"Mimicking the herd invites regression to the mean."
Charles Thomas Munger - (born January 1, 1924) American business magnate, investor, lawyer and philanthropist.
Net Worth - $1.28 Billion
Charlie Munger is often referred to as 'the brains behind Warren Buffett' and whilst this may appear to be somewhat derisive toward the Oracle of Omaha there is some truth in it. Munger is largely responsible for convincing Buffett to move away from the 'Deep Value' investing approach pioneered by Ben Graham in favour of pursuing the 'Franchise Value' approach. Charlie simply calls this 'Sit on your ass investing'. This approach basically involves finding companies which possess a durable competitive advantage and buying them at a reasonable price, one then simply holds ownership in these companies indefinitely allowing them to compound over time and thus avoiding the frictional costs and capital gains taxes incurred by those who buy and sell more frequently. This approach has yielded very powerful results for Munger, Buffett and their company Berkshire Hathaway.
According to table 5 contained in the Buffett essay 'The Superinvestors of Graham-and-Doddsville' Munger's investment performance whilst running his partnership from 1962-1975 achieved a compound annualized growth rate(CAGR) of 19.8% vs 5% on the DJIA(Dow Jones Industrial Average).
Below I have provided an assortment of content to learn from the wisdom of Munger. I recommend further study of his writings, insights and ideas. They are a constant source of inspiration and motivation to me and I hope you will find them as valuable as I do.
To find out what stocks Charlie Munger holds in his portfolio see here