Charlie Munger, the influential figure who played a pivotal role alongside Warren Buffett in transforming Berkshire Hathaway, has died at the age of 99. A key architect of Berkshire’s success, Munger’s impact on the investment world is commemorated.
Charles Munger, the long-time associate and strategic partner of Warren Buffett, breathed his last on Tuesday at a California hospital. The news was confirmed by Berkshire Hathaway, where Munger served as vice chairman. A legal professional by training, Munger was an integral part of Berkshire’s journey from a struggling textile manufacturer to a global investment powerhouse.
“Berkshire Hathaway could not have been built to its present status without Charlie’s inspiration, wisdom, and participation,” remarked Warren Buffett in an official statement, acknowledging Munger’s significant contributions to the conglomerate’s success.
Munger, often referred to as Buffett’s alter ego, was known for his role in shaping a philosophy of long-term investment in companies. Under their joint leadership, Berkshire achieved an impressive annual gain of 20% from 1965 through 2022, outpacing the S&P 500 Index.
As vice chairman of Berkshire and one of its major shareholders, Munger held stocks valued at around $2.2 billion, contributing to an overall net worth of approximately $2.6 billion according to Forbes.
A vocal critic of corporate misconduct, Munger was recognized for his sharp insights and served as a counterbalance to corporate excesses during Berkshire’s annual meetings. Buffett often spoke highly of Munger’s ability to challenge and provide a reality check, emphasizing the value of having a partner willing to question decisions.
Beyond his legal background, Munger played a key role in expanding Buffett’s investment approach, encouraging a focus on acquiring truly outstanding businesses. This shift led to strategic investments in companies like See’s Candies Inc. and Coca-Cola Co., marking a departure from the earlier emphasis on undervalued assets.
Munger’s influence extended beyond the realm of investments; he was an outspoken critic of executive compensation and held strong opinions on various topics, including his characterization of Bitcoin as “noxious poison.” Despite political differences with Buffett, Munger’s and Buffett’s common ground on issues like universal health care demonstrated their ability to find consensus.
A prominent figure in Berkshire Hathaway’s leadership, Munger shared a unique partnership with Buffett that spanned nearly six decades. His legacy not only leaves an indelible mark on the business world but also on the philosophy of investing.
Charles Thomas Munger, born on January 1, 1924, in Omaha, was the first of three children in his family. His journey from a young worker at Buffett & Son grocery store to his influential role alongside Warren Buffett showcased a remarkable trajectory.
Munger’s passing marks the end of an era, with investors and admirers remembering him for his candid approach, impactful contributions, and the lasting partnership that significantly shaped the landscape of modern investment.
By Bloomberg
