Although many great lessons can be gleaned from the transcript of this talk, the big idea that I took away was the fact that Munger does not think in terms of intrinsic value today, which is an imprecise number and often triggers a hornet’s nest of debates regarding the discount rate to be used for valuing future earnings, or the perpetual growth rate (also known in finance parlance as “terminal growth rate”) to use at the end of the explicit forecasting period.
