Charlie Munger Explains Why You Only Need Three Stocks To Get Rich



Warren Buffett and Charlie Munger discuss investing strategies and principles.

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44 Comments

  1. How to win the stock market. Be old. Be invested in anything at the end of ww2 in the late 40s and 50s when the US was the only world power left largely untouched and enjoyed 40 years of uninterrupted prosperity and growth. There was no global economy until the 80s.

  2. Coca Cola’s stock price has risen 245.21% in the last 30 years. The S&P 500 has risen over 1000% in the last 30 years. So, diversifying did 5x better than picking one “super stock.” When you’re a super rich guy who is extremely well connected, it’s easy to know when things will shift so you can take advantage.

  3. Get a load of that guy putting Big Pharma on an alter and positively gushing about how wonderful and perfect they are (03:47). Ya just know that twit prayed to a Tony Fauci bobble head before bedtime during the Covid Hysteria and had a poster of Bill Gates on the wall over his bed. Who would like to remind him of Vioxx, or OxyContin, or Thalidomide, or Baycol, or the multi-billion dollar lawsuits that periodically are aimed at Pfizer, J & J, GlaxoSmithKline, Purdue Pharma, etc. ad nauseam?

    Please, somebody explain to me the psychosis that came to afflict so many of the population that all of a sudden Big Pharma were seen as miracle workers actually interested in our health and welfare instead of increasing shareholder value. What was it that turned these people into fawning needle Nazi's demanding all ought be lined up and forced to take their products? Somebody tell me how this happened to a generation that was fond of saying "don't trust anybody over 30" and "question authority." What the hell happened to those people, and many more to boot?

    I'll never understand, I'll never forget, and I'll never forgive.

  4. i watched this video a few years back and take it to heart. i found 1 stock and its doing pretty well! it took me a long time to find it but it was exactly as what they said. Now the trick is finding those 2. This is a really good advice. I never believed in diversifying stock. The trick though is finding those gems.

  5. Highly recognizable about Coca Cola is the amount of well known brands we buy under Coca Cola and second to that being Amazon being a conglomerate in the space of tech/shipping/shopping. The dominated space with revenue streaming avenues from products that are useful, well designed, repeatedly bought/disposable and carries over to our lives will always outbeat a small corp just advertising in one mini product. Merch for shoes is not as prime as Nestle. Apple at least appeals to the mass because of global expansion. McDonald's does NOT have many brands under them regardless of their asset making machine. I would vouch for hotel brands too but those hotel investment funds, trusts, holding companies don't own much "space" in the way Coca Cola does as every vending machine at least has a coke bottle

  6. This is old school as one can see watching how these two fellas are so young in the video. Their advice was REPLACED. Just anchor at least 50% in SP500 inexpensive index fund, and you will see a doubling in value (10% per year) every (7) seven years. This has been happening for 100 years.

  7. Over the past 30 years (since this interview), Microsoft compounded at roughly 16.0% annually, while Gillette/P&G (8.7%) and Coca-Cola (7.3%) delivered steady growth that trailed the S&P 500’s 10.4% annualized return.

  8. He did say he'd prefer to understand the business himself even before relying solely on competent leadership. That's why he'd pick 3 of the companies he held at that time. Know what you're investing in.

  9. Restricting yourself to 3 mutual funds is fine – but 3 stocks -too risky. one could easily fail. How many people are lucky enough to find 3 fabulous businesses? Not many.. . Yes people do over diversify and should concentrate on their best ideas. But there is also risk of being over concentrated. To tell the average investor there should only have 3 stocks is irresponsible. Berkshire has many stocks in their public and private portfolios

  10. Investing partly for fun with learning and watching world upgrade Is my aim now, sure profit IS profit, but Im not economy man, later through years myself ends with cca 3-4 etf and 4-5 stocks , 6 months are not 10 and not 10 or 20 years. Thats matter fór myself . Off

  11. Cola Cola, Sees Candy = sugar. Makes people fat with diabetes. Rots your teeth, so expensive dental bills. Thanks a lot for the recommendations. Should I invest in tobacco companies and get rich? People get lung problems and die from cancer due to smoking. Should I buy into Costco? Buy 500 rolls of toilet paper on sale. No place to store it. Takes 10 years to go through the rolls. My brother bought Wheaties on sale. He brought home so many boxes, we all got sick and tired of eating Wheaties. He stored the boxes on basement shelves. The mice got into the boxes and enjoyed Wheaties, the Breakfast of Champions. That is where Mighty Mouse got his strength.

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