Have a concentrated portfolioHaving a concentrated portfolio means investing in a relatively small number of stocks as opposed to a larger number for the sake of diversity.
Buy quality stocksSucceeding with a concentrated portfolio relies on one thing: buying quality stocks.
A quality stock is a company that's able to consistently post profits and returns on capital.
Apple and Alphabet would be considered consensus quality stocks, and Munger is well known for his fondness of shares of Coca-Cola, another stock traditionally classified as quality.
Buy stocks with good management teamsOne element of a company that makes it "quality" is its management team.
Persons:
Charlie Munger, Bill Ackman, Michael Baron —, We've, Baron, Ackman, Ron Baron, Warren Buffett, Munger, he's, they've, They've
Organizations:
CNBC's, Alpha, Pershing Square Holdings, Universal Music, Morningstar, Partners Fund, Nasdaq, Berkshire Hathaway, Apple, Coca
Locations:
Munger, Ackman, Berkshire