Editor's note: This is Pro Strategy, a column on how to use the philosophies of the smartest minds on Wall Street to generate quality investment ideas.
Billionaire Charlie Munger is one of the most celebrated investors in the world and was an essential partner in Warren Buffett's success. How can we learn from his wisdom and apply his investment philosophy to a current stock?
Before becoming the vice chairman of Berkshire Hathaway, Munger had quite the track record himself. From 1962 to 1975 Munger's investment partnership generated 20 percent annual returns versus the S&P 500's 5 percent.
CNBC Pro researched Munger's strategy using previous media interviews, input from a well-known hedge fund manager and transcripts of annual meetings. We then evaluated a current stock's prospects using his framework.