Charlie Munger, the renowned business partner of Berkshire Hathaway CEO Warren Buffett for over five decades, passed away at the age of 99 in Los Angeles, just a month shy of his 100th birthday on January 1, 2024. Munger’s death was confirmed in a statement by Berkshire Hathaway, revealing that he peacefully passed away in a California hospital on a Tuesday morning.
Warren Buffett expressed his deep appreciation for Munger’s contributions, stating, “Berkshire Hathaway could not have been built to its present status without Charlie’s inspiration, wisdom, and participation.”
Plans for celebrating Munger’s 100th birthday with a black-tie New Year’s Eve party in Los Angeles had been in motion, indicating that his decline in health might have been sudden. Munger, known for his candid advice on investments, acquisitions, and corporate management, was an integral part of Berkshire Hathaway as its vice chairman.
Bill Smead, manager of the Smead Value fund, characterized the partnership between Buffett and Munger as a unique and effective business marriage. He highlighted Munger’s straightforward approach, stating, “He was always willing to tell it like it was rather than sugar-coat it. He’d give you wisdom and didn’t worry about what people thought about him.”
Both Munger and Buffett maintained a modest lifestyle, taking a salary of just $100,000 annually for over 25 years. Munger, with a Berkshire stake worth over $2 billion, was recognized for his exceptional intellect. Buffett once praised Munger’s quick thinking, saying, “Charlie has the best 30-second mind in the world.”
Munger played a pivotal role in shifting Buffett’s focus to growth companies like Coca-Cola during the late 20th century. Their collaboration also led to one of Berkshire’s most successful investments—BYD, a Chinese car and battery maker. Munger’s positive view of China drew some criticism, but he emphasized the importance of cooperation between the two countries.
Known for his sharp comments on various subjects, Munger expressed disdain for Bitcoin and criticized the Robinhood online brokerage platform, calling it a “gambling parlor masquerading as a respectable business.”
Munger’s popularity among Berkshire shareholders was evident during the company’s annual meetings, where he and Buffett engaged in discussions covering a wide range of topics. His moral compass, candidness, and rapport with Buffett resonated with longtime Berkshire investors.
The friendship between Munger and Buffett spanned over six decades, marked by mutual respect and a lack of any significant disagreements. Munger’s initial career in law was redirected by Buffett, leading him to become a key figure at Berkshire Hathaway.
At the 2021 annual meeting, Munger discussed the unique culture at Berkshire, emphasizing decentralization as a key factor in the company’s success. He expressed disdain for compensation consultants and stressed the importance of maintaining the company’s distinctive culture even after Buffett’s eventual departure.
Munger’s philanthropy included funding a housing complex at the University of Michigan, although his architectural choices, like windowless bedrooms, stirred controversy. He contributed $110 million to the $155 million dorm project housing 630 graduate students.
In their later years, Munger and Buffett shared concerns about the growing popularity of wealth management careers, considering it an unfavorable trend for American civilization. Munger’s legacy extends beyond his role in Berkshire Hathaway, leaving an indelible mark on the world of business and investing.
Also read: The Life and Legacy of Charlie Munger: A Journey Through Success and Philanthropy