How Berkshire Hathaway crushed the S&P 500 — here's how 'less' can mean more for your portfolio

Core Insights - The article discusses the investment philosophy of Charlie Munger, highlighting his belief in a simplified approach to investing that contrasts with the strategies of many stockpickers [2][4][5]. Group 1: Investment Philosophy - Munger emphasized the importance of "doing less" in investment strategies, suggesting that focusing on fewer, high-conviction opportunities can lead to better outcomes [4][5]. - Berkshire Hathaway achieved a 19.8% compounded annual return from 1965 to 2023, significantly outperforming the S&P 500's 10.2% return during the same period, showcasing the effectiveness of Munger and Buffett's approach [4]. Group 2: Market Trends - In 2024, assets managed by passive funds surpassed those managed by active funds for the first time, indicating a shift in investor preference towards simpler investment strategies [6]. - Munger's approach is not limited to institutional investors; ordinary investors can also apply these principles to their portfolios, suggesting a broader applicability of this investment philosophy [6].