Can Your Investments Survive a 50% Loss? Use Buffett and Munger’s Trusted Strategy
Charlie Munger, the former Berkshire Hathaway Inc. (BRK.A, BRK.B) vice chair and Warren Buffett’s long-time right-hand man, argued that investors must be prepared for a brutal reality: If you can’t stomach a 50% decline in your portfolio, you’ll never achieve exceptional results.
While many hope for an easy path to wealth, Munger’s rule remains one of the most straightforward and most challenging tests for anyone serious about investing in stocks over the long term.
The 50% Drop Test That Separates Winners From Losers
“You can argue that if you’re not willing to react with equanimity to a market price decline of 50% two or three times a century, you’re not fit to be a common shareholder, and you deserve the…
