Seeking Alpha

Eric Sprague  

ABOUT
I'm an individual investor heavily influenced by Warren Buffett and Charlie Munger.

Munger's 1994 USC Business School Speech is something I think about a lot:

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Over the long term, it's hard for a stock to earn a much better return than the business which underlies it earns. If the business earns 6% on capital over 40 years and you hold it for that 40 years, you're not going to make much different than a 6% return—even if you originally buy it at a huge discount. Conversely, if a business earns 18% on capital over 20 or 30 years, even if you pay an expensive looking price, you'll end up with a fine result.

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Another very simple effect I very seldom see discussed either by ...More
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  • Interests: Stocks - long
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BNSF And Union Pacific Have Intermodal Advantages $UNP, $BRK.B http://seekingalpha.com/a/1dgq9 Jul 10, 2014
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