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"The whole concept of dividing it up into 'value' and 'growth' strikes me as twaddle." Charlie Munger.
Twaddle: (noun) trivial or foolish speech or writing; nonsense.
Twaddle: (noun) trivial or foolish speech or writing; nonsense.
"We’re applying Graham’s basic ideas, but now we’re trying to find undervalued GREAT companies." Charlie Munger. The ample supply of cigar butts Graham relied on disappeared decades ago. google.com/amp/s/25iq.com…
"Some people, when they say ‘value investor,’ mean somebody that emphasizes working capital or something. I can’t give a formulaic approach because I don’t use one. I mix all the factors and if the gap between value and price is not attractive then I go on to something else." CM
"Costco was a ridiculously low value, just because the competitive strength of the business was so great. I can’t reduce that to a formula for you. If you want a formula, you should go back to graduate school. They’ll give you lots of formulas that won’t work.” Charlie Munger
Graham’s value investing ≠ Fama/French’s factor Investing which is also called value investing. Value as a statistical factor (Fama/French) and value as an analytical style are fundamentally different. Munger is saying equating these two styles is twaddle. Both styles can work.
