The Daily Buffett

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The Art of Intrinsic Value

November 2nd

In the 54 years (Charlie Munger and I) have worked together, we have never forgone an attractive purchase because of the macro or political environment, or the views of other people. In fact, these subjects never come up when we make decisions.

Warren Buffett

Investing is often viewed as a battleground of predictions and reactions to the constantly changing macro or political environment, or conforming to the views of others. However, success in investing is not a product of the acclamation of the crowd or the short-lived triumph of riding the current wave. Instead, it is the quiet evaluation, the calculated decision, the choice that may not make immediate waves, but slowly and steadily builds a strong portfolio.

The fixation on external conditions is a perilous pursuit, tempting us with immediate gains but often leading to instability. It diverts our focus from the true art of investing: uncovering and understanding the intrinsic value of a potential acquisition. Rather than being blown by the winds of external circumstances, we must anchor ourselves in the firm soil of analysis and studied comprehension.

Likewise, the power of a partnership cannot be underestimated. It shapes our decisions, making them more balanced, resolute, and ultimately successful. With shared principles and vision, we can weather the storm of external factors and remain focused on the merits of the investment itself. It's not about being unfazed by the world, but about refusing to let it dictate our decisions.

Investing, at its core, is about recognizing the value where others do not, about making decisions that align with our long-term vision rather than the short-term trends. Therein lies the true essence of successful investing.

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