Investment Advice from Charlie Munger
Warren Buffett didn’t really hit his stride until he met his investment partner Charlie Munger. He is famous for converting the best investor in history from last puff cigar butt value investing to buying great franchise businesses for the long-term. Here are some general investment tips from Charlie:
-Bet very seldom
-You have to figure out where you’ve got an edge. And you’ve got to play within your own circle of competence
-Bet big when you have the odds in your favor and know something is mis-priced. Berkshire, all the billions of gains, top 10 insights account for most of it
-What determines behavior are incentives of the decision maker. Management matters
-Ultimate no-brainer, will find a few times in a lifetime, huge untapped pricing power they’re are not using
-Look for superb business hidden inside a bad mess, once you cut out the folly, big winner. (Geico)
-”Good jockeys will do well on good horses, but not broken-down nags.”