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Questioneri'd like to start by in the name of the cfa society in mexico i'm delighted to introduce manish fabrai manish paprai is a very successful investor in his firm upright investments he's a big fan and he's very clear about being a big fan of warren buffett and charlie monger which i think is something that aligns perfectly with what us as financial analysts try to achieve us as objective those who were in the call before might be puzzled by us talking about blackjack one of the things that he's very or one of his achievements and as he mentioned he's achieved and as he mentioned he's very honored to to be banned of a casino of by having a strategy that wins in las vegas but more to the point in the conference he's also the author of a couple a couple books the most famous of which is dandel investments which has been translated to a number of languages
Questionertranslated to a number of languages the part where his card endeavors and the part where his card endeavors and the part where his card endeavors and his fine arts and the first match i his fine arts and the first match i his fine arts and the first match i think it's in one of his principles think it's in one of his principles think it's in one of his principles which is to bet heavily when the odds which is to bet heavily when the odds which is to bet heavily when the odds are overwhelmingly in your favor are overwhelmingly in your favor are overwhelmingly in your favor so so so without further ado i'd like to not without further ado i'd like to not without further ado i'd like to not waste more time and to to make the most waste more time and to to make the most waste more time and to to make the most out of picking monash's brains which i'm out of picking monash's brains which i'm out of picking monash's brains which i'm sure could be quite profitable sure could be quite profitable sure could be quite profitable
Otherwell uh thank you javier it's a well uh thank you javier it's a well uh thank you javier it's a true pleasure and honor to be be with true pleasure and honor to be be with true pleasure and honor to be be with the cfa society mexico members cfa does the cfa society mexico members cfa does the cfa society mexico members cfa does a lot of good work around the world a lot of good work around the world a lot of good work around the world i'm not sure i would be able to pass all i'm not sure i would be able to pass all i'm not sure i would be able to pass all the cfa tests the cfa tests the cfa tests so thankfully i was able to set up my so thankfully i was able to set up my so thankfully i was able to set up my business without taking any of the cfa business without taking any of the cfa business without taking any of the cfa exams exams exams and somehow have been hacking my way and somehow have been hacking my way and somehow have been hacking my way through i think you get a lot of benefit through i think you get a lot of benefit through i think you get a lot of benefit and discipline and discipline and discipline when you go through the cfa program when you go through the cfa program when you go through the cfa program which is pretty demanding i think we which is pretty demanding i think we which is pretty demanding i think we could we could keep this in a q a format could we could keep this in a q a format
Othercould we could keep this in a q a format if that's what you prefer you can talkif that's what you prefer you can talkif that's what you prefer you can talk about pretty much anything you'd like toabout pretty much anything you'd like toabout pretty much anything you'd like to anything that you have in your mind ianything that you have in your mind ianything that you have in your mind i think i might hesitate a bit on is justthink i might hesitate a bit on is justthink i might hesitate a bit on is just current portfolio position other thancurrent portfolio position other thancurrent portfolio position other than that you know it's open season the morethat you know it's open season the morethat you know it's open season the more time we spend talking about blackjacktime we spend talking about blackjacktime we spend talking about blackjack the happier i am so that's okay toothe happier i am so that's okay toothe happier i am so that's okay too so please feel free and if you couldso please feel free and if you couldso please feel free and if you could just when you ask a question just telljust when you ask a question just telljust when you ask a question just tell us aus aus a sentencesentencesentence about yourself that'd be great okay wellabout yourself that'd be great okay wellabout yourself that'd be great okay well actuallyactuallyactually i would probably like to start righti would probably like to start righti would probably like to start right since i since i already have the micsince i since i already have the micsince i since i already have the mic open having it's great to have like aopen having it's great to have like aopen having it's great to have like a such an open conversation with asuch an open conversation with asuch an open conversation with a successful value investorsuccessful value investorsuccessful value investor i would sayi would sayi would say i'm i'm a value investori'm i'm a value investori'm i'm a value investor i'm the treasurer at scotiabank in thei'm the treasurer at scotiabank in thei'm the treasurer at scotiabank in the daytime guitar player nighttimedaytime guitar player nighttimedaytime guitar player nighttime and very very occasionaland very very occasionaland very very occasional card player that's going to disappointcard player that's going to disappointcard player that's going to disappoint you because i feel the odds are in my
Questioneryou because i feel the odds are in my favor and i don't like betting where when the odds are in my favor but going into the conference topic into value investing i mean in my experience and i've had i guess like most people a couple of great successes and a couple of great failures but what i see is you know usually when you look at a company or industry and the multiples are like overwhelmingly look good you know first i started and i found all the companies that had legal troubles and all these asbestos suits and then i kind of started reading the legal part of the but usually what i said what i see and that's where i'd like to pick your brains is that usually when you see something that has like a really low price earning and has had strong earnings and sounds like a stable business and all the things that you're looking
Questionerand all the things that you're looking forforfor looks like when you go into these stockslooks like when you go into these stockslooks like when you go into these stocks barring a couple of great exceptionsbarring a couple of great exceptionsbarring a couple of great exceptions which are usually like forgotten stockswhich are usually like forgotten stockswhich are usually like forgotten stocks the market seems sufficient ish to methe market seems sufficient ish to methe market seems sufficient ish to me in the sense that once you're inin the sense that once you're inin the sense that once you're in the baton start coming in that justifiesthe baton start coming in that justifiesthe baton start coming in that justifies such a low pe or whatever opportunitysuch a low pe or whatever opportunitysuch a low pe or whatever opportunity seem to seem to be there soseem to seem to be there soseem to seem to be there so i like toi like toi like to what would be like yourwhat would be like yourwhat would be like your your tips into finding theyour tips into finding theyour tips into finding the you know the real businesses from theyou know the real businesses from theyou know the real businesses from the value traps would be the the bottom ofvalue traps would be the the bottom ofvalue traps would be the the bottom of the question i guessthe question i guessthe question i guess
Questioneryeah javier that's a great question andyeah javier that's a great question andyeah javier that's a great question and you know i i have practicedyou know i i have practicedyou know i i have practiced different styles of investing they'redifferent styles of investing they'redifferent styles of investing they're all within the value investing tentall within the value investing tentall within the value investing tent it's a very large tent and within thatit's a very large tent and within thatit's a very large tent and within that tent you can dotent you can dotent you can do many many different things for formany many different things for formany many different things for for example recentlyexample recentlyexample recently buffett was buying the stock ofbuffett was buying the stock ofbuffett was buying the stock of activation blizzardactivation blizzardactivation blizzard which is in the midst of awhich is in the midst of awhich is in the midst of a being acquired by microsoftbeing acquired by microsoft
Questionerbeing acquired by microsoft and the market believes that that deal will not go through and so the spread between the price that microsoft is willing to pay and the price at which activity i haven't looked at it recently but the price at which it was trading or is trading is a very widespread but buffett mentioned at the annual meeting that the reason he bought the stock is purely merger arbitrage he believes that statistically it is high probability that that deal will close and if it does close you capture that gap you have a similar gap with twitter where elon musk has you know asked or you know has a deal to buy the stock at a particular price and the market doesn't believe that that's going to happen a lot of people believe that he can get out of it you know which we will find out in a few weeks so i think both of those cases would be
Questionerboth of those cases would be part of value investing you had some reason to believe that these were high probability events that activision wizard is likely to be bought by microsoft and the twitter deal might get done maybe there is a small adjustment that mainly gets done around the price that agreed and you made those bets then that's a very valid way to go about it what i think is the best way to invest is to focus on the great business there are many things you could do merger arbitrage buy a business that's trading well below liquidation value maybe below cash and there are a number of different ways in which you can protect downside but generally speaking the way you will make the most money is by the partial ownership of a business which has tremendous economics and and a tremendous runway if you are in the happy position of the ownership of a
Warrenof the ownership of a tremendous business a tremendous runway for the most part you only need to be right once or twice in a lifetime and it would cover a lot of sins recently there was a lot of coverage about a indian investor rakesh shinjunwala who just passed away i didn't know him but i have friends who were close friends of his kind of a friend of a friend rakesh was 62 years old he was in poor health he passed away with a net worth of over four billion dollars all of it was from the market and he never managed outside money i mean if he had decided to open an investment advisory business billions of dollars would have come to it but he wasn't interested in that so he just managed his own money and when he first started he's a chartered accountant the cpa when he first started maybe in his early 20s about 40 years ago
Questionerabout 40 years ago he had no money he was absolutely like zero he went to this lady and requested her to give him a loan of about 25 000 so he could buy some stocks so the lady told him if i give you this money what is the guarantee what guarantee can you give me what collateral will i get so he said look the only collateral i can give you is my signature i have nothing else i have no assets so you should only give me the money if you trust me so she didn't fully trust him because he's an unknown guy but she tells them okay listen here's what you do you take the 25 000. i'm gonna first give you 12 500. you go buy stocks with the 12 500 and then you give me those shares i will hold custody to those shares they are your shares the upside belongs to you but that's my security so he said done he also agreed to pay her 18 interest
Otherto pay her 18 interest for the money for the money for the money which is you know i would say this was a which is you know i would say this was a which is you know i would say this was a different time probably early 80s you different time probably early 80s you different time probably early 80s you know normally you would in india you know normally you would in india you know normally you would in india you would borrow at 12 13 would borrow at 12 13 would borrow at 12 13 iraqis paid 18 iraqis paid 18 iraqis paid 18 and and then you know he started to and and then you know he started to and and then you know he started to invest and he was a you know invest and he was a you know invest and he was a you know i would say he was a split brain he did i would say he was a split brain he did i would say he was a split brain he did a lot of rapid fire trading a lot of rapid fire trading a lot of rapid fire trading but he also had two but he also had two but he also had two really long term holes really long term holes really long term holes so there's a company in india called so there's a company in india called so there's a company in india called titan industries titan industries titan industries which i think he invested in maybe which i think he invested in maybe which i think he invested in maybe 20 or 25 years ago 20 or 25 years ago 20 or 25 years ago and when he made that investment in and when he made that investment in and when he made that investment in titan industries titan industries titan industries it was like three or four percent of his it was like three or four percent of his it was like three or four percent of his portfolio portfolio portfolio he never sold a share he never sold a share he never sold a share till he died died with those shares till he died died with those shares till he died died with those shares and out of the 4 billion around 2 and out of the 4 billion around 2 and out of the 4 billion around 2 billion billion billion was titan was titan was titan and titan compounded and titan compounded and titan compounded at something around 30 at something around 30 at something around 30 30 or 35 percent 30 or 35 percent 30 or 35 percent along for more than two decades along for more than two decades along for more than two decades and actually if you study titan i don't and actually if you study titan i don't and actually if you study titan i don't want to go off track want to go off track
Otherwant to go off track your members won't have much interest in
Otheryour members won't have much interest in
Otheryour members won't have much interest in studying titan but if you study titan
Otherstudying titan but if you study titan
Otherstudying titan but if you study titan basically it's it's a jeweler
Otherbasically it's it's a jeweler
Otherbasically it's it's a jeweler and in india
Otherand in india
Otherand in india you know
Otheryou know
Otheryou know the only jewelers you would do business with was ones that your family
Otherthe only jewelers you would do business with was ones that your family
Otherthe only jewelers you would do business with was ones that your family had done business with for a long time
Otherwith was ones that your family
Otherwith was ones that your family had done business with for a long time
Otherhad done business with for a long time
Otherso you could have some trust because you
Otherso you could have some trust because you
Otherso you could have some trust because you know when you're buying gold you don't
Otherknow when you're buying gold you don't
Otherknow when you're buying gold you don't know whether it's fake or real or
Otherknow whether it's fake or real or
Otherknow whether it's fake or real or whatever else
Otherwhatever else
Otherwhatever else titan was
Othertitan was
Othertitan was it it was promoted by one of the large
Otherit it was promoted by one of the large
Otherit it was promoted by one of the large indian conglomerates who was very
Otherindian conglomerates who was very
Otherindian conglomerates who was very trusted
Othertrusted
Otherand so they had natural trust
Otherand so they had natural trust
Otherand so they had natural trust indian jewelry was very fragmented and
Otherindian jewelry was very fragmented and
Otherindian jewelry was very fragmented and now titan is gradually consolidating
Othernow titan is gradually consolidating
Othernow titan is gradually consolidating that it's in my opinion titan still has
Otherthat it's in my opinion titan still has
Otherthat it's in my opinion titan still has maybe a 50-year runway ahead of it
Othermaybe a 50-year runway ahead of it
Otherit's got a huge runway ahead because
Otherit's got a huge runway ahead because
Otherit's got a huge runway ahead because it's
Otherit's
Otherit's so uh but but to rakesh's to give
Otherso uh but but to rakesh's to give
Otherso uh but but to rakesh's to give rakhish credit
Otherrakhish credit
Othercompany went through lots of ups and
Othercompany went through lots of ups and
Othercompany went through lots of ups and downs but he understood the business
Otherdowns but he understood the business
Otherdowns but he understood the business and when it became 10 20 30 40 50 of his
Questionerand when it became 10 20 30 40 50 of his portfolio he was least bothered about it just kept it and then there was another company lupin which is the pharmaceutical industry and i think lupine became 25-30 of his book so he was doing a lot of rapid fire trading every day he had three screens in front of him and all of that and he'd buy stuff at 10 o'clock and sell it at two o'clock whatever else i think that was just to keep his mind occupied okay very smart guy but these two stocks with the guy who's doing this rapid fire trading and had a view on the market and view on every wiggle that the stocks market is doing and so on he never touched these companies and the reason these companies did well were that they were great business and he never sold them even when they looked optically overpriced so titan became a market darling everyone loved titan
Questionermarket darling everyone loved titanafter 20 yearsafter 20 yearsafter 20 years they understand the story really wellthey understand the story really wellthey understand the story really well and it's like costco you know everyoneand it's like costco you know everyoneand it's like costco you know everyone understands costco everyone loves costcounderstands costco everyone loves costcounderstands costco everyone loves costco or walmartor walmartor walmart and and so on but soand and so on but soand and so on but so one of the important things in investingone of the important things in investingone of the important things in investing whichwhichwhich you knowyou knowyou know is a departure from ben grahamis a departure from ben grahamis a departure from ben graham while ben grahamwhile ben grahamwhile ben graham is regarded as a father of valueis regarded as a father of valueis regarded as a father of value investinginvestinginvesting he also did in my opinion somehe also did in my opinion somehe also did in my opinion some disservicedisservicedisservice to us value investorsto us value investorsto us value investors because ben graham had abecause ben graham had abecause ben graham had a an edict that was cast in stonean edict that was cast in stonean edict that was cast in stone and the edict was that a stock shouldand the edict was that a stock shouldand the edict was that a stock should not be heldnot be heldnot be held above its intrinsic value and actuallyabove its intrinsic value and actuallyabove its intrinsic value and actually we do respect and i hope you will pardonwe do respect and i hope you will pardonwe do respect and i hope you will pardon my blasphemymy blasphemymy blasphemy the correct model i believethe correct model i believethe correct model i believe would be like the buffett monger orwould be like the buffett monger orwould be like the buffett monger or chuck acree modelchuck acree modelchuck acree model which would bewhich would bewhich would be like like chuck acree is a great examplelike like chuck acree is a great examplelike like chuck acree is a great example and i think maybe you should see if youand i think maybe you should see if youand i think maybe you should see if you can get him to speak to you guyscan get him to speak to you guyscan get him to speak to you guys chuck akri asks a question he doesn't
Questionerchuck akri asks a question he doesn't
Questionerchuck akri asks a question he doesn't ask the question is this talk abouthe asked the questionhe asked the questionhe asked the question is the business getting betteris the business getting betteris the business getting better andandand if the business is getting betterif the business is getting betterif the business is getting better then you need to give thethen you need to give thethen you need to give the roomroomroom so let's say titanso let's say titanso let's say titan is growing 15 20 a yearis growing 15 20 a yearis growing 15 20 a year and let's say theand let's say theand let's say the multiple the trailing multiple ismultiple the trailing multiple ismultiple the trailing multiple is a pe or 40a pe or 40a pe or 40 or a pe or 50 very high rightor a pe or 50 very high rightor a pe or 50 very high right according to rockageaccording to rockageaccording to rockage it is very clear the business keepsit is very clear the business keepsit is very clear the business keeps getting better the more stores they opengetting better the more stores they opengetting better the more stores they open the deeper the moat gets because theythe deeper the moat gets because theythe deeper the moat gets because they can amortize their designs over a largercan amortize their designs over a largercan amortize their designs over a larger uh pool and the wider the distance goesuh pool and the wider the distance goesuh pool and the wider the distance goes between them and their competitorsbetween them and their competitorsbetween them and their competitors and soand soand so while you would not buywhile you would not buywhile you would not buy item at 50 times trailing earningsitem at 50 times trailing earningsitem at 50 times trailing earnings or 40 times trailing maybe even 30 timesor 40 times trailing maybe even 30 timesor 40 times trailing maybe even 30 times trailing earningstrailing earningstrailing earnings you should not sell ityou should not sell ityou should not sell it so there is an asymmetryso there is an asymmetryso there is an asymmetry in investingin investingin investing whichwhichwhich ben graham didn'tben graham didn'tben graham didn't talk about or probably even didn'ttalk about or probably even didn'ttalk about or probably even didn't believe it wherebelieve it wherebelieve it where at a certain price i would not buy a
Questionerat a certain price i would not buy a stock but i wouldn't be wanting to sell it and so i think that when we make invest so this asymmetry you know between what price you would buy a stock and what price you'd be willing to sell a stock at
Questionerso let me let me take a slight uh detour the very nature of capitalism is that if someone has a great moment and is making super normal profits there are lots of incentives with lots of entrepreneurs and businesses to go into that business and wipe out supernova profits that is the nature of capital which means that something like titan going for 30 40 years moscow going to two years or walmart or southwest airlines these anomalies should not exist but they do exist and the reason they exist is that when an entrepreneur starts a business the best that they can in almost all case is some what i would call arbitrage
Otheris some what i would call arbitrage opportunityopportunityopportunity which allows them to make some decentwhich allows them to make some decentwhich allows them to make some decent money for some finite period so formoney for some finite period so formoney for some finite period so for exampleexampleexample if in the polanco district of mexicoif in the polanco district of mexicoif in the polanco district of mexico citycitycity there are no sushi restaurantsthere are no sushi restaurantsthere are no sushi restaurants a few restaurants and someone opened thea few restaurants and someone opened thea few restaurants and someone opened the great sushi restaurantgreat sushi restaurantgreat sushi restaurant they will do really wellthey will do really wellthey will do really well for a whilefor a whilefor a while but once other sushi chefs figure it outbut once other sushi chefs figure it outbut once other sushi chefs figure it out and they start opening sushi restaurantsand they start opening sushi restaurantsand they start opening sushi restaurants next to this guynext to this guynext to this guy those profits will start eroding nowthose profits will start eroding nowthose profits will start eroding now if this sushi chef has some secret sauceif this sushi chef has some secret sauceif this sushi chef has some secret sauce where nobody can match his quality ofwhere nobody can match his quality ofwhere nobody can match his quality of food or whatever elsefood or whatever elsefood or whatever else it could become an enduring mold thatit could become an enduring mold thatit could become an enduring mold that could go on for a long timecould go on for a long timecould go on for a long time so enduring modes are very hard toso enduring modes are very hard toso enduring modes are very hard to predict when you startpredict when you startpredict when you start but what happens in capitalism sometimesbut what happens in capitalism sometimesbut what happens in capitalism sometimes is when you look back you can identifyis when you look back you can identifyis when you look back you can identify enduring modesenduring modesenduring modes thatthatthat somehow got builtsomehow got builtsomehow got built andandand even look like they might persist foreven look like they might persist foreven look like they might persist for somesomesome and those are the ones to focus on so
Questionerand those are the ones to focus on so one of the reasons the index is so hard to believe to believe to believe so there are literally just about four or five percent of company or five percent of company or five percent of company that generate almost all the returns that generate almost all the returns that generate almost all the returns that the index that the index that the index gives you gives you gives you in the stock market if you took out in the stock market if you took out in the stock market if you took out those four or five percent of companies those four or five percent of companies those four or five percent of companies the market returns would be terrible the market returns would be terrible the market returns would be terrible when we as individual investors are when we as individual investors are when we as individual investors are picking stocks picking stocks picking stocks the the the odds are stacked against us because you odds are stacked against us because you odds are stacked against us because you have to pick one out of twenty have to pick one out of twenty have to pick one out of twenty and the odds of being wrong and and the odds of being wrong and and the odds of being wrong and especially you know you put on a especially you know you put on a especially you know you put on a cheapskate a hat cheapskate a hat cheapskate a hat and you're trying to buy something cheap and you're trying to buy something cheap and you're trying to buy something cheap and then you're trying to pick one of and then you're trying to pick one of and then you're trying to pick one of these 20 great businesses cheap these 20 great businesses cheap these 20 great businesses cheap good luck with that very hard to pull good luck with that very hard to pull good luck with that very hard to pull off and the index does so well because off and the index does so well because off and the index does so well because the index is too dumb to know that it the index is too dumb to know that it the index is too dumb to know that it owns google owns google owns google too dumb to know that it owns microsoft too dumb to know that it owns microsoft too dumb to know that it owns microsoft too dumb to know that it owns costco and too dumb to know that it owns costco and
Questionertoo dumb to know that it owns costco and too dumb to sell these things evertoo dumb to sell these things evertoo dumb to sell these things ever and so it just rides these things soand so it just rides these things soand so it just rides these things so just like we saw with rakeshjust like we saw with rakeshjust like we saw with rakesh three percent of his portfolio which wasthree percent of his portfolio which wasthree percent of his portfolio which was a really small piece which was probablya really small piece which was probablya really small piece which was probably at that time maybe worth less than 50at that time maybe worth less than 50at that time maybe worth less than 50 million dollars or 25 million dollarsmillion dollars or 25 million dollarsmillion dollars or 25 million dollars becomes two billion dollarsbecomes two billion dollarsbecomes two billion dollars okay andokay andokay and what did he do the biggest thing he hadwhat did he do the biggest thing he hadwhat did he do the biggest thing he had to do wasto do wasto do was do nothing so the holy grail ofdo nothing so the holy grail ofdo nothing so the holy grail of investinginvestinginvesting isisis we will make a lot of mistakes johnwe will make a lot of mistakes johnwe will make a lot of mistakes john templeton said that the best investortempleton said that the best investortempleton said that the best investor will be wrong two out of three timeswill be wrong two out of three timeswill be wrong two out of three times or one out of three timesor one out of three timesor one out of three times most of us will be wrong half themmost of us will be wrong half themmost of us will be wrong half them even if you're wrong half the time youeven if you're wrong half the time youeven if you're wrong half the time you can do really well that's a verycan do really well that's a verycan do really well that's a very forgiving businessforgiving businessforgiving business but the important thing is that when youbut the important thing is that when youbut the important thing is that when you find yourself in the happy positionfind yourself in the happy positionfind yourself in the happy position of ownership of a great businessof ownership of a great businessof ownership of a great business you have to set aside bengalyou have to set aside bengalyou have to set aside bengal and if you can see the runway and you
Todd Combsand if you can see the runway and you can see that it's a great business and it's going to keep growing keep doing well run by great managers honest managers then you just hang on to it for dear life now if it gets egregious so you can hold a business which is overwhelming but you should not hold it when egregiously so we might consider costco or valued at 40 times earnings or 50 times earnings but we should hold it if costco went to 200 times normalized earnings it should have been sold a long time because then now we've you know we've left the reservation so sorry for the wrong long answer that's kind of how i think about it no i think it's it's great that it's a long answer it's a great answer
Questionerso i'd like to open the floor to see if somebody else would like to ask a question yes we have a a question from julio what are your thoughts about baba
Questionerare your thoughts about baba
Questionerwell i was hoping the conversation out of specific names
Todd Combswell i would say alibaba is a great business got into the crosshairs of the chinese community communist party that's usually not a good thing they have some very strong modes they have great management probably the business does well beyond that i think you need to do your homework and one thing i would just generally say is that given how large baba is and how long a run it has had for the length of period it has that run it would not be my top pick or maybe even my fifth or seventh pick so i think that there should be a lot of other businesses that should be a lot more attractive but probably better economics than alibaba thank you mauricio santos
Questionerwants to make a question hi thanks for the call thanks cfa for organizing this i was wondering
Questioneri was wondering what are your thoughts about active management no has it changed across the years in my view fees going down everywhere it has become more difficult now to do active management it seems to me that as a result of this active management is being secluded to a smaller part of the market i i would love to to to hear your thoughts about this how how has active management changed throughout time thank you
Warrenyeah i think that's a great question so for a long time in the united states we've had more mutual funds than etfs than individual stocks which to me is a stunning statistic and i think we we all know the stats that in active management because the fees and frictional costs are a lot higher it's almost a law of physics that 80 plus percent of active managers after fees would lag the index so i think for the know nothing investor
Warrenso i think for the know nothing investor it is a very good idea to just index it is a very good idea to just index it is a very good idea to just index because because because 80 80 80 chance that if you pick an active chance that if you pick an active chance that if you pick an active manager manager manager you would have picked someone who would you would have picked someone who would you would have picked someone who would underperform after fees underperform after fees underperform after fees so the so the so the the picking of great managers the picking of great managers the picking of great managers is a really difficult exercise is a really difficult exercise is a really difficult exercise i think picking great managers is much i think picking great managers is much i think picking great managers is much harder harder harder than picking great stocks than picking great stocks than picking great stocks and so and so and so if the odds are set against us in terms if the odds are set against us in terms if the odds are set against us in terms of picking great stocks of picking great stocks of picking great stocks they're set very much against they're set very much against they're set very much against managers managers managers fund management industry is interesting fund management industry is interesting fund management industry is interesting in the sense that in the sense that in the sense that 80 of the industry does not add value 80 of the industry does not add value 80 of the industry does not add value it subtracts value it subtracts value it subtracts value but it continues to exist but it continues to exist but it continues to exist so it's kind of like someone sells a so it's kind of like someone sells a so it's kind of like someone sells a substandard product substandard product substandard product but they don't go out of business which but they don't go out of business which but they don't go out of business which doesn't happen in almost any other doesn't happen in almost any other doesn't happen in almost any other industry fund management is a little bit industry fund management is a little bit industry fund management is a little bit peculiar from that point of view because peculiar from that point of view because peculiar from that point of view because the stickiness and the stickiness and the stickiness and recurring nature and and so on recurring nature and and so on recurring nature and and so on so i think it will continue we will
Questionerso i think it will continue we will continue to have sub-par managers and we will continue to see 80 plus percent of of assets in places where they should not be and such as life thank you very much actually that's a very good question mauricio i have one question and then thank you for watching
Questioneri mean actually these two questions argument that value investing is really a function of where you are measuring from because the entire value investment thesis you pick these are down in price hoping that they will go up that works only if you if you make offers for example stocks so that's question number one so what do you think about that technical argument
Questionervalue is in companies that are that are growing fast so if you invested in fan over the last couple of years you did pretty well and you created value so at one point the distinction between value and growth is more
Questionervalue and growth is more of a marketing
Warrenyeah i'll take your second question uh
Questioneryeah i'll take your second question uh
Warrenyeah i'll take your second question uh first i might need the first one repeated i didn't quite get that
Questionerfirst i might need the first one repeated i didn't quite get that
Warrenvalue and growth are joined at the hip there is no such thing as growth investing without value so all intelligent investing is value investment the best kind of value investments are ones where the company generates very high returns on equity and has a very high growth rate and has a very long runway which fits the description of many fang stocks investing in fang stocks is not some departure from value investing it's actually very much within in fact if if one had a crystal ball and one could see the future cash flows let's say in the year 2000 or 2002 that google or facebook or microsoft would generate until the day they don't exist you know they'll till they disappear and you were able to discount those back
Questionerand you were able to discount those back that would give you a basis to invest in those companies which would not be debatable and it is entirely possible that these companies were worth investing in even at a trailing earnings of 100 or 150 if the future cash flows suggested that one could have bought walmart at you know double or triple the price it was trading many times in access still delivered double digit analyzer even even buffett has said that you know when they bought c's candy which they paid like 25 million dollars for and they've pulled out several billion dollars in dividends so far i think when they look back they say that they were not willing to pay up any over what they offered but they now say it was dumb and they are thankful that the owners didn't walk away but they said that in hindsight they could have paid 100
Questionerin hindsight they could have paid 100 million for that business or 150 million and would have still been a great amount you know five or six times and you know that was a business at that time i think my book value was like seven or eight million so i think that it's in the nature of capitalism that when you get to these kind of really unusual businesses and then and you know the fangs have a lot of unusualness about that because they're in the business of converting atoms into bits when you convert atoms into bits and you have some kind of mouse trap that doesn't let others you know get into your area of converting atoms into bits you can do really well i mean if i if i look at the advertising market it used to be that people used to say you know some advertisers used to say half my advertising works and half dozen i just don't know which half
Questioneri just don't know which half so that is no longer true
Questionerwhen you advertise with google or facebook you know exactly what is working and you know exactly what is not working and you can pinpoint the results which was not possible millennia before that and also a lot of it as consolidating so a large portion of those advertising dollars end up in very few hands and and those those hands that it ends up in have incredible modes now these modes can fill over and they can change over time because these are technology businesses so i think it's just a matter of being able to figure out what is a sustainable mode what are the likely cash flows what are you paying for those cash flows and if all of those make good sense and a high probability then none of those investments are outside of value invest if you could repeat your first question i didn't quite get that
Questionerfirst question i didn't quite get that
Questioneruh the first question is because this entire growth sort of competition that i was trying to make it depends on what benchmarks you use and what kind of analytics you do but you know if you look at the one period of time stocks that are defined as values to perform better than are classified as growth and vice versa but that's really a function in my opinion that you have a function of where you are measuring from i i'd rather prefer analyze much more sustainable business models and forget about instances that you know try to categorize
Todd Combsyeah that's a great question so buffett has a quote that he says that we like to great we like to buy great businesses when they are on the operating team where they have hit some hopefully temporary hiccup so the nature of my psyche that i can recognize that mastercard is a
Todd Combsi can recognize that mastercard is a great business i may even recognize that it trading at 30 40 times trailing earnings is perfectly normal and it may even be true that paying something like 20 times 12 trailing earnings might be a great price but someone with my psyche would not be willing to even pay 20 times earnings for a mastercard it just doesn't fit for me and and that's perfectly okay because this is not a game of called strikes so in baseball you get three strikes and you're out in investing you can let a thousand balls go by so i like microsoft as a business i don't like the price so i could just focus on great businesses that are on the operating room okay and when a great business is on the operating table no one's interested so it's kind of like when buffett took the first large position in geico when he bought i think about 40 of the
Questionerwhen he bought i think about 40 of the companycompanycompany there was a lot of fear that thethere was a lot of fear that thethere was a lot of fear that the business was going to diebusiness was going to diebusiness was going to die they had done some bad underwritingthey had done some bad underwritingthey had done some bad underwriting all theirall theirall their numbers were upside down and thennumbers were upside down and thennumbers were upside down and then surplus was gone and all of that but hesurplus was gone and all of that but hesurplus was gone and all of that but he stepped in change managementstepped in change managementstepped in change management he got some breathing room of thehe got some breathing room of thehe got some breathing room of the from the regulators in that case he wasfrom the regulators in that case he wasfrom the regulators in that case he was active in the businessactive in the businessactive in the business butbutbut there are many many examples becausethere are many many examples becausethere are many many examples because it's in the nature of capitalismit's in the nature of capitalismit's in the nature of capitalism that companies don't go straight up in athat companies don't go straight up in athat companies don't go straight up in a straight linestraight linestraight line they are going tothey are going tothey are going to ebb and flow and they are going to haveebb and flow and they are going to haveebb and flow and they are going to have issues and hiccups andissues and hiccups andissues and hiccups and things that happen to themthings that happen to themthings that happen to them and so if you have an understanding thatand so if you have an understanding thatand so if you have an understanding that whatever has happened to themwhatever has happened to themwhatever has happened to them is a temporary hiccupis a temporary hiccupis a temporary hiccup so one of the advantagesso one of the advantagesso one of the advantages we have versus the marketwe have versus the marketwe have versus the market is the market tends to overweightis the market tends to overweightis the market tends to overweight short-term factorsshort-term factorsshort-term factors and if we canand if we canand if we can have a more balanced rating of thehave a more balanced rating of thehave a more balanced rating of the business or over a much longer period
Questionerbusiness or over a much longer period that can give us an edge against the market if we have the patience to hold over much longer periods that gives us another edge against them so for a investor like me i want to have my cake and eat it too so i don't want to pay up for a greatness just doesn't work for me even though it makes all the sense i want to have the great business without paying and because they are 50 000 stocks and because there's some number of them that are on the operating table at any given time if i'm willing to do the work once in a while i'll get a business on the operating table that i can see there's it's a temporary issue and it'll go away and then we can we can do just fine that can work out extremely well
Questionerhi this is marine mendoza speaking and i just have another question that probably is already implied in your previous answers but i
Questionerimplied in your previous answers but i just want to get this straight my question is how do you navigate in this kind of like bearish scenario where we have like macroeconomics hitting you know the screen every single minute what do you take what are your takes on you know the short term inflation the interest rate increases you know all these new numbers that that we here in the states daily basis
Questioneri think you have to overlay those numbers in the context of a business you might own or want to own so let's say i own a business like costco for example or a business like amazon so how does you know the price of oil affect costco how does inflation affect cost and i think the answer really comes out i really think about yeah they oil prices go up their costs go up their customers have to spend more to get to the store it's a negative and inflation is a negative people have
Todd Combsand inflation is a negative people have less money to spend and so on so forth but when i overlay that with the nature of the business which is that they have a secular structural advantage over their competitors i mean costco costco opened two stores in china recently in the last year or so two years and the stores got mobbed like they could not handle and i don't think even now they can handle the volume of the crowds that want to shop at those people and those two stores for costco in china are insanely profitable because the volumes are so so how many stores will costco have in china in 20 years okay we don't know the answer we know it's likely to be more than two it might be more than 200 it might even be more than a thousand we don't know that if costco ends up with a thousand stores in china in the us they only have 800 stores
Questionerstores but they end up with a thousand stores but they end up with a thousand stores but they end up with a thousand stores in in china in in china in in china that is a factor that has a huge impact that is a factor that has a huge impact that is a factor that has a huge impact on how well an investor does on how well an investor does on how well an investor does
Questionerso i think that when you so i think that when you so i think that when you find yourself in the happy place find yourself in the happy place find yourself in the happy place of the partial ownership of a great of the partial ownership of a great of the partial ownership of a great business business business the best way to think about it is you the best way to think about it is you the best way to think about it is you think about it like it's your family think about it like it's your family think about it like it's your family business business business and if your family owned 70 of costco and if your family owned 70 of costco and if your family owned 70 of costco somebody came to you and said somebody came to you and said somebody came to you and said hey hey hey can i buy your business can i buy your business can i buy your business you would say no you know we might have you would say no you know we might have you would say no you know we might have 2 000 stores in china in 20 years 2 000 stores in china in 20 years 2 000 stores in china in 20 years and we are only in 10 countries and in and we are only in 10 countries and in and we are only in 10 countries and in 20 30 years we might be in 30 countries 20 30 years we might be in 30 countries 20 30 years we might be in 30 countries and we might have 10 000 stores in 30 40 and we might have 10 000 stores in 30 40 and we might have 10 000 stores in 30 40 years who knows years who knows years who knows
Questionerso so so because the future because the future because the future possibly looks great possibly looks great possibly looks great and the probability that the future and the probability that the future and the probability that the future looks bleak is pretty low looks bleak is pretty low looks bleak is pretty low all the other noise coming at us all the other noise coming at us all the other noise coming at us is not relevant got it completely is not relevant got it completely is not relevant got it completely irrelevant when when rakesh shunjunwala irrelevant when when rakesh shunjunwala irrelevant when when rakesh shunjunwala bought titan
Todd Combsbought titan the indian jewelry industry is very fragmented no one has even one percent market share and if you fast forward 30 40 years titan might be 25 and nobody else might be even two percent and that runway just continues you know and so to to me what is important is that those are the factors that's really what matters so separate the signal from the noise and ignore the noise and especially noise that you have a hard time even understanding or calibrating so who cares what the fed does who cares what inflation is who cares what the price of oil is who cares what the outcome of ukraine war is even though that's a very sad situation there's a lot of things that don't really matter and we should focus on the things that are likely to affect the things that are likely to affect a business the most are factors around the business not factors around
Questioneraround the business not factors around the economy great answer thank you very much for your time
Othersure i'm honest thank you for being here
Questionerbig fan here i just wanted to ask you what's like your idea on where is value investing going in the future you know it has changed since ben graham and the idea of the cigar bots you know and now like kind of value growth you know and where do you think value investing is going in the future
Warrencharlie munger tells me that if warren and he was starting out today they could not do what they did he said that when they started out they used to shoot fish in a barrel after the water had been let out and so there was relatively few people looking at a relatively large universe of different stocks and assets now we have a lot of brain power directed towards you know relatively narrow number of stocks and markets and
Questionernarrow number of stocks and markets and so onso onso on so anytime you have a large number ofso anytime you have a large number ofso anytime you have a large number of intelligent people with a lot of moneyintelligent people with a lot of moneyintelligent people with a lot of money looking at certain assets you'relooking at certain assets you'relooking at certain assets you're generally not going to findgenerally not going to findgenerally not going to find a lot of mispriced opportunities they'lla lot of mispriced opportunities they'lla lot of mispriced opportunities they'll still exist because if you think longstill exist because if you think longstill exist because if you think long termtermterm that can give you an edge i think youthat can give you an edge i think youthat can give you an edge i think you have to zag when people are zigginghave to zag when people are zigginghave to zag when people are zigging for the most part i think i havefor the most part i think i havefor the most part i think i have one stock i own in the u.sone stock i own in the u.sone stock i own in the u.s andandand i owni owni own a few stocks in turkeya few stocks in turkeya few stocks in turkey no one has any interest in turkeyno one has any interest in turkeyno one has any interest in turkey has 80has 80has 80 annual inflation on an official basisannual inflation on an official basisannual inflation on an official basis on an unofficial basis it might be evenon an unofficial basis it might be evenon an unofficial basis it might be even higher than thathigher than thathigher than that and so everyone and their brother hasand so everyone and their brother hasand so everyone and their brother has exited turkeyexited turkeyexited turkey when i bring upwhen i bring upwhen i bring up turkey to really smartturkey to really smartturkey to really smart friends of mine who are really goodfriends of mine who are really goodfriends of mine who are really good value investorsvalue investorsvalue investors who moan and grown that they cannot findwho moan and grown that they cannot findwho moan and grown that they cannot find anything to buyanything to buyanything to buy they immediately dismiss itthey immediately dismiss itthey immediately dismiss it i don't want to talk about turkeyi don't want to talk about turkeyi don't want to talk about turkey i want to talk about u.si want to talk about u.s
Questioneri want to talk about u.s the thing is that there is always the thing is that there is always the thing is that there is always mispriced securities underpriced mispriced securities underpriced mispriced securities underpriced securities in some securities in some securities in some area or segment that is usually hated or area or segment that is usually hated or area or segment that is usually hated or unloved and and and most people do not want to go into most people do not want to go into most people do not want to go into places that are hated and unloved places that are hated and unloved places that are hated and unloved but if you're willing to go to some of but if you're willing to go to some of but if you're willing to go to some of those places those places those places so so so like i mean i would say in turkey it's like i mean i would say in turkey it's like i mean i would say in turkey it's really simple really simple really simple it's really difficult it's really difficult it's really difficult to invest in a place to invest in a place to invest in a place with 80 or higher inflation and do well with 80 or higher inflation and do well with 80 or higher inflation and do well in dollars in dollars in dollars but but but there are some businesses in turkey there are some businesses in turkey there are some businesses in turkey where all their revenue is in euros or where all their revenue is in euros or where all their revenue is in euros or 95 98 of the revenues in euros and 95 98 of the revenues in euros and 95 98 of the revenues in euros and almost all their costs are in lira almost all their costs are in lira almost all their costs are in lira and something like every 10 drop and something like every 10 drop and something like every 10 drop in the lira in the lira in the lira increases their euro earnings by two increases their euro earnings by two increases their euro earnings by two three four percent three four percent three four percent so actually so actually so actually high inflation high inflation high inflation is a tailwind is a tailwind is a tailwind so for example so for example so for example there's a there's a there's a fruit juice company in turkey i don't fruit juice company in turkey i don't fruit juice company in turkey i don't own this company just giving an example own this company just giving an example own this company just giving an example where 90 of 98 the revenue is exports
Otherwhere 90 of 98 the revenue is exports into the european union into the european union into the european union so turkey is part of the european commons so turkey is part of the european commons so turkey is part of the european common market it can export to the european market it can export to the european market it can export to the european union with no duties or tariffs union with no duties or tariffs union with no duties or tariffs so all their revenues come so all their revenues come so all their revenues come from euro in euros from europe from euro in euros from europe from euro in euros from europe their expenses are the payments they their expenses are the payments they their expenses are the payments they make to the turkish farmers and the make to the turkish farmers and the make to the turkish farmers and the processing and all of that that happens processing and all of that that happens processing and all of that that happens those payments keep declining in euros those payments keep declining in euros those payments keep declining in euros and the revenues are stable and the revenues are stable and the revenues are stable but but but it's been taken out back and shot it's been taken out back and shot it's been taken out back and shot because it's in turkey because it's in turkey because it's in turkey and and and therein lies the opportunity so it might therein lies the opportunity so it might therein lies the opportunity so it might be like two percent of businesses in be like two percent of businesses in be like two percent of businesses in turkey or three percent of businesses in turkey or three percent of businesses in turkey or three percent of businesses in turkey that are listed have this dynamic turkey that are listed have this dynamic turkey that are listed have this dynamic of euro revenues turkish lira cost of euro revenues turkish lira cost of euro revenues turkish lira cost and and and when everything was shot in turkey when everything was shot in turkey when everything was shot in turkey these were short as well these were short as well these were short as well so so so the indian guy can go into turkey the indian guy can go into turkey the indian guy can go into turkey focus only on this particular metric focus only on this particular metric focus only on this particular metric that i want that i want that i want euro revenues euro revenues euro revenues and i want to leave my expenses
Questionerand i want to leave my expenses and i want to leave my expenses and i want to pay and i want to pay and i want to pay three times three times three times and it's available on a plan and it's available on a plan and it's available on a plan no one else is interested no one else is interested no one else is interested life is great life is great life is great so like so like so like this guy jim cramer says i'm not a big this guy jim cramer says i'm not a big this guy jim cramer says i'm not a big fan of jim cramer fan of jim cramer fan of jim cramer but he says but he says but he says there's always a bull market somewhere there's always a bull market somewhere there's always a bull market somewhere and i agree with that so there is always and i agree with that so there is always and i agree with that so there is always value available somewhere because there value available somewhere because there value available somewhere because there are 50 000 stocks there are some stocks are 50 000 stocks there are some stocks are 50 000 stocks there are some stocks that are on the operating that are on the operating that are on the operating operating table operating table operating table and there are some countries that are on and there are some countries that are on and there are some countries that are on the operating table the operating table the operating table and and and if you're willing to sift through if you're willing to sift through if you're willing to sift through it may pay off listed listed listed they are they are listed francisco they are they are listed francisco they are they are listed francisco and they are waiting for your buy order oh i want to tell you something about oh i want to tell you something about oh i want to tell you something about turkey you may find interesting turkey you may find interesting turkey you may find interesting when i made my first trip to the country when i made my first trip to the country when i made my first trip to the country by the way i really enjoy my trip to by the way i really enjoy my trip to by the way i really enjoy my trip to turkey i've enjoyed my trips to mexico turkey i've enjoyed my trips to mexico turkey i've enjoyed my trips to mexico city as well city as well city as well but i enjoy my trips to istanbul but i enjoy my trips to istanbul but i enjoy my trips to istanbul because when i have the grilled blue because when i have the grilled blue because when i have the grilled blue fish on the bosphorus liver which has
Otherfish on the bosphorus liver which has just been brought in by the fishermen a few hours ago nothing is better than that so i can dine on the blue fish and then i can go buy my three times earning stone and then i again go dine on the blue fish the next day and its life is great so on my first trip to turkey which was in 2018 i met this guy cfo of one of the largest anglo-armory center and he says to me monish do you know that every country has a national game do you know what the national game of turkey i said why don't you educate me so he said well you know like in russia the national game is chess in the u.s the national game is poker in china the national game is bakarin and in turkey he said the national game is backgammon they have all these kind of parlors like video pilots like backgammon palace where people go in and play backhand so he said look
Otherand play backhand so he said look chess purely skill no luck poker combination of skill and love baccarat and backgammon pure luck no skill okay so he said the turkish stock market eighty percent is held by insiders or foreigners and that eighty percent does not trade it's just static with almost no trading of that eighty percent the twenty percent that is quote unquote free float with retail turkish investors and institutional turkish investors that turns over every nine days so the trading volumes of the 20 float is completely turning over every night i mean if i look at a typical u.s stock maybe the entire market cap changes hands two times a year or something one time a year this is changing hands 35-40 times okay and it's not just 35-40 times a year most turkish investors they don't even say i'm investing in the stock market
Questionerstock market they say i'm playing in the stock theythey say i'm playing in the stock theythey say i'm playing in the stock they call it playing the stock not investingcall it playing the stock not investingcall it playing the stock not investing their model is that i want to put mytheir model is that i want to put mytheir model is that i want to put my money at 10 o'clockmoney at 10 o'clockmoney at 10 o'clock at 10at 10at 10 per share or 10 liter per shareper share or 10 liter per shareper share or 10 liter per share and by one o'clock i want to sell it forand by one o'clock i want to sell it forand by one o'clock i want to sell it for 11 lima and move on11 lima and move on11 lima and move on and next day againand next day againand next day again over and over againover and over againover and over again andandand this other cfo this lady very nicely shethis other cfo this lady very nicely shethis other cfo this lady very nicely she was telling mewas telling mewas telling me i get these calls from retail investorsi get these calls from retail investorsi get these calls from retail investors in turkeyin turkeyin turkey and they think they like buyingand they think they like buyingand they think they like buying carpetscarpetscarpets so they ask herso they ask herso they ask her how much how much you want for one sharehow much how much you want for one sharehow much how much you want for one share so she says to them it's traded on theso she says to them it's traded on theso she says to them it's traded on the stock market no no you tell me how muchstock market no no you tell me how muchstock market no no you tell me how much give me good pricegive me good pricegive me good price i i buy it okayi i buy it okayi i buy it okay and after i buy it how much can i selland after i buy it how much can i selland after i buy it how much can i sell it to you tomorrowit to you tomorrowit to you tomorrow these are real conversationsthese are real conversationsthese are real conversations okayokayokay she says i don't even know how toshe says i don't even know how toshe says i don't even know how to respondrespondrespond okay but this is what happened sookay but this is what happened sookay but this is what happened so our friend warren has a coolour friend warren has a coolour friend warren has a cool you know he has all theseyou know he has all theseyou know he has all these he has the operating table he says
Questionerhe has the operating table he says the stock market is a mechanism to take wealth from the active to the inactive and i look at this in turkey with the cfo telling me about this nine nine days trading volume i said they want to give me their wealth they are saying please take my wealth the indian guy says okay no problem i'll help you i'll take you well okay so this you know the trading volumes are really high and the thing is the people who are investing for four hours or three hours or two days or whatever they don't really care about the business they don't care what will happen to costco in 20 years in china that's not on the radar okay they're concerned about what happens in costco in the next one hour okay that's really what they're focused on so i see this company in turkey you know it's a warehouse operator largest warehouse operator 12 million square feet of warehouses
Warrensquare feet of warehouses you could liquidate the whole business in six months and you would get seven or eight hundred million dollars for these warehouses very prime warehouses visited them the market cap when i first invested was 20 million it was trading at three percent of liquidation value and i couldn't find anything wrong with my turkish friend who took me to see the company owned the stock and it looked like a perfectly legitimate company and i thought i'd never get any shares out of this and because of this rapid fire trading we own one third of the company for seven million dollars hallelujah and that 20 million i think now is like 120 or 140 million it's gone up a little bit but the value of the business has gone up even more because they are like the juice seller all the either the leases are in euros or they are inflation indexed
Otheror they are inflation indexed they are borrowing at lira they're they are borrowing at lira they're they are borrowing at lira they're borrowing in lira at 14 borrowing in lira at 14 borrowing in lira at 14 when the inflation rate is 80 or 100 when the inflation rate is 80 or 100 when the inflation rate is 80 or 100 percent percent percent by the time they pay those lima back by the time they pay those lima back by the time they pay those lima back they'll pay back five percent of what they want they want they want okay that it's not a loan it's a grant okay that it's not a loan it's a grant okay that it's not a loan it's a grant the bank loan is just a grant the bank loan is just a grant the bank loan is just a grant you know so they make they make money you know so they make they make money you know so they make they make money even on the bank when we have a dynamic even on the bank when we have a dynamic even on the bank when we have a dynamic like turkey like turkey like turkey and when i find that nobody is and when i find that nobody is and when i find that nobody is interested interested interested you know you know you know it's okay indian guy will be interested it's okay indian guy will be interested it's okay indian guy will be interested and and and the food is great the food is great the food is great and and the atmosphere is great the atmosphere is great the atmosphere is great everything is good everything is good everything is good okay well okay well okay well thank you very much manish i think we're thank you very much manish i think we're thank you very much manish i think we're two minutes away so maybe we should be two minutes away so maybe we should be two minutes away so maybe we should be wrapping up but i think it's been wrapping up but i think it's been wrapping up but i think it's been it's been really insightful to to hear it's been really insightful to to hear it's been really insightful to to hear you especially you especially you especially in these times where you know while in these times where you know while in these times where you know while investing has become almost a meme by investing has become almost a meme by investing has become almost a meme by some in some corners of the investment some in some corners of the investment some in some corners of the investment world but i tend to agree that in the
Questionerworld but i tend to agree that in the long run you know it's the probably the way to to prevail in in this industry and i think one of the best takeaways was that it's easier to pick a value stock especially probably for us practitioners it's easier to pick a value stock than to pick a value investor these days so that was quite interesting and it was great you know having you especially having charlie monger boss overlooking was there in your library i assume his partner is probably nearby and so in the name of the cfa society mexico we'd really like to thank you for your time and insights
Warrenthank you javier i really enjoyed the session i i'm sorry my answers tend to be long-winded so we don't get a chance to go into too many areas but hopefully we can repeat this at some point and i look forward to the continued dialogue thank you
Questionerokay would be most delightful to have you back all right thank you bye thank you thank you