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Charlie Munger and Warren Buffett, with hand raised, in 2006. Munger persuaded Buffett to focus on buying ‘wonderful businesses at fair prices.’ Photo: David Silverman/Getty ImagesIf you want to invest like Charlie Munger , you’re late to the party. The investor’s genius in spotting what’s become known as the “quality factor”—buying good companies—made a ton of money for him and business partner Warren Buffett . Nearly 50 years on, it might not be such a great time to copy his strategy. For those who missed the late Munger’s brilliance, he’s the one who persuaded the billionaire Buffett to shift Berkshire Hathaway ’s focus from “cigar butt” value stocks—bad companies that no one else wants, and so are cheap—to buying “wonderful businesses at fair prices.”
Persons: Charlie Munger, Warren Buffett, Munger, Buffett, David Silverman, you’re, what’s, , Berkshire Hathaway ’ Organizations: Berkshire
Oil-and-gas companies have built up a mountain of cash with few precedents in recent history. Wall Street has a few ideas on how to spend it—and new drilling isn’t near the top of the list. Many companies are cutting costs and raining cash on stock pickers like Berkshire Hathaway ’s Warren Buffett , who believe the world’s thirst for oil will continue for years, if not decades, to come. The promise of money returned to shareholders helped turn energy shares into some of the few bright spots in a dark moment for markets last year, fueled by commodity prices that skyrocketed after Russia’s invasion of Ukraine.
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