You might not think a movie about robbing banks illuminates some of the fundamentals of value investing, but then again, you might not have seen Hell or High Water
. The movie tells the story of two brothers who traveled around rural Texas robbing small town banks early in the morning to keep their family property out of foreclosure. It's not about the intricacies of their heist, it's the simplicity of the smaller banks they robbed. It's only when they got greedy, going after a bigger bank, that they got caught.
We think of Charlie Munger
), the Vice-Chairman of Berkshire Hathaway, who taught us that "competition is the enemy of competence." You see, while the brothers successfully found no competition in the smaller rural banks, they ran into trouble when attempting to rob a busy bank later in the day with customers who all had their own guns. They had lost their gun-powered moat. Continue Reading »