Best Stocks for Munger-Style Investing

Last updated: April 8, 2026

Charlie Munger transformed value investing from 'buying cigar butts' into 'buying wonderful businesses.' Where Benjamin Graham sought any stock trading below liquidation value, Munger argued that it was far better to pay a fair price for an extraordinary business than a bargain price for a mediocre one. This insight — simple in theory but psychologically difficult in practice — is what he brought to his 60-year partnership with Warren Buffett at Berkshire Hathaway.

The Munger-inspired preset makes Moat the dominant pillar at 30%, the highest moat weight of any preset. This reflects Munger's obsession with competitive advantage as the primary driver of long-term returns. He has said that all intelligent investing is value investing, but the value comes from the quality and durability of the business, not from statistical cheapness. Quality and Valuation each carry 25%, reflecting the balance between business excellence and price discipline. Growth and Risk carry just 10% each — Munger believes that if you've identified a genuinely wonderful business with a wide moat, the growth will take care of itself and the risk is inherently low.

Munger's mental models approach — drawing on psychology, physics, mathematics, and biology to understand businesses — can't be captured in a quantitative score. But the financial outcomes of his philosophy can: companies with the widest moats tend to maintain high returns on capital for 15-20 years, and buying them at reasonable valuations has historically produced superior risk-adjusted returns. The stocks ranked below score highest when Munger's priorities are applied to 29 financial metrics across 6,400+ companies.

Charlie Munger's Principles: (1) Moat above all — competitive advantage is the most important attribute, (2) Invert, always invert — avoid terrible businesses rather than trying to find great ones, (3) Mental models — use multidisciplinary thinking to evaluate businesses, (4) Patience — wait for the fat pitch, (5) Simplicity — invest in businesses simple enough to understand deeply, (6) Fair price for quality — never compromise on business quality to get a cheaper price.

Munger Inspired Preset Weights

Quality25%

Moat30%

Growth10%

Risk10%

Valuation25%

Top Munger Inspired Stocks: Who Ranks Highest and Why

#1BZKanzhun Limited78

Kanzhun Limited tops the Munger-style ranking at 78, powered by the highest moat score (47) combined with 87 quality. This is the type of 'wonderful business' Munger spent his career identifying.

#2NVDANVIDIA Corporation77

NVIDIA Corporation scores 77 with a dominant moat (80) and fair valuation (49). Munger would appreciate its competitive position — the business would be difficult to replicate even with unlimited capital.

#3NVONovo Nordisk A/S75

Novo Nordisk A/S earns 75, with quality (95) and moat (61) driving the score. Its returns on capital reflect the kind of durable advantage Munger prizes.

#4OGC.TOOceanaGold Corporation74

OceanaGold Corporation scores 74 — strong across moat, quality, and valuation, the three pillars Munger weights most heavily.

#5APOApollo Global Management, Inc.73

Apollo Global Management, Inc. scores 73 — strong across moat, quality, and valuation, the three pillars Munger weights most heavily.

Full Munger Inspired Ranking: Top 25 Stocks

#	Stock	Sector	Score	Q	M	G	R	V
1	BZKanzhun Limited	Industrials	78	87	47	89	82	100
2	NVDANVIDIA Corporation	Technology	77	87	80	100	93	49
3	NVONovo Nordisk A/S	Healthcare	75	95	61	21	61	100
4	OGC.TOOceanaGold Corporation	Basic Materials	74	95	28	100	85	95
5	APOApollo Global Management, Inc.	Financial Services	73	86	50	49	62	100
6	AFYAAfya Limited	Consumer Defensive	72	80	53	59	53	100
7	ACTEnact Holdings, Inc.	Financial Services	72	91	42	18	100	98
8	EXELExelixis, Inc.	Healthcare	71	98	41	48	82	86
9	VICIVICI Properties Inc.	Real Estate	71	88	53	21	73	95
10	ABNBAirbnb, Inc.	Consumer Cyclical	71	87	59	56	67	76
11	ADMAADMA Biologics, Inc.	Healthcare	70	86	46	77	100	69
12	AMPAmeriprise Financial, Inc.	Financial Services	70	82	42	38	87	98
13	ABX.TOBarrick Gold Corporation	Basic Materials	70	82	32	97	99	81
14	APPAppLovin Corporation	Technology	70	88	53	77	71	68
15	FHIFederated Hermes, Inc.	Financial Services	69	86	34	46	98	93
16	ADPAutomatic Data Processing, Inc.	Industrials	69	85	56	58	59	76
17	NMIHNMI Holdings, Inc.	Financial Services	68	95	36	25	64	99
18	NVSNovartis AG	Healthcare	68	88	50	48	58	82
19	AEMAgnico Eagle Mines Limited	Basic Materials	68	80	29	100	91	80
20	AMGAffiliated Managers Group, Inc.	Financial Services	68	93	36	52	33	100
21	ACGLArch Capital Group Ltd.	Financial Services	68	87	36	27	74	100
22	ALIZFAllianz SE	Financial Services	67	62	50	66	60	97
23	ESNTEssent Group Ltd.	Financial Services	67	90	42	14	64	97
24	FSCOFS Credit Opportunities Corp.	Financial Services	67	88	25	47	78	100
25	ARGXargenx SE	Healthcare	67	70	55	100	100	52

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Frequently Asked Questions

What is Charlie Munger's investing philosophy?

Munger's philosophy centers on buying 'wonderful businesses at fair prices' — prioritizing competitive advantage and business quality over statistical cheapness. He believes the best investments are companies with wide, durable moats that can sustain high returns on capital for decades. He advocates patience (waiting for the right opportunity), simplicity (investing only in businesses you deeply understand), and multidisciplinary thinking (using mental models from different fields to evaluate businesses more completely).

How did Charlie Munger pick stocks?

Munger used a checklist-based approach informed by mental models from psychology, mathematics, physics, and biology. He would first identify businesses with obvious competitive advantages — switching costs, network effects, brand power, or regulatory moats. Then he'd evaluate management quality, assess whether the moat was widening or narrowing, and only invest if the price offered a reasonable return. He explicitly avoided complex situations, businesses dependent on a single product, and any investment he couldn't explain simply.

What is the difference between Buffett and Munger's approach?

While both practice quality-focused value investing, their emphasis differs. Buffett's approach gives equal weight to quality and valuation — he wants a great business AND a great price. Munger tilts further toward moat strength, arguing that the quality of the competitive advantage matters more than getting the absolute cheapest price. In UQS terms, Munger weights Moat at 30% (vs Buffett's 25%) while both keep Valuation at 25%. Munger is also more willing to pay up for exceptional businesses, while Buffett maintains stricter price discipline.