University of Berkshire Hathaway: 30 Years of Lessons Learned from Warren Buffett & Charlie Munger at the Annual Shareholders Meeting

by Daniel Pecaut

Munger noted that many analysts look at huge bodies of past data looking for clues, which results in enormous misspent effort (generally proportional to the IQs of those doing it). True investing is really more like betting against a parimutuel system, trying to find a 2-to-1 shot that pays 3 to 1. Value investing is looking for a “mispriced gamble.”