Quote of the Day by Charlie Munger: ‘We have three baskets for investing…’

What Happened

Charles Munger, Berkshire Hathaway co-founder and Warren Buffett's longtime partner, advocated investing only in businesses one understands. His three-basket approach categorizes investments as yes, no, or too difficult to comprehend. Munger emphasized understanding business mechanics, intrinsic value, management quality, and fair pricing before investing. The duo transformed Berkshire into a multi-billion dollar empire, averaging 20% annual gains from 1965-2022.

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