tag:blogger.com,1999:blog-7366878066073177705.post8784177976585275760..comments2024-02-09T18:16:45.614+00:00Comments on The Psy-Fi Blog: Buffett and Munger on the BBCtimarrhttp://www.blogger.com/profile/06254802085744425067noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7366878066073177705.post-75523502330175909532009-10-28T14:10:22.702+00:002009-10-28T14:10:22.702+00:00You are focusing on the right thing if you look at...<i>You are focusing on the right thing if you look at the stream of income that an asset is going to produce over time.</i><br /><br />If this is so (it is), then Passive Investing makes no sense. The stream of income is obviously not the same when stocks are priced at three times fair value as it is when stocks are priced at one-half of fair value.<br /><br />Buffett of course gets this. But he has on numerous occasions given his "okay" to the continued promotion of Passive Investing by numerous investing "experts." He's a genius. But he failed us big-time re this one, in my assessment. No one's perfect.<br /><br />RobRob Bennetthttp://arichlife.passionsaving.comnoreply@blogger.comtag:blogger.com,1999:blog-7366878066073177705.post-38067513346027484732009-10-28T13:01:07.450+00:002009-10-28T13:01:07.450+00:00Thanks to Alex Bossert for this: Charlie Munger me...Thanks to Alex Bossert for this: Charlie Munger mentions the "four filters" at around the 6 min mark during an interview: http://news.bbc.co.uk/2/hi/business/8326369.stm<br /><br />"The Four Filters Invention of Warren Buffett and Charlie Munger" examines each of the basic steps they perform in "framing and making" an investment decision. This book is a focused look into this amazing invention within "Behavioral Finance." The genius of Buffett and Munger's four filters process was to "capture all the important stakeholders" in a "multi-variable" equation or formula. Imagine...Products, Enduring Customers, Managers, and Margin-of-Safety... all in one mixed "qual + quant" formula. http://www.amazon.com/dp/0615241298<br /><br />Other important ideas are embedded in each chapter. The book can be used as a supplemental textbook in a Valuation or Decision Sciences course.Budhttp://www.amazon.com/dp/0615241298noreply@blogger.com