đď¸ Interview Alex Morris
Buffett and Munger unscripted
You donât know Alex Morris yet?
Today he published his book âBuffett and Munger Unscriptedâ.
It breaks down all Annual General Meetings of Berkshire Hathaway.
Letâs see which great investment lessons Alex Morris has for us.
Many of you have asked about this, so Iâm considering launching an investment fund based on the principles Iâve shared with you over the years.
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How would you describe yourself as an investor?
Alex Morris: At the extremes, I think there are two types of investors:
A price agnostic âNever Sellâ investor: Focusing on business quality, management quality, with little to no regard for the current valuation and what it suggests about forward expectations / implied rates of return
A pure value investor: Waking up each day, ranking a universe of stocks on measure like expected return, and then reallocating their portfolio accordingly
As I consider each approach, Iâm closer to the first bucket, but I also appreciate the logic of the second bucket (particularly at the extremes).
In one sentence, Iâd say Iâm a long-term investor who hopes to own high-quality businesses with best-in-class management teams priced to generate reasonable rates of return for owners.
Buffett tries to buy wonderful companies at a fair price. Which steps do you follow to make investment decisions?
Alex Morris: The three steps Warren Buffett uses resonate with me:
Find wonderful businesses
With highly capable management
Trading at fair valuation levels
I wrote about my investment philosophy here.
My approach typically led to a combination of long-term (multi-year) holding periods and concentration.
Whatâs the essence of your excellent book âBuffett And Munger Unscriptedâ?
Alex Morris: For decades, the Berkshire Hathaway annual meeting was an in-person event with no video recordings.
That changed in 2018 when Berkshire Hathaway released the annual meeting videos dating back to 1994.
My goal with this book was to do something similar to what Larry Cunningham achieved with Buffettâs shareholder letters.
I wanted to organize and highlight the most valuable insights from Buffett and Mungerâs answers, creating a clear and accessible resource for readers.
In writing âUnscriptedâ, I reviewed every Berkshire meeting from 1994 to 2024, covering more than 1,700 questions over 31 years.
Buffett and Mungerâs answers are full of valuable lessons about investing and business. This book aims to share those lessons in a way thatâs easy for everyone to understand.
My goal is to share Buffett and Munger's timeless wisdom with the next generation.
To give back, I will donate 50% of my net proceeds to GLIDE, a charity that Buffett supported for many years.
Whatâs the best investment decision youâve ever made?
Alex Morris: I bought Microsoft in 2011 at around $25 per share, a position I still own most of today.
More recently, I bought Netflix in January 2022 and April 2022, which has worked out nicely.
Whatâs the worst investment decision youâve ever made?
Alex Morris: Three of my most notable investment mistakes are:
JCPenney
IBM
Kraft Heinz
More recently, I sold Spotify at $147 per share, right before a significant inflection in the companyâs margins and FCF.
The stock has more than tripled since I sold it â and I only sold it 18 months ago.
Whatâs a famous investment rule you donât agree with?
Alex Morris: Every asset has a price.
I think a price-first investment approach puts the cart before the horse, particularly for a long-term investor who intends to own (hold) companies.
Which key characteristics should a good investor have?
Alex Morris: Temperament.
Most people can learn the basic math and reasoning needed to evaluate a company. That part isnât too hard.
The real challenge is having the right mindset. Many investors struggle to stay calm and make good decisions when the stock market, or "Mr. Market," has big mood swings.
If you were obliged to invest all your investable assets with one person and you couldnât choose Warren or Charlie, who would you pick?
Alex Morris: An investor like Chuck Akre, François Rochon, or my good friend Franciso Olivera.
What would you do differently if you could start all over again today?
Alex Morris: From an investment perspective, I would push myself to start covering a broader range of companies from a younger age (in terms of industry, company size, ..).
Knowledge tends to compound over time, so itâs best to build that foundation as soon as possible.
Warren and Charlie are known as vivid readers. How much do you read?
Alex Morris: With a ten-month-old son, not as much as I used to!
Iâm currently reading âBuffettâs Early Investmentsâ by Brett Gardner and âThe Complete Financial History of Berkshire Hathawayâ by Adam Mead.
Iâm enjoying both books and would recommend them.
Whatâs the best piece of advice for someone who will keep investing for the next 20, 30 and 40 years?
Alex Morris: Be curious and open-minded, while also recognizing the importance of incentives.
Both personally and professionally, surround yourself with people that you enjoy being with.
Whatâs your favorite quality stock right now?
Alex Morris: Two stocks that I find particularly intriguing at the moment are Fever-Tree and Dollar Tree
Just like you, I write about investing in my newsletter.
Any book recommendations to share with our audience?
Alex Morris: Thatâs an easy one - âBuffett And Munger Unscriptedâ of course. :)
You can find it at most major booksellers, but it varies depending on the geography.
If you cannot access the book on Amazon or through a local bookseller, please reach out to me on Twitter or via email.
Everything In Life Compounds
Pieter
Book
Order your copy of The Art of Quality Investing here
Used sources
Interactive Brokers: Portfolio data and executing all transactions
Finchat: Financial data
Thank you CQ!