You are receiving this email because you signed up to receive our free e-letter Skousen Investor Cafe, or you purchased a product or service from its publisher, Eagle Financial Publications. [Skousen's Investor CAFE] [Forecasts & Strategies]( [Fast Money Alert]( [Five Star Trader]( [Home Run Trader]( [TNT Trader]( One Quote Made Warren Buffett the Worldâs No. 1 Investor By Mark Skousen
Editor, [Forecasts & Strategies]( 11/30/2023 Sponsored Content [Don't Become Another "Hold And Hope Disaster"]( What you're about to see has worked so well that it's delivered a 97%-win rate through every market crash and downturn over the past 20 years. [Watch this tell-all interview!]( "Berkshire Hathaway could not have been built to its present status without Charlie's inspiration, wisdom and participation." -- Warren Buffett Charlie Munger, Vice Chairman of Berkshire Hathaway and Warren Buffettâs sidekick for more five decades, died this week at the age of 99. He was hoping to celebrate his 100th birthday on January 1, 2024. Munger was always a delight to listen to at the annual Berkshire Hathaway shareholder meetings in Omaha. My son, Todd, and I attended the 50th anniversary meeting in 2015. I quote Munger nine times in âThe Maxims of Wall Street,â but one quote stands out as the key formula that made Warren Buffettâs investment company the No. 1 most successful money manager in the world: âA great business at a fair price is superior to a fair business at a great price.â (p. 37) When Munger offered that advice, Buffett was using a different formula -- focusing on struggling companies that were selling at a bargain price compared to their book or net value. Such an undervalued stock can be compared to a discarded cigar butt, which has one more puff left. In his 1989 shareholder report, Buffett called it his âcigar buttâ technique. He made his first million using this approach, but after talking to Charlie Munger, decided there was a better way. âItâs far better to buy a wonderful company at a fair price than a fair company at a wonderful price,â he said. âCharlie understood this early: I was a slow learner. But now, when buying companies or common stocks, we look for first-class businesses accompanied by first-class managements.â Indeed, that is the case when you look at Berkshire Hathawayâs portfolio, including Apple, Amazon, Coca Cola, Bank of America, Chevron, Visa, MasterCard and the privately held GEICO. [Ph.D. Economist Releases 'Biden Disaster Plan']( The next two years could be ârough for investors.â But this Top 20 Living Economist says three stocks could rise 10X... thanks to Bidenâs bungling. [Go here]( for his stunning prediction â in what he's calling The Biden Disaster Plan. Why Buy-and-Hold and Dollar-Cost Averaging Work When youâre a long-term investor, Mengerâs advice makes sense. You want to be invested in well-managed companies that canât help but grow over time. Buffett states, âCharlie Munger and I have not learned how to solve difficult business problems. What we have learned is to avoid them.â (âMaxims of Wall Street,â p. 166) J. Paul Getty, Americaâs first billionaire, adopted the same formula years earlier. He warned, âIt is surprising that so many investors buy stocks in dying industries and ignore tempting opportunities to buy into companies that cannot help but burgeon as time goes on.â (p. 117) For long-term investors, he advises, âThe seasoned investor buys his quality stocks when they are priced low, holds them for the long-pull rise and takes in-between dips and slumps in his stride.â (p. 16) Buffett and Munger: Strange Bedfellows in Politics Another interesting feature of the Buffett -- Munger relationship was that Buffett was a life-long Democrat while Munger was a long-time Republican. Working together resulted in more pragmatic attitudes toward the role of government in our society. I was glad to see Munger come out in favor of Singaporeâs Medisave program as an alternative to Obamacare. Singaporeâs healthcare program uses market techniques such as health savings accounts to keep the cost of medical expenses down while maintaining quality control. As a result, Singapore spends only 5% of its GDP on healthcare, while the United States spends 18%. Meanwhile, Singapore citizens live longer on average than Americans. Some Other Great Munger Quotes Here are a few other great Munger quotes from the Maxims: âTo be a successful investor you must draw from many disciplines.â (p. 68) Note: We underestimate the value of a good liberal arts education. The great thing about investing in individual stocks is that it forces you to learn a lot about how the world works. Warren Buffett resisted investing in technology stocks because he said he knew finance (banking, insurance, etc.) but not technology. As a result, he missed out on beating the market until he finally invested in Apple (now his largest position). âNo pilot, no matter how great his talent or experience, fails to use his checklist.â (p. 71) Note: You canât be a successful investor without a sound plan of action. Set it up and then follow it. Most investors lack a consistent program of successful investing. âIn my whole life, I have known no wise people who didnât read all the time -- none, zero.â (p. 118) Note: As I tell my Chapman students, most young people look, but they donât read anymore. If you want to make a difference in life, start reading regularly. Last, but not least: âTrying to minimize taxes too much is one of the great causes of really dumb mistakes in investing.â (p. 146) Note: I canât tell how much money Iâve lost over the years investing in tax shelters. I would have been better off ignoring the tax consequences and focused on the investment itself. You can see why I encourage all my readers and subscribers to read regularly from âThe Maxims of Wall Street,â now in its 10th edition. As Dennis Gartman wrote to me, âItâs amazing the depth of wisdom one can find in just one or two lines from your book. I have it on my desk and refer to it daily.â [Warning: America on the Brink of Financial Crisis!]( Traders who make money understand the need to optimize their trading strategy to capitalize on every opportunity that comes their way. [Count On This Dual-Patented A.I. Trading Tool (Learn for FREE Now) >>]( âBest holiday gift for my clients!â What better gift to give your friends, relatives, clients and your favorite stockbroker than the new 10th edition of âThe Maxims of Wall Street.â I autograph and number each copy. Iâve added some 20 new quotes to the new edition, including the following: âForecast a number or a date, but never both.â -- Jason Zweig, Wall Street Journal âThe first rule of racing is to break off the rearview mirror.â -- Italian race car driver âScared money donât make money.â -- Billy Napier, football coach âThe most important quality for an investor is temperament, not intellect.â -- Warren Buffett âNever bet on the end of the world. It only comes once, which is pretty long odds.â -- Arthur Cashin, New York Stock Exchange floor manager âCharts are great for predicting the past.â -- Peter Lynch âThere are two kinds of people who lose money: those who know nothing and those who know everythingâ -- Henry Kaufman (âDr. Doomâ) âIf you mix your politics with your investment decisions, youâre making a big mistake.â -- Warren Buffett âThe buyer needs one hundred eyes, the seller not one.â -- George Herbert âEfficient markets exist only in the textbooks.â -- Warren Buffett âSuccess is never final, and failure is not always fatal. It is courage that counts.â -- Sam Rayburn âMaximsâ has been endorsed by Warren Buffett, Jack Bogle, Kim Githler, Alex Green, and Bert Dohmen and reviewed favorably by Barronâs. It makes an ideal gift during the holidays for family, friends, clients and your favorite stockbroker or money manager. As Rodolfo Milani states, âI find them to be ideal gifts for my best clients.â âMaximsâ at a Super Discount Despite rising inflation and shipping costs, Iâve managed to keep the price of the new 10th edition to only $21 for the first copy, and only $11 for all additional copies. And if you order an entire box (32 copies), the cost is only $327 (around $10 each). I pay all shipping costs if mailed to any of the 50 states. Plus, I autograph and number each copy. A real keepsake! To order your copies, go to [www.skousenbooks.com](. Do You Live in Central Florida? FREE LECTURE -- University Club of Winter Park, Florida, Monday, Dec. 4: This coming Monday, Iâll be speaking on âIt All Started with Adam: Would Adam Smith, the founder of free-market capitalism, be happy or distraught if he returned today for his 300th birthday?â The answer may surprise you. The University Club is located at 841 N. Park Ave. in Winter Park. Refreshments at 3:30 p.m., lecture at 4 p.m. This lecture is open to the public, without charge. Please join me and say hello. Good Investing, AEIOU, [Mark Skousen] Mark Skousen
Doti-Spogli Endowed Chair of Free Enterprise, Chapman University
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[FreedomFest]( [You Blew It!] Donât Miss Tonightâs California Versus Florida DebateÂ
By Mark Skousen
Editor, [Forecasts & Strategies]( âBy the collision of different sentiments, sparks of truth strike out, and political light is obtained.â -- Benjamin Franklin I hope you will all watch the special debate tonight between the Florida governor Ron DeSantis and California governor Gavin Newsom from 9 p.m. -- 10: 30 p.m. ET on Fox News, hosted by Sean Hannity. It is rare today to see a civil debate on the cable news networks, but somehow Sean Hannity has pulled it off. Tonight's debate will be especially worth watching because both governors are potential future presidents of the United States. The political philosophy between the two governors couldnât be more different. I know, because my wife and I have homes in both states, and we can see the difference. We teach at Chapman University in California from January to mid-May, and we reside in Florida during the summer and fall. There are some similarities. Our homes are located in Orange County, California, and Orange County, Florida. Thereâs Disneyland in Anaheim and Disney World in Orlando. Both are famous for warm sunny days, although California has dry heat and Florida has its humidity. And both have fabulous beaches, although Californiaâs oceanside is cold and Floridaâs is at least 20 degrees warmer. There are big differences between the two populous states in terms of taxes, business environment, crime, homelessness and culture, and I suspect thatâs where the big debate will be and why people are leaving California and moving to Florida. Iâll have a full report on the debate in my Monday hotline. Stay tuned. About Mark Skousen, Ph.D.: [Mark Skousen]Mark Skousen is an investment advisor, professional economist, university professor, author of more than 20 books, and founder of the annual FreedomFest conference. For the past 40+ years, Dr. Skousen has been investment director of the award-winning newsletter, [Forecasts & Strategies](. He also serves as investment director of four trading services: [TNT Trader]( [Five Star Trader]( [Home Run Trader]( and [Fast Money Alert](. About Us:
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