Munger over Buffett: BYD over Blizzard

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Robert Wenzel on Charlie Munger investing while Warren Buffet munches on Dairy Queen Blizzard’s:

Below, I propose the notion that Charlie Munger is probably a better investor than Warren Buffett. WSJ steps up to the plate to back me up:

Charlie Munger — Berkshire vice chair and Warren Buffett’s longtime partner — knows a good thing when he sees it.

It was Munger who first learned of an obscure Chinese maker of batteries and automobiles called BYD Inc., several years ago and championed an investment in the firm. “BYD was Charlie’s idea,” Buffett told the Journal in a story back in May. “When he encounters genius and sees it operating in a practical way, he gets blown away.”

Judging by the return Berkshire has seen so far on BYD, Munger might not merely be encountering genius. He might be one. In 2008, Berkshire decided to invest $232 million for a 10% stake in BYD.

In his shareholder letter, Buffett reports that it now values that 10% stake at $1.99 billion, putting the value of that investment above other better-known Berkshire common stock holdings such as Johnson & Johnson, ConocoPhillips and U.S. Bancorp…

It should be noted that Munger was 84 years old when he discovered BYD.

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One Response to “Munger over Buffett: BYD over Blizzard”

  1. Nydra Says:

    Mr Buffett means well, but he doesn’t put his money where his mouth is. Omaha Public Schools needed some physical plant upgrades and maintenance but the bond issue included glass porticos, circle drives and other unnecessary extravagances. Buffett wanted the more expensive bond to pass so did he pony up and offer to pay the difference? No. He spent somewhere around $56,000 on an ad campaign with glossy brochures and yard signs touting ‘FOR THE KIDS” next to a big red check mark. So Buffett raised my taxes, in effect, to pay for his dream.
    Mr. Buffett thinks he pays too little in taxes but takes his capital gains away from the tax man by placing his assets inside a foundation. In Nebraska, we charge 7% over the 15% federal capital gains tax and our budget shortfall is 30 million this year. Had Buffett paid taxes before his donation, we would be flush with money.
    Obviously Buffett thinks he and Gates can do a better job of compassion with their ideas then the federal budget does. Yet he wants me to pay more in taxes. He means well, but is a confused old man.

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