A few days ago, in his annual letter to the shareholders of Berkshire Hathaway, Warren Buffett remembered his long-time business partner, Charlie Munger. Munger, who died last November at the age of 99, wasn’t as famous as Buffett, but he was just as important to the company’s success. Our latest Instaread looks at his investment philosophy.
Hands-on Investing
Munger rigorously researched the companies he invested in. His first requirement was that the business be simple and transparent. He treated financial reports skeptically, recasting figures and assessing the abilities and trustworthiness of upper management. He made sure a business had intrinsic worth and thoroughly understood its competitive advantage and durability. With all this work on the front end, sitting on his investments for a long time was the easy part.
