'Trying to be not stupid, instead of very intelligent': Charlie Munger once revealed the key to generating wealth in the stock market — 3 top plays that take full advantage of it

Put simply, Munger didn't look for the home run investment or the next big thing. Instead, he focused on buying simple businesses for less than they were worth and holding on for the long term.

It’s a simple strategy. Instead of being trying to be clever, be patient.

With that in mind, here are three stocks that resonate with Munger-style patience.

D.R. Horton

Homebuilders recently got a vote of confidence from Buffett himself after the Oracle of Omaha added a few homebuilder stocks to his portfolio, including D.R. Horton (DHI). He seems to be betting on a boom in home construction, which could be justified by the ongoing shortage of housing across North America.

According to a March report from Realtor.com, the U.S. housing market is short 6.5 million single-family units due to a deade of under-building. This gap could begin to close if more households opt for multi-family units and more construction gets underway. That’s where companies like D.R. Horton step in.

Meanwhile, the stock is undervalued—trading at around 10 times earnings per share. Consider placing this cheap, Buffett-backed stock on your radar for a long-term investment.

Eli Lilly

Pharmaceutical giants are usually good long-term bets. That’s because once a drug or treatment from their pipeline is approved, it can generate revenue and profits for decades. Eli Lilly (LLY) recently received approval for Mounjaro, a drug it intends to deploy in the weight loss market. Effectively, the company has entered into competition with Ozempic, which is one of Danish drugmaker Novo Nordisk’s products.

This market could be worth $71 billion by 2032, according to a report by J.P. Morgan stock analyst Richard Vosser cited by Fierce Pharma, with Eli Lilly capturing a significant chunk of it.

That’s just one drug in a broad portfolio. Eli Lilly already has a track record of steady growth and investment in research and development. As a result, the stock has delivered a total return of more than 1,000% over the past 10 years.