Like the stocks of both Berkshire and Wesco to trade…
“Like the stocks of both Berkshire and Wesco to trade within hailing distance of what we think of as intrinsic value. When it runs up, we try to talk it down. That's not at all common in Corporate America, but that's the way we act.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Munger describes how Berkshire and Wesco stocks are kept near intrinsic value, and the firm actively pushes prices down when they rise, a rare practice in corporate America.
In simple terms: He keeps stock prices close to true worth and resists overvaluation.
Key Takeaway
Maintain disciplined valuation and resist market hype.
Themes
valuation
discipline
market behavior
Mood
analytical
critical
pragmatic
Type
business
financial
ethical
When to use this quote
- investment strategy
- corporate governance
- stock analysis
- risk management
Key Concepts
intrinsic value
price manipulation
shareholder activism
Questions to Reflect On
- How do you ensure price reflects intrinsic value?
- What risks arise from actively correcting market prices?
A Different Perspective
Such intervention can be costly and may conflict with short‑term profit motives.