Charlie Munger Admired Bezos And Musk, But Passed On Amazon, Tesla At First: 'You Have To Let Ideas Die'
Portfolio Pulse from Adam Eckert
Charlie Munger, the late vice chairman of Berkshire Hathaway, learned from the See's Candies acquisition that paying full price for a beloved brand can be a bargain. This shaped his and Warren Buffett's investment strategy, focusing on companies with fair prices and loyal customers. They initially passed on Amazon and Tesla, considering them too risky despite admiring their founders. However, they later invested in Apple, which became a significant part of Berkshire's portfolio. Munger passed away at 99, leaving behind a legacy of value investing.
December 07, 2023 | 5:49 pm
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Apple represents about 50% of Berkshire Hathaway's portfolio, and Munger's wish that they had bought more highlights its importance to the firm.
While the article discusses Munger's regret of not buying more Apple stock, it does not suggest any immediate financial impact on Apple's stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Amazon was initially passed over by Berkshire due to perceived risks, but its subsequent performance has been outstanding.
The article mentions Amazon as a missed opportunity for Berkshire, but there is no direct short-term impact on Amazon's stock from this retrospective insight.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Berkshire Hathaway's investment strategy, influenced by Munger's lessons from See's Candies, has been successful, with Apple being a key holding.
The article reflects on Munger's investment philosophy and its impact on Berkshire's strategy, which is unlikely to change in the short term due to his passing.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Berkshire Hathaway's investment strategy, influenced by Munger's lessons from See's Candies, has been successful, with Apple being a key holding.
The article reflects on Munger's investment philosophy and its impact on Berkshire's strategy, which is unlikely to change in the short term due to his passing.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Tesla, once considered too risky by Munger, has achieved high average annual returns since its IPO.
The article mentions Tesla as a missed opportunity for Berkshire, but there is no direct short-term impact on Tesla's stock from this retrospective insight.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50