The news of Charlie Munger’s passing, often regarded as Warren Buffet’s alter ego and Vice Chairman, elicited various reactions from those who understood the immense value he had dissipated.
Yet, at 99 years old, death is often considered a fair bargain for the elderly. He breathed his last on a Tuesday at a California hospital, as the company stated.
A longtime resident of Los Angeles, Buffett emphasized, “Berkshire Hathaway could not have reached its present status without Charlie’s inspiration, wisdom, and participation.”
Together, Buffett and Munger forged one of the most successful and enduring business partnerships, captivating millions worldwide.
Berkshire, initially a textile manufacturer, evolved into a multinational conglomerate wholly owning iconic brands like Dairy Queen and Fruit of the Loom, with stakes in giants like Apple (AAPL) and Coca-Cola (KO).
However, like everyone else, Munger had days of humble beginnings, and it was only when he joined Warren’s investment journey that he found himself and financial success.
Charlie Munger’s Background
Born on Jan. 1, 1924, in Omaha, Neb., Charles Thomas Munger grew up in the Dundee neighbourhood, living close to Buffett’s house and attending the same high school as the investment tycoon.
As a teenager, he even worked at Buffett’s grandfather’s grocery store. However, their paths did not cross until later in life when they became instant friends and partners at ages 35 and 29, respectively.
At 17, Munger enrolled at the University of Michigan to study mathematics but dropped out at 19 during World War II to serve in the US Army Air Corps.
Stationed in Pasadena, Calif., he studied meteorology, making it his home.
Post-Army, Munger, influenced by his familial legal background, pursued law, earning his J.D. from Harvard Law School with magna cum laude honours in 1948.
He practised real estate law in Los Angeles before returning to Omaha in 1959 to settle his father’s affairs, where a lunch meeting with Buffett sparked a lifelong friendship and a transformative business partnership.
Lawyer Turned Billionaire Investor
This lawyer by training, Munger played a pivotal role in crafting Buffett’s long-term investment philosophy, steering Berkshire to an impressive annual gain of 20% from 1965 through 2022—roughly double the pace of the S&P 500 Index.
Munger’s influence led Buffett to break free from his “cigar-butt” investing habit, a strategy learned from Benjamin Graham.
In early 2023, Munger’s fortune was estimated at $2.6 billion, unlike Buffett’s colossal wealth, exceeding $100 billion.
Munger’s passing came a week after Buffett’s generous donation of approximately $866 million in Berkshire stock to four family charities.
Charlie Munger’s Investment Journey
In investment Munger, chairman and CEO of Wesco Financial from 1984 to 2011, actively purchased Alibaba shares for the Daily Journal Corporation portfolio in the previous year.
Despite defending the investment in interviews and displaying indifference to the stock’s steep decline, an SEC filing in early 2022 revealed a significant reduction—302,060 shares were sold in the first quarter.
Munger’s influential tenure at Wesco Financial concluded when Berkshire, led by Buffett, acquired the remaining shares of the Pasadena-based insurance and investment company.
Munger’s philanthropic endeavours extended, with multimillion-dollar donations gracing prestigious institutions such as the University of Michigan, Stanford University, and Harvard Law School.
An interesting facet of his benevolence was the stipulation that these institutions embrace his architectural designs, a notable commitment considering his lack of formal training in architecture.
Among his notable contributions, Munger donated $43.5 million towards Stanford University. This played a pivotal role in the construction of the Munger Graduate Residence, a state-of-the-art facility designed to accommodate 600 law and graduate students.
Charlie Munger’s life, from a shared past with Buffett in Omaha to a billionaire investor shaping Berkshire’s destiny, leaves an indelible mark on the world of finance and business.