At the 2019 Daily Journal Annual Meeting
Someone asked Charlie Munger this question:
"How do you think about downside protection and how do you know when to exit an investment?"
Charlie's answer:
Someone asked Charlie Munger this question:
"How do you think about downside protection and how do you know when to exit an investment?"
Charlie's answer:
"Well you’re not talking to a great exiter.
My Berkshire stock I bought it in 1966.
I’ve been a good picker. But other people know more about exiting than me.
I’m trying never to have to exit...
My Berkshire stock I bought it in 1966.
I’ve been a good picker. But other people know more about exiting than me.
I’m trying never to have to exit...
I think there are working styles of investments that work well with constant exits.
It just hasn’t happened been my forte.
So I’m no good at exits.
I don’t like even looking for exits. I’m looking for holds.
It just hasn’t happened been my forte.
So I’m no good at exits.
I don’t like even looking for exits. I’m looking for holds.
Think of the pleasure I’ve got from watching Costco march ahead.
Such an utter meritocracy and it does so well.
Why would I trade that experience for a series of transactions that only make me a little?
Such an utter meritocracy and it does so well.
Why would I trade that experience for a series of transactions that only make me a little?
It’s also a much more satisfactory life rooting for people I like and admire.
So I say find Costco’s, not good exits."
So I say find Costco’s, not good exits."
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