Charlie Munger, Architect of Buffett’s Investing Legacy, Passes Away at 99
Charles Munger served as the vice chairman of Berkshire and stood as one of its most substantial shareholders, boasting a stock portfolio valued at approximately $2.2 billion.
Charles Munger, the alter ego, sidekick, and foil to Warren Buffett for nearly six decades as they orchestrated the transformation of Berkshire Hathaway Inc. from a struggling textile maker into an empire, has passed away at the age of 99. The company confirmed his death on Tuesday at a California hospital. Munger, a longtime resident of Los Angeles, played a pivotal role in shaping Berkshire Hathaway’s success.
In a statement, Buffett acknowledged Munger’s indispensable contributions: “Berkshire Hathaway could not have been built to its present status without Charlie’s inspiration, wisdom, and participation.
A lawyer by training, Munger (rhymes with “hunger”) played a crucial role in collaborating with Buffett, who was seven years his junior, to formulate a philosophy of long-term investing in companies. Under their joint stewardship, Berkshire achieved an impressive average annual gain of 20% from 1965 through 2022—roughly double the pace of the S&P 500 Index. The compounding returns over decades not only made them billionaires but also transformed them into folk heroes for their devoted investors.
Munger, serving as the vice chairman of Berkshire, stood out as one of its major shareholders, with a stock portfolio valued at approximately $2.2 billion. His overall net worth, as estimated by Forbes, amounted to about $2.6 billion.
At the annual meetings in Omaha, Nebraska, the hometown shared by Munger and Buffett, Munger was renowned for playing the roles of both the straight man and the scolder of corporate excesses. As Buffett’s fame and wealth soared—occasionally ranking him as the world’s richest man based on Berkshire’s share price—Munger’s significance as a reality check also grew.
Buffett, acknowledging Munger’s value, remarked, “It’s terrific to have a partner who will say, ‘You’re not thinking straight,’” during Berkshire’s 2002 meeting, with Munger seated beside him. Munger, quick to interject, humorously added, “It doesn’t happen very often.” Buffett criticized the tendency of many CEOs to surround themselves with “a bunch of sycophants” unwilling to challenge their conclusions, highlighting the importance of dissenting voices. Munger, in his own assessment, believed that Buffett benefited from having “a talking foil who knew something,” and he expressed satisfaction in playing that role.
The acerbic Munger frequently tempered Buffett’s enthusiasm, earning him the playful moniker of “the abominable no-man” from Buffett himself. Their dynamic was on full display at Berkshire’s 2002 meeting when Buffett, in his characteristically verbose manner, provided a three-minute response to the possibility of the company acquiring a cable company. Munger, ever pragmatic, expressed doubt that one would be available at an acceptable price.
Buffett, seeking clarity, asked, “At what price would you be comfortable?
“Probably at a lower price than you,” Munger quipped in response, showcasing the candid and humorous banter that defined their partnership.
What’s the story behind the cardboard cutout?
The long-distance duo! It’s impressive how connected Munger and Buffett remained despite the physical distance. The fact that Buffett could predict Munger’s thoughts even when they couldn’t connect over the phone speaks volumes about their understanding. And bringing a cardboard cutout on stage? Classic Buffett humour.
I can almost picture him mimicking Munger’s agreement with that deadpan delivery. What a way to keep the partnership alive, even when one half is in cardboard form.
Did you come across this term in the context of a particular event or story?
Ah, Munger and his candid charisma! The term “groupies” adds a touch of playfulness to his fan base. It’s fascinating how he drew in crowds with his blunt speaking style and unique philosophy. Hosting meetings in Pasadena, California, he made those gatherings more than just financial discussions—they became forums for insights into life and investing, Munger-style.
And suggesting his audience needed a “new cult hero” at the 2011 meeting? That’s Munger for you—always ready to shake things up with a bit of humour and a dash of contrarian wisdom. It seems like being a Munger ‘groupie’ was about more than just investment advice; it was a journey into his unfiltered worldview.
Nome’s icy tundra to the hallowed halls of Harvard—a story waiting to be told.
Charlie Munger’s life has more twists and turns than a gripping novel! Enlisting in the Army Air Corps during his sophomore year at Harvard, he embarked on a journey that took him from meteorology training in California to a posting in Nome, Alaska. In 1945, amid his military service, he tied the knot with Nancy Huggins.
Despite lacking an undergraduate degree, Munger aimed high, applying to Harvard Law School after his Army discharge in 1946. It’s quite the story that he gained admission with a little help from a family friend and former dean. Munger’s time at Harvard Law School was marked by impressive achievements, including working on the Harvard Law Review and graduating magna cum laude in 1948.
Life took him to California, where he joined a Los Angeles law firm with his wife and son, Teddy. Their family grew, but so did the challenges—divorcing in 1953. In 1956, Munger found love again, marrying Nancy Barry Borthwick. Together, they blended their families, experiencing both joy and sorrow with the addition of four more children and the loss of Teddy to leukaemia in 1955. Munger’s journey is a testament to resilience and the unpredictable nature of life.
