These Charlie Munger Favorites Are Still Worth Owning in 2025

The late great Charlie Munger really played a huge role in shaping Warren Buffett’s investment philosophy over the decades. Indeed, it was his idea to invest in stellar companies at reasonable prices rather than insisting on getting the lowest valuation for shares of firms that were anything less than wonderful.

Munger had more than his fair share of home runs over the decades. In this piece, we’ll look at a trio of stocks that he was quite fond of. And while the valuation may not be at a level that’d make the following Charlie Munger favorites a buy today, I definitely view them as more than worthy of a spot on any long-term investor’s watchlist.

Indeed, perhaps all it’ll take is a swift correction to make the following premier stocks go for a relatively modest multiple. In any case, I do think that the current price of admission is worth paying for investors seeking top-tier exposure to some of the market’s most wonderful, wide-moat firms. So, if you’re looking for a wide moat and the prior blessing of the great Charlie Munger, consider the following stocks. 

Key Points in This Article:

• Costco continues to reward investors with solid gains and an attractive dividend yield. 
• BYD is a leader in the world’s largest EV market. 
• Should ETFs be a part of your investment strategy? Why not meet with a financial advisor near you for a complete portfolio review? Click here to get started today. (Sponsored)

Costco Wholesale

It’s no secret that Charlie Munger was a big fan of shopping at Costco Wholesale (NASDAQ:COST). He once referred to the retailer as “a perfect damn company.” And, in many ways, he’s absolutely right.

Costco’s managers don’t just know how to execute efficiently; they genuinely put their members first. Heck, they’ve been doing this for the last couple of decades, and over this time, they’ve built a cult following. The company is renowned for its impressive value proposition. But what many non-Costco shoppers may not know is that the caliber of the products it sells is also on the higher end. Indeed, there are two parts to value: quality and price. On both fronts, Costco has delivered. As the firm beefs up its e-commerce platform’s capabilities, it will literally deliver more value, in bulk, straight to the homes of loyal members.

I think its digital push could open the floodgates and bring on new members away from its retail rivals that aren’t quite executing at the same high level as Costco. Add the longer-term expansion into China (Costco in China has been a massive hit) to the equation, and it’s hard to ignore the longer-term growth trajectory.

My only issue with Costco stock has been the valuation multiple it’s commanded over the years. It’s still arguably lofty at over 56 times trailing price-to-earnings (P/E). Then again, Costco seldom trades at a discount to the retail peer group. As such, maybe it’s not too bad an idea to pick up a share or two while they’re down more than 7% from their recent highs.

BYD

Another Charlie Munger favorite is Chinese EV firm BYD (NASDAQ:BYDDF), headed by a founder, Wang Chuanfu, who Munger has referred to as a “genius.” Indeed, these are not words to be taken lightly from Warren Buffett’s right-hand man. While there are risks to investing in any Chinese stock, BYD shares have been standing head and shoulders above its peer group. The company’s performance has powered the stock to impressive gains.

And if the firm really is miles ahead of its EV rivals, perhaps BYD shares could prove too cheap right here at 7.3 times trailing P/E. That’s a ridiculous price to pay for the magnitude of innovation you’re getting from the name and the leadership of a CEO that may very well be able to command a valuation that’s magnitudes higher. With shares recently taking a dip as the firm slows production while running into delays with its factories in China, perhaps there’s an opportunity to pounce on a name that was held in such high regard by Munger.

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