Calamity Quote by Charlie Munger
![“We bought a doomed textile mill [Berkshire Hathaway] and a California S&L [Savings & Loan; Wesco] just before a calamity. Both were bought at a discount to liquidation value.” quote by Charlie Munger](https://sms4smile.com/quotes/img-quotes/802/charlie-munger-458_calamity_we-bought-a-doomed-textile-mill-berkshir_858385.jpg)
“We bought a doomed textile mill [Berkshire Hathaway] and a California S&L [Savings & Loan; Wesco] just before a calamity. Both were bought at a discount to liquidation value.”
About This Quote
Source Letter: Berkshire Hathaway Annual Shareholder Letter, 1995
Munger describes buying distressed assets at prices below their liquidation value, turning risk into opportunity.
In simple terms: Buy cheap, sell later.
Key Takeaway
Seek undervalued assets.
Themes
investment
risk management
value investing
Mood
cautious
analytical
Type
financial
strategic
When to use this quote
- real estate downturn
- bank failures
- corporate restructurings
Key Concepts
discount investing
margin of safety
Questions to Reflect On
- Can you identify current assets priced below liquidation?
- How long will you wait for recovery?
A Different Perspective
Assumes ability to hold assets until market recovers.
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![“It is way less certain to be a wonderful business in the future. The threat is alternative mediums of information. Every newspaper is scrambling to parlay their existing advantage into dominance on the Internet. But it is way less sure [that this will occur] than the certainty 20 years ago that…” quote by Charlie Munger](https://sms4smile.com/quotes/img-quotes/8d0/charlie-munger-458_advantage_it-is-way-less-certain-to-be-a-wonderful_59627.jpg)
