Munger, a graduate of Harvard Law School, was practicing law in Omaha, Nebraska when he met Warren Buffett, who would eventually convince him to change careers. A master of the craft of value investing, Munger is known for his breadth of knowledge inside and outside the scope of investing, sharp wit, and a high quotability factor. Buffett frequently credits Munger for expanding his investing horizons by convincing Buffett to shift his focus from a pure deep value, Benjamin Graham-style approach to one focused on investing in undervalued businesses with economic moats.
One of Tom Gardner's favorite Munger principles is the notion -- first popularly advanced by 19th century mathematician Carl Jacoby -- that to get closer to the right answer, scholars should "invert, always invert." For Munger as an investor, this means stacking up all the reasons you like a stock. But then, before considering purchase, invert -- list all of the reasons to dislike that same stock. Munger believes this more scientific approach will force you to see things as they really are.
Related Fool Articles
- Charlie Munger's Thoughts on Just About Everything
- Munger Goes Mental
- Charlie Munger's Advice for Striking it Rich
- Always Invert: Wisdom from Charlie Munger
- Berkshire 2010: Goldman, Tattoos, and Sissies
- Multidisciplinary mental models
- Wesco Financial
- Berkshire Hathaway
- Warren Buffett
- Value investing
- Economic moat
Recent Mentions on Fool.com
- Munger's Advice on Shamans, Humility, and Attention Spans
- Is This Warren Buffett's Next Cinderella Story?
- 3 Warren Buffett Habits We Should All Adopt
- What's Wrong With Finance
- Biglari Holdings vs. Groveland Capital: Whose Alamo Is It?
- 33 Amazing Numbers From Berkshire Hathaway's Golden Anniversary Shareholder Letter