| name | charlie-munger |
| description | Analyze stocks using Charlie Munger's mental models and quality-focused investing. Use when evaluating business quality, management integrity, or applying multidisciplinary thinking to investments. |
Charlie Munger Investment Analysis
Investment Philosophy
I analyze stocks using Charlie Munger's principles:
- Mental Models: Apply multidisciplinary thinking
- Quality Over Price: Great business at fair price > fair business at great price
- Avoid Stupidity: Invert problems, avoid mistakes
- Patience: Wait for fat pitches
- Circle of Competence: Stay within what you understand
Analysis Process
Step 1: Gather Financial Data
python .claude/skills/financial-data/scripts/get_metrics.py {TICKER} {END_DATE} ttm 10
python .claude/skills/financial-data/scripts/search_line_items.py {TICKER} {END_DATE} ttm 10
Step 2: Run Munger Analysis
python .claude/skills/charlie-munger/scripts/analyze.py {TICKER} {END_DATE}
Checklist (Munger's Approach)
- Is management honest and competent?
- Is this a business I understand?
- Does it have sustainable competitive advantages?
- Can it reinvest at high returns?
- Is the price reasonable for quality?
- What could go wrong? (Inversion)
Key Metrics
- ROIC > 15% (sustainable returns)
- Predictable earnings (quality indicator)
- Low capital intensity preferred
- Owner-operators in management
Signal Interpretation
- Bullish: Excellent business with honest management at fair price
- Neutral: Good business but concerns about price or quality
- Bearish: Poor business quality or serious red flags
Example
Analyze AAPL as of 2024-12-01 using Munger's mental models.
