Berkshire Hathaway's Charlie Munger "should forever be credited with being the architect" for the company, said his business partner, investing veteran and founder Warren Buffett in his latest note. Munger passed away on November 28, just 33 days before he would turn 100.
Talking about his first meeting with Munger in 1965, Buffett recounted how he was told by Munger who had been into money management for just three years that Buffett had made a mistake in buying control of Berkshire, but assured him that since the move had already been made, "he would tell me how to correct my mistake."
At that time, Buffett adds, Munger had no money invested in Berkshire, and "no one ever imagined he would hold shares". Nevertheless, Buffett added that Munger advised him to forget about ever buying another company like Berkshire, but now that he did own the company, he should add to it "wonderful businesses purchased at fair prices and give up buying fair businesses".
Further, Munger asked to him to "abandon" everything he had learnt from his hero Ben Graham. "It works but only when practiced at a small scale."
'I was the contractor carrying out his vision'
Years later, Buffett said that when Munger came on board as his partner in running the company, he repeatedly " jerked me back to sanity when my old habits surfaced." Charlie continued as a partner with Buffett until his death and during that time Buffett says, "Together... we, along with those who early on invested with us, ended up far better off than Charlie and I had ever dreamed possible."
Munger, Buffett adds never sought to take credit for his role as creator but instead let him receive all the accolades, playing the role of an older brother and part-loving father.
"Even when he knew he was right, he gave me the reins, and when I blundered he never – never –reminded me of my mistake.," Buffet said.
Comparing Berkshire to a great building, Buffett talks about how in the real world great buildings are often linked to their architect while those who poured the concrete or installed the windows are often forgotten.
"Berkshire has become a great company. Though I have long been in charge of the construction crew; Charlie should forever be credited with being the architect," Buffett says.
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