1 Rule, 3 Stocks: Why One Legendary Investor Would Choose These Stocks Above Any Others Right Now

Core Viewpoint - Charlie Munger's investment philosophy emphasizes buying high-quality stocks at reasonable prices, and three companies currently stand out as potential investments: S&P Global, Fair Isaac, and Home Depot [1]. Company Summaries S&P Global - S&P Global has a history of over 150 years, showcasing its staying power and generating a subscription-heavy revenue mix through credit ratings, benchmark indexes, and analytics [2]. - The company has a market capitalization of $127 billion, with a current price of $424.43 and a gross margin averaging 65% over the last decade [3][4]. - Despite a price-to-earnings (P/E) ratio of 29, which is around the market average, shares are trading within 10% of their 52-week low, making it an attractive buy for Munger [6]. Fair Isaac - Fair Isaac operates a deep moat around the mortgage application process and is known for its FICO scores, which influence lending rates across various loans [7][8]. - The company has a market capitalization of $27 billion, with a current price of $1,126.34 and an impressive gross margin of 83%, up from 67% a decade ago [12][9]. - Free cash flow has increased by 394% over the last 10 years, now standing at $718 million, although the P/E ratio of 44 is above the market average [9][11]. Home Depot - Home Depot is a leading home improvement retailer with approximately 2,300 stores and a stable gross margin averaging around 32% over the last 25 years [13][14]. - The company has a market capitalization of $319 billion, with a current price of $320.75 and generates over $2 billion in quarterly free cash flow [16]. - However, the company's net debt has increased by over 250% in the last decade to nearly $64 billion, which may concern Munger [15].