Investment Concept

Cigar Butt Investing

First mentioned: 1991Cited in 4 letters4 key references

Buying cheap businesses — "cigar butts" — at very low prices, hoping to profit from a final puff (asset liquidation) rather than future earnings. Buffett abandoned this Grahamian approach in the mid-1970s in favor of buying "wonderful businesses at fair prices."

Letters Mentioning “Cigar Butt Investing

YearRelevance
1962first
1964key
1965key
1985key