Entity Dossier
Organization
USC Business School
Strategic Concepts & Mechanics
Risk DoctrineConsistently Not Stupid Beats BrilliantSignature MoveIntrinsic Value Through Cash Flow Not MomentumSignature MoveStock as Business Ownership Not Ticker SymbolCornerstone MoveMr. Market as Servant Not MasterStrategic PatternFree Cash Flow as Valuation BedrockOperating PrincipleBottom-Up Only ValuationSignature MoveIndependent Thought Over Herd RegressionOperating PrincipleSimplicity as Performance AdvantageCornerstone MoveBuy at One-Third of Sellout Value Then WaitSignature MoveShort-Term Predictions in the Too-Hard PileCornerstone MoveMargin of Safety Renders Prediction UnnecessaryDecision FrameworkChecklist Before CommitmentDecision FrameworkPrice Versus Value DisciplineRisk DoctrineProjections as Dressed-Up Delusion
Primary Evidence
"Ben Graham [had] his concept of “Mr. Market.” Instead of thinking the market was efficient, he treated it as a manic-depressive who comes by every day. And some days he says, “I’ll sell you some of my interest for way less than you think it is worth.” And other days, “Mr. Market” comes by and says, “I’ll buy your interest at a price that’s way higher than you think its worth.” —CHARLIE MUNGER, USC BUSINESS SCHOOL, 1994"
Source:Charlie Munger