Charles Thomas Munger (January 1, 1924 – November 28, 2023) was an American businessman, investor, and philanthropist. He served as vice chairman of Berkshire Hathaway and was Warren Buffett's closest partner for over five decades. Munger was renowned for his multidisciplinary approach to investing, advocating for the use of mental models from various fields including psychology, economics, physics, and biology....
"Our favorite holding period is forever. We are satisfied owning wonderful businesses at reasonable prices. To us, selling is an admission of an earlier mistake."
Selling should only happen when the original thesis is broken.
Read Full Analysis →"If you're not willing to react with equanimity to a market price decline of 50% two or three times a century, you're not fit to be a common shareholder."
Accept extreme volatility as the price of superior long-term returns.
Read Full Analysis →"I like people admitting they were complete stupid horses' asses. I know I'll perform better if I rub my nose in my mistakes. This is a wonderful trick to learn."
Honest review of failures improves future decisions.
Read Full Analysis →Charlie Munger has 3 key principles on selling & review. The most important one is "Selling is Last Resort" — Our favorite holding period is forever.
Charlie Munger applies selling & review through several key principles including "Selling is Last Resort" and "Hold Through Volatility". These principles guide practical investment decisions and have been tested across decades of market cycles.
Charlie Munger's approach to selling & review is distinguished by a focus on long-term thinking and fundamental analysis. With 3 specific principles in this area, Charlie Munger provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.
