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Approach Quote by Charlie Munger

“If you buy something because it's undervalued, then you have to think about selling it when it approaches your calculation of its intrinsic value. That's hard. But if you buy a few great companies, then you can sit on your ass. That's a good thing.” quote by Charlie Munger
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“If you buy something because it's undervalued, then you have to think about selling it when it approaches your calculation of its intrinsic value. That's hard. But if you buy a few great companies, then you can sit on your ass. That's a good thing.”

Charlie Munger

About This Quote

Source Speech: Berkshire Hathaway Annual Meeting, 2018

Buying undervalued assets requires timing exits, while owning great companies allows passive, long‑term wealth building.

In simple terms: Buy cheap, sell when value rises; own great firms for passive gains.

Key Takeaway

Focus on quality holdings for long‑term ease.

Themes

investment patience value investing

Mood

thoughtful pragmatic

Type

educational strategic

When to use this quote

  • stock selection
  • retirement planning
  • wealth accumulation

Key Concepts

intrinsic value portfolio management

Questions to Reflect On

  • How do you assess intrinsic value?
  • What makes a company “great” for passive ownership?
A Different Perspective

Market timing is uncertain and can erode returns.

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