Headed back up, page-74

Hi Nasa,

I've studied Buffett, Munger and Graham in a fair bit of detail over the years and I would have to say, my take is that when he refers to long-term, value investing, he is talking about stocks with a history of solid earnings and an economic moat of some sort that for whatever reason have been sold off (e.g. GFC, Dot Com bust, 1987 etc). It's my understanding that this is where funds like Berkshire Hathaway et.al make all the really big money and I can only agree with that theory, based on experience, i.e. the GFC was without a doubt the biggest wealth generating experience I have lived in, due to the crazy valuations being offered on stocks with a history of earnings, pricing power etc

That's not to say that MRF doesn't offer something worthwhile at the current level, however I can't agree that they could be spoken of in the same breath as the likes of Woolworths, Johnson & Johnson, Boeing, Walmart, Coke - the sorts of stocks that Buffett is referring to.