S&P 500

Grant's Conference: Jim Grant On The S&P 500 Great Debate

Grant’s Conference: S&P 500 – The Great Debate

“The market,” a.k.a. the S&P 500, comprises:

  • 99 stocks with a short interest over 5%,
  • 149 stocks with a P/E ratio over 25 times — or no P/E ratio

“Executions don’t kill. Research kills.” – Alan Abelson

S&P 500

“I think it is roughly right that the market is efficient, which makes it very hard to beat merely by being an intelligent investor. But I don’t think it’s totally efficient at all.” – Charlie Munger

S&P 500

Diversification: Can there be too much of a good thing?

“There is one thing of which I can assure you. If good performance of the fund is even a minor objective, any portfolio encompassing 100 stocks (whether the manager is handling $1,000 or $1 billion) is not being operated logically.” – 1966 Buffett Partnership Letter

“Over time, our policy of concentration should produce superior results. . . . ” – 1984 Berkshire Hathaway Letter

“If my universe of business possibilities were limited, say, to private companies in Omaha, I would, first, try to assess the long-term economic characteristics of each business; second, assess the quality of the people in charge of running it; and, third, try to buy a few of the best operations at a sensible price. I certainly would not wish to own an equal part of every business in town.” – 1991 Berkshire Hathaway Letter

“Once you are in the business of evaluating businesses, and you decide that you are going to bring the effort and intensity and time involved to get that job done, then I think diversification is a terrible mistake to any degree. . . . If you really know businesses, you shouldn’t own more than six of them.” – Buffett lecture at the University of Florida School of Business, Oct. 15, 1998

S&P 500

“I’m convinced that everything that’s important in investing is counterintuitive, and everything that’s obvious is wrong.” – Charlie Munger, quoted in Howard Marks’s “Dare to be Great II,” April 8, 2014

See full PDF below.

Comments (0)


Saved Articles

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

Congrats! Are you a smart person?

We have an exclusive targeted for being a sophisticated and loyal reader.

Welcome in the new year by signing up up for ValueWalkPremium today and get our exclusive content for 40% off. This is our second biggest discount ever!!

Use coupon code VIP20 or click on the button below

Limited time offer only ENDS 1/31/2019 or after next 30 23 subscribers take advantage whichever comes first – please do not share this discount with others