Here's How Charlie Munger's Final Investment Move Doubled His Money, Reveals His Close Friend Li Lu

Just before his death, investing legend Charlie Munger made a contrarian bet that resulted in doubling his money, as revealed by his close friend Li Lu in an interview with Chinese social network Zhenge Island.

What Happened: Munger, who was Warren Buffett‘s business partner and vice chairman of Berkshire Hathaway for over four decades, invested in a stock that was neither popular nor politically correct. This, however, did not deter the seasoned investor.

Li Lu, the founder of Himalaya Capital Management and a close friend of Munger, shared that “The week before he died, this stock had doubled from the time he started investing to that time.” The name of the stock was not disclosed by Li.

“There was a stock that everyone disliked, and it might not be particularly politically correct,” Li added saying that it didn’t stop Munger from studying the company and buying its shares, as reported by Insider.

Li also said that the stock remained “in the Munger family portfolio” and was “still performing very well.”

Also Read: This Famous Piece Of Wisdom From Charlie Munger Can Go A Long Way In Investing — And In Life, Say Investment Experts

Li also shared an anecdote about a lunch he had with Munger and Elon Musk, where Musk attempted to win over Munger’s investment.

He highlighted the stark differences in risk appetite between the two, with Musk willing to embark on ventures with only a 5% chance of success, while Munger required an 80% chance of success.

Munger passed away in late November 2023, just shy of his 100th birthday.

Why It Matters: Munger’s final investment move showcases his contrarian approach to investing, which often involved betting against popular opinion.

This strategy, while risky, has proven successful for Munger throughout his career, and this last investment was no exception.

His approach to risk, as contrasted with Elon Musk’s, provides valuable insight into the mindset of one of the most successful investors of our time.

Read Next

Secret To Success? Get Toxic People Out Of Your Life — Fast, Says Billionaire Charlie Munger