Charlie Munger: Al Gore’s strategy to invest in “green companies” is quite successful

Warren Buffett’s top lieutenant, Charlie Munger, told a small group of investors that the simple strategy of buying only service company stocks made former Vice President Al Gore very wealthy.

“Al Gore has come into you fellas business. … He has made $3 or $400 million in your business. And he’s not very smart,” Munger said at the Daily Journal annual meeting on Feb. 15. “He had one obsessive idea that global warming was a terrible thing. … So his idea when he went into investment counseling is he was not going to put any CO2 in the air.”

Munger is one of the most celebrated investors in the world and was an essential partner in Buffett’s success. Before becoming vice chairman of Berkshire Hathaway, the billionaire had quite the track record himself. From 1962 to 1975 Munger’s investment partnership generated 20 percent annual returns versus the S&P 500’s 5 percent.

“Al Gore did not have a brilliant mind, but he just managed to convince people about something, he was the founder and manager of Generation Investment Management and has more than $ 15 billion assets, focusing on investing in sustainable companies in the Services with a low impact on the environment. ” “Says Munger.

Muncher believes the strategy of buying only companies in the service sector helps investors avoid investing in capital-intensive firms that have weaker business models and are less profitable.

Source: Bloomberg Pro Terminal

Jr Trader Petar Milano