Charlie Munger, who passed away on Tuesday, transitioned from earning 20 cents an hour during the Great Depression to becoming Warren Buffett’s second-in-command at Berkshire Hathaway Inc. for over four decades.
Berkshire confirmed Munger’s peaceful passing in a California hospital. The Buffett-Munger partnership, starting in 1975, transformed Berkshire into a multi-billion dollar conglomerate. Despite differing styles and political views, their collaboration thrived.
Known as Charlie, Munger’s distinctive style involved blunt, laconic one-liners on investing, the economy, and human nature. He compared bankers to “heroin addicts,” dismissed Bitcoin as “rat poison,” and spoke pragmatically about gold. Munger’s wit extended to discussions about Berkshire, emphasizing avoiding stupidity over brilliance.
While politically different from Buffett, Munger’s passion for architecture and Buffett’s indifference to personal interests didn’t hinder their seamless collaboration. Munger’s architectural pursuits, including “Dormzilla,” contrasted with Buffett’s focus on business.
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Fans hailed Munger as the “Oracle of Pasadena,” recognizing his wisdom. Munger, like Buffett, revered economist Benjamin Graham but influenced Buffett to prioritize buying wonderful companies at fair prices.
Born in 1924, Munger worked with Buffett’s grandfather in Omaha, later dropping out of the University of Michigan to serve in the U.S. Army Air Corps. Despite lacking an undergraduate degree, he graduated from Harvard Law School in 1948. After law practice, Munger excelled in investments before joining forces with Buffett.
Their value investing philosophy, avoiding trendy businesses, proved successful. Munger’s suggestions led to strategic moves like Berkshire’s investment in Chinese company BYD Co. He lived modestly, resisted social media, and remained skeptical of the latest trends, emphasizing the value of old-fashioned intelligence.
Munger’s legacy extends beyond business; he was a philanthropist, pledging over $100 million in 2013 to build housing at the University of Michigan. Survived by six children and two stepchildren, Munger leaves behind a lasting impact on the world of investing and beyond.
Our Reader’s Queries
What stock does Charlie Munger own?
At the time of his passing, Charlie Munger held personal shares in Berkshire Hathaway, Costco, and the Daily Journal Corporation. Additionally, he had invested some of his funds in Himalaya Capital Management, which is managed by Li Lu.
What is Charlie Munger famous for?
Warren Buffett’s partner in transforming Berkshire Hathaway from a small textile manufacturer in New England to the ninth largest company in the S&P 500 was none other than Munger. However, Munger’s influence extended beyond investing, as he was a strong advocate for lifelong learning and rational decision-making.
What was Charlie Munger’s famous quote?
My philosophy is centered around the idea of mastering the best practices that others have discovered. I don’t believe in relying solely on one’s own imagination to come up with solutions. After all, no one person can be an expert in everything. It’s important to learn from the successes and failures of others in order to achieve the best possible outcome.
How did Charlie Munger make money?
Charlie Munger, Warren Buffett’s former right-hand man, received an impressive $70,000 annually from a $1,000 purchase he made over 60 years ago, until his passing. It is estimated that Munger made over $1 million from oil royalties that he purchased in 1962. Interestingly, Buffett’s father also invested in oil royalties, and to this day, the investor’s sister still receives monthly checks. It’s clear that investing in royalties can be a lucrative long-term strategy.