🎙️ Interview Alex Morris
Buffett and Munger unscripted
You don’t know Alex Morris yet?
Today he published his book ‘Buffett and Munger Unscripted’.
It breaks down all Annual General Meetings of Berkshire Hathaway.
Let’s see which great investment lessons Alex Morris has for us.
Many of you have asked about this, so I’m considering launching an investment fund based on the principles I’ve 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 ‘Never Sell’ 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, I’m closer to the first bucket, but I also appreciate the logic of the second bucket (particularly at the extremes).
In one sentence, I’d say I’m 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.
What’s the essence of your excellent book “Buffett And Munger Unscripted”?
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 Buffett’s shareholder letters.
I wanted to organize and highlight the most valuable insights from Buffett and Munger’s answers, creating a clear and accessible resource for readers.
In writing ‘Unscripted’, I reviewed every Berkshire meeting from 1994 to 2024, covering more than 1,700 questions over 31 years.
Buffett and Munger’s answers are full of valuable lessons about investing and business. This book aims to share those lessons in a way that’s 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.
What’s the best investment decision you’ve 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.
What’s the worst investment decision you’ve 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 company’s margins and FCF.
The stock has more than tripled since I sold it – and I only sold it 18 months ago.
What’s a famous investment rule you don’t 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 isn’t 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 couldn’t 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 it’s 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!
I’m currently reading ‘Buffett’s Early Investments’ by Brett Gardner and ‘The Complete Financial History of Berkshire Hathaway’ by Adam Mead.
I’m enjoying both books and would recommend them.
What’s 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.
What’s 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: That’s an easy one - ‘Buffett And Munger Unscripted’ 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!