archiveCharlie Munger

The Oracle of Omaha, Warren Buffett, is notorious for avoiding investments he doesn’t fully understand. Over the years, he’s skipped out on investing in tech stocks because of this. Not that this has kept him from building a substantial wealth — he’s got an estimated net worth of $154 billion. See More: Warren Buffett’s Top 4 Tips for Getting Richer High Yield Savings Offers Powered by Money.com - Yahoo may earn commission from the links above. Read Next: 3 Reasons Retired Boomers Shouldn't Give Their Kids a Living Inheritance (And...

Warren Buffett and Charlie Munger used concentrated stock positions to compound wealth. The methods ... More behind the strategy are examined along with data on the risks. (Photo credit should read JOHANNES EISELE/AFP via Getty Images)AFP via Getty Images Charlie’s portfolio was concentrated in very few securities and therefore his record was much more volatile but it was based on the same discount-from-value approach. He was willing to accept greater peaks and valleys of performance, and he happens to be a fellow whose whole psyche goes toward concentration, with the...

Warren Buffett speaks onstage during Fortune’s Most Powerful Women Summit – Day 2 at the Mandarin Oriental Hotel on October 13, 2015 in Washington, DC. Paul Morigi/Getty Images for Fortune/Time Inc Warren Buffett returned a jaw-dropping 5,502,284 percent to shareholders over his 55-year reign atop Berkshire Hathaway—a figure that makes the S&P 500’s 39,054 percent return in the same period look like a rounding error. With a net worth of $160 billion, the 94-year-old legend has earned his spot in the pantheon of investment greats through a disciplined, deceptively simple philosophy:...