Charlie Munger employs a multidisciplinary mental models approach to investment analysis, emphasizing quality businesses with predictable economics, exceptional management, and strong competitive moats. His core philosophy: "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price." The framework consists of four pillars: Moat Strength (35%), Management Quality (25%), Predictability (25%), and Valuation (15%), evaluating through ROIC, pricing power, capital efficiency, and other metrics, patiently waiting for "fat pitches" and concentrating positions in best ideas.
