Charles Munger says if you buy high-quality stocks at the 200-week moving average, you’d beat the S&P 500. Do any big firms offer this data?

@Max
Why don’t people just ask their financial analysts what to invest in if that’s the case?

@Max
Makes sense to me.

@Max
I think Munger read a lot of balance sheets.

Sterling said:
What’s your definition of a high-quality stock? That’s the real trick. This advice just sounds like ‘buy the best companies.’ Well, duh.

Just follow this easy plan: Step 1: Be attractive. Step 2: Don’t be unattractive. LOL

@Zen
Hilarious. But it’s a bit more complicated than that.

Sterling said:
What’s your definition of a high-quality stock? That’s the real trick. This advice just sounds like ‘buy the best companies.’ Well, duh.

Walgreens was killing it until… it wasn’t.

@Blair
I’ve been reading BRK reports for 20 years… I’d never touch Walgreens. They were not as solid as they seemed.

Sterling said:
What’s your definition of a high-quality stock? That’s the real trick. This advice just sounds like ‘buy the best companies.’ Well, duh.

When I’m winning, I’m winning 100% of the time.

Sterling said:
What’s your definition of a high-quality stock? That’s the real trick. This advice just sounds like ‘buy the best companies.’ Well, duh.

Only buy stocks that go up, right? But seriously, he probably meant companies with strong financials, not risky ones like Amazon. People see Amazon’s success and forget that 90% of similar companies fail.

@Van
My uncle asked me once to find him a stock that would go up 20x. I told him, ‘Sure, but I’ll probably find you 19 others that’ll lose you everything.’

Jules said:
@Van
My uncle asked me once to find him a stock that would go up 20x. I told him, ‘Sure, but I’ll probably find you 19 others that’ll lose you everything.’

Sounds like you’re ready for venture capital work.

@Van
That’s what I’ve been missing all these years!

@Van
Amazon speculative? I’d argue otherwise. They’ve taken down so many brick-and-mortar stores. Their dominance keeps growing, and once the competition is out, they’ll jack up prices. That’s how monopolies work—start by killing the competition, then control the market.

@Tristan
Amazon’s model is all about long-term dominance, not short-term profits.

Sterling said:
What’s your definition of a high-quality stock? That’s the real trick. This advice just sounds like ‘buy the best companies.’ Well, duh.

Investors Business Daily has good ratings. If you buy companies with an EPS and RS rating above 90 when they hit support, you’ve got a solid strategy.

@Niko
IBD’s ratings are useful, but blindly following their picks isn’t. Their ETF isn’t that great either.

Mica said:
@Niko
IBD’s ratings are useful, but blindly following their picks isn’t. Their ETF isn’t that great either.

I don’t blindly buy their picks either, but their ratings are a nice tool for identifying strong stocks during pullbacks.

Sterling said:
What’s your definition of a high-quality stock? That’s the real trick. This advice just sounds like ‘buy the best companies.’ Well, duh.

Step 1: Be rich. Step 2: Buy high-quality stocks at the 200-week average. Step 3: Profit! How can anyone not get this?

Niko said:

Sloane said:
Didn’t he mean the 200-day moving average? Surely not week?

No, it’s the 200-week. Munger and Buffett think in much longer timeframes than retail investors.

Is that still just the 200 simple moving average (SMA) on a weekly chart?

Mai said:
@Jamie
But if a stock is at its 200-week average, doesn’t that mean it’s been underperforming?

Good point. Charlie isn’t here to explain himself, but with enough money and time, anyone could probably outperform the market with simple strategies.