Investing genius Charlie Munger, Warren Buffett's trusted advisor, passes away at 99

Charlie Munger passes away

In a significant loss to the financial world, billionaire investing sage Charlie Munger, recognized for his pivotal role as Warren Buffett's right-hand man at Berkshire Hathaway, has passed away at the age of 99.

Berkshire Hathaway confirmed Munger's death in a press release, noting his peaceful passing at a California hospital on Tuesday. Munger, who would have marked his 100th birthday on New Year's Day, played an indispensable role in Berkshire's success, a sentiment echoed by Buffett himself.

In an official release acknowledging Charlie's demise, Warren Buffett, CEO of Berkshire Hathaway, stated, “Berkshire Hathaway could not have been built to its present status without Charlie’s inspiration, wisdom and participation.”

Apart from his position as Berkshire's vice chairman, Munger wore multiple hats – a real estate attorney, chairman and publisher of the Daily Journal Corp., a Costco board member, philanthropist, and even an architect. Despite possessing a fortune estimated at $2.3 billion in early 2023, Munger's wealth was overshadowed by Buffett's staggering $100 billion.

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During Berkshire's 2021 annual shareholder meeting, Munger inadvertently hinted at future leadership, suggesting that Vice Chairman Greg Abel would "keep the culture" post-Buffett. Munger, distinguished by his thick glasses, faced personal challenges, losing his left eye due to complications from cataract surgery in 1980.

Munger's impact on Buffett's investment strategy was transformative. Shifting the focus from troubled companies at low prices to higher-quality, underpriced businesses, Munger's influence was evident in the 1972 approval of Berkshire's purchase of See's Candies for $25 million, the year it had roughly $30 million in sales and brought in $4.2 million of profit.

In their dynamic partnership, Munger often played the straight man to Buffett's loquacious commentaries. His wit, akin to Benjamin Franklin, was evident in his belief in the "lollapalooza effect," where various factors converge to influence investment psychology.

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Born in Omaha in 1924, Munger's journey included military service and graduation magna cum laude from Harvard Law School in 1948. His entry into the financial world began with the founding of the law firm Munger, Tolles & Olson in 1962, coupled with managing investments at the hedge fund Wheeler, Munger & Co.

Returning to Omaha in 1959, Munger met Buffett, and their like-mindedness forged an enduring partnership. The duo, known for their shared values, never had a single argument in their nearly 60 years of collaboration. Buffett has always expressed deep gratitude for Munger on various media platforms, stating that Munger had made him a better person, offering invaluable advice throughout their association.

Their investment philosophy centered on value investing, assessing stocks based on long-term fundamentals. Despite Berkshire's $50 billion loss in the first quarter of 2020 due to the pandemic, Munger and Buffett maintained a conservative approach, emphasizing liquidity over aggressive investments.

Munger's legacy extends beyond finance, with substantial philanthropic contributions to educational institutions. His donations, often with the stipulation that the schools accept his architectural designs, exemplify his multifaceted impact. Munger's architectural prowess even influenced practical considerations, such as ensuring larger girls' bathrooms during a construction project at a Los Angeles prep school.

A family man, Munger, married to Nancy Barry for 54 years until her death in 2010, had three children from his first marriage and four from his second. His secret to a long and happy life, as shared in a 2019 interview, emphasized simplicity – avoiding envy, staying cheerful in adversity, and dealing with reliable people.

As the investing community mourns the loss of the financial luminary, Charlie Munger's principles and wisdom will undoubtedly continue to shape the future landscape of investments.