Charlie Munger: Focus Investing – One Way To Beat The Market – ValueWalk Premium
Charlie Munger, Charles Munger, Buffett, investing, valuation, history books, reading, research, value investing, Daily Journal Corporation, Berkshire Hathaway, BRK, Wesco Financial Corporation, conglomerate, valuewalk, famous Investor, businessman, philanthropist, Poor Charlie's Almanack, writing, concentrated vs diversified investing

Charlie Munger: Focus Investing – One Way To Beat The Market

One of our favorite investing books is Poor Charlie’s Almanack by Peter Kaufman, and there’s one passage in the book in which Charlie Munger explains how he and Buffett use ‘focus investing’ to beat the market, saying:

Q1 hedge fund letters, conference, scoops etc

Charlie Munger

“Our investment style has been given a name-focus investing-which implies ten holdings, not one hundred or four hundred.

The idea that it is hard to find good investments, so concentrate in a few, seems to me to be an obviously good idea. But ninety-eight percent of the investment world doesn’t think this way. It’s been good for us-and you-that we’ve done this.

What’s funny is that most big investment organizations don’t think like this. They hire lots of people, evaluate Merck vs Pfizer and every stock in the S&P 500, and think they can beat the market. You can’t do it.”

For more articles like this, check out our recent articles here.

Article by The Acquirer's Multiple

Saved Articles