CNBC Pro

Pro Strategy: How to invest like Charlie Munger

Share
Charlie Munger, Berkshire Hathaway
Lacy O’ Toole | CNBC

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 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.


More In Investing

CNBC ProHere’s why Tom Lee says energy stocks still have the ‘most upside’ of any sector
CNBC ProBitcoin tests a key level as the cryptocurrency falls below $33,000
CNBC ProHere are Bank of America’s top internet stock picks for the second half