Charlie Munger ETF Strategy

By Nick (Charlie Munger) [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons

Sleep per Day: (Target) 7h30m / day (Actual) 7h19m  / day (46 day average)

It suddenly occurred to me that Charlie Munger’s 3 advices to Mohnish Pabrai could be translated to an ETF strategy when I was researching an ETF that focused on stocks that buyback shares.

The advice he gave was to pay attention in the following 3 areas:

  1. Follow the great investors
  2. Look at the cannibals
  3. Carefully study spinoffs

For investors who want to utilize these 3 advice but don’t have the time or interest to spend time studying stocks from these 3 areas, there are 3 ETFs that work perfectly for each area, namely:

  • Follow the great investors (GURU – Global X Guru Index ETF)
  • Look at the cannibals (PKW – PowerShares Buyback Achievers ETF)
  • Carefully study spinoffs (CSD – Guggenheim Spin-Off ETF)

I think these 3 ETFs would be something I’d like to use in conjunction with individually picked dividend aristocrats that have wide moats and are at attractive valuations.

[Disclaimer]

Not advice. No offer. Do not rely. May lose value. Risky. Conflicts hidden/obscured. (Borrowed from Terrence Yang‘s Disclaimer on Quora)

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