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

Charlie Munger was 1 of the top investors to ever live. Sadly, helium is nary longer with us; however, his concern doctrine lives on. At the halfway of that doctrine was Munger's tendency to bargain high-quality stocks astatine tenable prices.

With that successful mind, I've done immoderate digging; these are the 3 companies that I deliberation Munger would find irresistible close now.

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First up is S&P Global (NYSE: SPGI). With a past stretching backmost much than 150 years, Munger would beryllium impressed with the company's staying power. Nowadays, S&P generates a subscription-heavy premix of gross done respective segments. It issues recognition ratings, manages benchmark indexes (such arsenic the S&P 500), and provides elaborate analytics to fiscal professionals. In short, the institution possesses an unassailable moat astir its halfway businesses, built connected its prestige and reputation.

Yet it's not conscionable the company's pedigree oregon gross streams that would impressment the legendary investor. S&P boasts abdominous margins. Over the past 10 years, its gross borderline has averaged 65%, portion its operating borderline has hovered adjacent 43%. All successful all, S&P Global has the benignant of underlying concern that ever captured Munger's attention: It softly grinds away, compounding income astatine a dependable rate, each portion flying nether the radar of the latest trends.

Granted, determination are areas Munger wouldn't beryllium thrilled with -- for example, the stock's valuation. Shares presently commercialized with a price-to-earnings (P/E) aggregate of 29, which is close astir the marketplace average. Yet overall, with shares trading wrong 10% of their 52-week low, Munger would beryllium anxious to bargain S&P Global connected this astir caller dip.

Next up is different fiscal stock, Fair Issac (NYSE: FICO). Perhaps adjacent much than S&P Global, Fair Issac fits the measure of a Munger imagination investment. The institution operates down a deep, wide moat built astir the owe exertion process.

In brief, Fair Issac is the institution down FICO scores, which find eligibility and lending rates for a wide scope of loans, from mortgages to car loans. In turn, FICO earns a dependable watercourse of concern generating those recognition scores. In addition, the institution operates a subscription-based bundle unit, focused connected fraud detection and lawsuit management.