. It is a fascinating read for a few different reasons. One, I think Sears is an excellent case study of the retail industry and the difficulties of investing and allocating capital in that type of business, and two, the article was written in the summer of 1988. This post is not a prediction of the demise of Sears, or an indictment against those who find value […]

Ben Graham

The Simple Concept of Intrinsic Value

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“The newer approach to security analysis attempts to value a common stock independently of its market price. If the value found is substantially above or below the current price, the analyst concludes that the issue should be bought or disposed of. This independent value has a variety of names, the most familiar of which is “intrinsic value”. – Ben Graham, Security Analysis (1951 Edition) Graham went on to say this about the definition of intrinsic value: “A general definition of intrinsic […]