Charles T. Munger, an investment and business magnate, passed away on November 28, 2023 at the age of 99. He is famous for being the vice chairman of Berkshire Hathaway and Warren Buffett’s vice chairman. An indispensable colleague, Munger’s legacy is monumental beyond his partnership with Buffett.
Berkshire Hathaway’s Childhood and Ascension
Born on January 1, 1924, Munger’s life was a testament to hard work and extraordinary intelligence. His childhood included time spent at Buffett’s grandfather’s grocery store in Omaha.He later served as a meteorologist in the U.S. Army Air Corps during World War II.
Despite his early educational failures at the University of Michigan, he graduated with distinction from Harvard Law School in 1948. In Los Angeles, he co-founded the law firm Munger, Tolles & Olson. Venture into the world of stock investment and real estate..
Munger and Buffett: A legendary alliance
Formalized at Berkshire Hathaway in 1975, Munger and Buffett’s partnership merged two unique yet harmonious investment ideologies. Munger, through his firm Wheeler, Munger & Co., was prominent in the market from 1962 to 1975. A meeting with Buffett in 1959 sparked a collaboration that grew Berkshire into a massive conglomerate.
Berkshire Hathaway’s Course Definition
Munger’s role in carving out Berkshire Hathaway’s trajectory was pivotal. He advocated investing in undervalued but fundamentally sound companies. Major acquisitions under his leadership included BNSF Railroad and HJ Heinz Co. His foresight was evident in Berkshire’s investment in BYD Co., a Chinese company specializing in automobiles and batteries.
Munger’s Investment Spirit
Munger, a staunch advocate of value investing, worked with Buffett to find well-managed companies with undervalued stocks, often retaining stakes for years. Munger once said, “The big money is not in buying and selling, but in waiting.” His investment strategy favored a concentrated portfolio of thoroughly understood stocks aimed at delivering superior long-term returns.
Outspoken critic of cryptocurrency
Munger’s views on cryptocurrencies, especially Bitcoin, were very critical. He described it infamously. Bitcoin as “shit” The cryptocurrency boom was compared to gambling. Munger’s firm stance on cryptocurrencies has even extended to advocating for a ban on them.
Munger’s indelible legacy
At the time of his death, Munger’s fortune was estimated at $2.6 billion. But his true legacy lies in his influence. As Buffett’s closest ally, he played a pivotal role in defining Berkshire Hathaway’s investment philosophy and culture. His candid and humorous observations on investing, economics, and human behavior are highly regarded in the business world.
The impact of Munger’s resignation
Munger’s death leaves a huge void in the investment world. His collaboration with Buffett was one of the most successful collaborations in business history. His unique insights and investment acumen have been key to Berkshire Hathaway’s expansion. As the investment community and Berkshire Hathaway grapple with these losses, Munger’s wisdom and principles will undoubtedly continue to shape future decisions and strategies.
Charles T. Munger: A Legacy of Wisdom and Insight
Charlie Munger’s life and career are a testament to the power of intelligence, perseverance, investment and a profound understanding of human psychology. His contributions to Berkshire Hathaway and the broader investment landscape will be respected and studied by future generations of investors and business leaders.
Read more: Why are Buffett and Munger so strongly opposed to Bitcoin?