in his early days, Buffett made is money by buying "cigar butts", the analogy being that you can pull a cigar out of the ashtray for free and get one more puff.

in his early days, Buffett made is money by buying "cigar butts", the analogy being that you can pull a cigar out of the ashtray for free and get one more puff. These were trash companies that Buffett could wring for one more dollar before they inevitably expired. The problem was that it didn't scale. Munger revolutioned Buffetts method by essentially teaching him to buy great companies are fair prices rather than fair companies at great prices.