Charles Munger, who passed away on Tuesday, had a remarkable journey from earning 20 cents an hour at Warren Buffett’s grandfather’s grocery store during the Great Depression to becoming Buffett’s indispensable partner at Berkshire Hathaway Inc. for over four decades. Munger’s family confirmed his peaceful passing at a California hospital.
The partnership between Munger and Buffett was one of the most successful in business history, turning Berkshire, based in Omaha, Nebraska, into a multi-billion dollar conglomerate. Despite differences in style and investment approaches, their collaboration was a defining force in the business world.
Munger was known for his straightforward, often witty commentary on various topics, ranging from finance to human nature. He was critical of certain practices in the banking and cryptocurrency sectors, and his views often reflected a blend of pragmatism and skepticism.
Politically and personally, Munger and Buffett had their differences, but at Berkshire, they were a formidable team, often complementing each other’s ideas and never engaging in arguments. Their joint appearances at Berkshire’s annual meetings were a testament to their synergy, with Munger’s concise interjections often adding depth or humor to the discussions.
Buffett has acknowledged Munger’s influence in shifting his investment focus from solely seeking bargains to buying high-quality companies at fair prices. This shift was a significant factor in Berkshire’s success.
Munger, often referred to as the “Oracle of Pasadena” by his admirers, was known for his public appearances at Berkshire and Wesco Financial Corp meetings, as well as his chairmanship at Daily Journal Corp. His insights were so valued that they were compiled into a book, “Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger.”
Munger’s approach to investing and life was shaped by a deep commitment to rationality. Even during economic downturns, he encouraged investors to look beyond immediate challenges and focus on long-term opportunities.
His early life experiences, including working in Buffett’s grandfather’s grocery store and serving as a meteorologist during World War II, were foundational to his development. Despite not completing an undergraduate degree, Munger graduated from Harvard Law School and later shifted from law to investment management, where he achieved notable success.
Munger’s partnership with Buffett began after a meeting in Omaha in 1959, leading to a deep, collaborative relationship. They shared a value investing philosophy and often focused on undervalued but fundamentally strong companies.
While Munger and Buffett avoided trendy investments, they made significant purchases like BNSF railroad and H.J. Heinz Co. Munger also played a key role in Berkshire’s investment in BYD Co and introducing Todd Combs to Buffett.
Despite his wealth, Munger lived modestly and was known for his philanthropy, notably pledging over $100 million to the University of Michigan. He was a widower and is survived by his six children and two stepchildren. Munger’s legacy is marked by his impact on Berkshire Hathaway, his distinctive investment philosophy, and his profound partnership with Warren Buffett.
