A popular quote once said, “show me your friend, and I will tell you who you are”, well when we see Warren Buffett, we expect no less than Charles Munger, another successful Wall Street investor.
Who is he?
Charles Munger is the vice-president of Berkshire Hathaway and right-hand man of Warren Buffett. He is an American billionaire investor with a net worth of $2.5billion. Like Buffett, he’s a value and pragmatic investor and an active philanthropist. Charles has been instrumental in the growth of turning Berkshire Hathaway into the $700 billion holding company it is today.
Charles first started out in a real-estate development deal, then after making 400% profit and his first million dollars, founded his own investment company. There, he demonstrated his keen investment sense.
Charles’s Investment Strategy
- Charles thrives on a value investing strategy that focuses on quality over quantity.
- He is a core driver for investing in companies that maintain industry-leading standards and ethical business practices.
- Charles identifies himself as an enemy of excessive diversification. To him, a concentrated portfolio will yield better returns than a highly diversified portfolio.
One of his most popular investment wisdom is “Good businesses are ethical businesses. A business model that relies on trickery is doomed to fail.”
Here are the top stocks in Charles’s portfolio
- Micron (MU): Micron is an industry leader in memory and innovative solutions. With its global products, Micron & Crucial, it is changing how the world uses information.
- Zoom (ZM): Pandemic darling stock that provides video-telephony and online chat services. The California-based company’s product is used for video communications, and messaging for virtual meetings and events.
- Berkshire Hathaway (BRK.B): Charles is the vice-chairman of the holding company, alongside Warren Buffet, who is the chairman. Berkshire Hathaway is among the top 15 most popular stocks hedge funds have.
- Costco (COST): It’s no news that Charles’s is not an admirer of internet stocks like Amazon. He is a strong believer of Costco, the fifth largest retailer in the world with over 800 locations. Though it has a 24.99% decline since the year began, it has delivered good
- American Express Company (AXP): This investment was made by both Charles & Warren and it has been one of the biggest success stories.
- Alibaba (BABA): Alibaba is a Chinese multinational company specializing in e-commerce, retail, internet and technology.
So, which of these stocks interest you or will you be buying? Let us know in the comment section below.