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
- Warren Buffett Buys More IBM: Should You Do the Same?
- Time to Take Profit in Berkshire Hathaway Stock?
- 13 Priceless Buffett and Munger Quotes From the 50th Anniversary Meeting
- Warren Buffett Names His 5 Factors For Investing Success
- 9 Brand New Warren Buffett Quotes From the 50th Anniversary Meeting
- 3 Things Warren Buffett Says He Will Never Do