[Transcript]
CHARLIE MUNGER: Well, he’d (Warren Buffett) made so much money for so long doing what he’d been taught by Ben Graham, which was to buy these very cheap stocks, and if they were cheap enough he didn’t care if it was a lousy company and a lousy management. He knew he was gonna make money anyway just because of the cheapness.
And I always knew that would be self-limiting, that would only be available for a while and then would go away, and that it would be easier to make money by getting into the great businesses that either had a great manager or businesses where a fool could run it and still prosper.
And so, I don’t think I did anything maybe cause Warren to go where he was gonna go anyway a little faster. I don’t think I changed him, I think he would have been there anyway.
There was more potential for the long pole than getting in the good companies. We both wanted them cheap, but cheap good companies was the field that we shifted to. And of course that was really important when we started to buy whole companies.
Source: https://youtu.be/F6s2HAzMeL0?si=4K5VrYDekx8W07Z3
[YAPSS Takeaway]
“It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” ~Warren Buffett