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.”
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.
Focus on quality holdings for long‑term ease.
Themes
Mood
Type
When to use this quote
- stock selection
- retirement planning
- wealth accumulation
Key Concepts
Questions to Reflect On
- How do you assess intrinsic value?
- What makes a company “great” for passive ownership?
Market timing is uncertain and can erode returns.