Entity Dossier
entity
WESCO
Strategic Concepts & Mechanics
Risk DoctrineConsistently Not Stupid Beats Brilliant
Signature MoveIntrinsic Value Through Cash Flow Not Momentum
Signature MoveStock as Business Ownership Not Ticker Symbol
Cornerstone MoveMr. Market as Servant Not Master
Strategic PatternFree Cash Flow as Valuation Bedrock
Operating PrincipleBottom-Up Only Valuation
Signature MoveIndependent Thought Over Herd Regression
Operating PrincipleSimplicity as Performance Advantage
Cornerstone MoveBuy at One-Third of Sellout Value Then Wait
Signature MoveShort-Term Predictions in the Too-Hard Pile
Cornerstone MoveMargin of Safety Renders Prediction Unnecessary
Decision FrameworkChecklist Before Commitment
Decision FrameworkPrice Versus Value Discipline
Risk DoctrineProjections as Dressed-Up Delusion
Primary Evidence
"The idea of a margin of safety, a Graham precept, will never be obsolete. —CHARLIE MUNGER, WESCO ANNUAL MEETING, 2003 No matter how wonderful [a business] is, it’s not worth an infinite price. We have to have a price that makes sense and gives a margin of safety considering the normal vicissitudes of life. —CHARLIE MUNGER, BBC"
Source:Charlie Munger