Charlie Munger ETF Strategy

By Nick (Charlie Munger) [CC 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.


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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