Nike Stock And Its Unbelievable Record Of Long-Term Growth

I was going through some old notes taken by investors that had visited California for Charlie Munger’s old meetings with WESCO shareholders that he would host annually before Berkshire Hathaway fully took it over, and one of my favorite back-and-forth exchanges occurred when an investor asked Munger why the philosophy of Benjamin Graham—namely, buying mediocre companies selling at deep discounts—never caught fire with him.

In his reply, Munger said it would quickly grow tiring “dealing in crap” and it would be much more fun owning something with a strong franchise value that retains profits and has the ability to permanently charge premium prices. This part is the critical reason why Coca-Cola, Colgate-Palmolive, Clorox, … Read the rest of this article!