I'm not sure if Munger will live to 1000, but I hope he does, his dry attitude never gets old.
What are the things that Munger considers twaddle?
Here's my list so far:
- EBITDA.
- Modern portfolio theory.
- Projecting cost of capital (I guess that includes WACC?).
- Crypto.
- Derivative investments like options (not sure if he's zero tolerance on them, doesn't Warren use them from time to time?).
- Basically everything that gets taught in business school, which I didn't go to so I don't know what that really means, but I take that as he thinks the math and academia is an echo chamber that's too far detached from reality.
- Magic formulas, same as the last point I suppose, "he can't give you a formula because he doesn't use one" (source: https://www.youtube.com/watch?v=FNGev2EvUQk).
What he doesn't think is twaddle (correct me if I'm wrong):
- Some simple use of multiples, like noting the price-to-book value and P/E.
- Competitive advantages, such as moats, and companies with good ground work for long term moat potential.
- Basing his decisions on a balance of no nonsense fundamental value and competitive advantage prospects.
- DCF? I'm not sure about his opinions on "vanilla" DCF vs. a modified version of it.
UwU UwU, she's so quirky, DAE she got 10k of those after she was announced for the l'DubZ tournament?!? I know, because I check her followers numbers all the time UwU it's not creepy to keep tabs on her followers! She's my quirky waifu!
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