His desire to arrange financial affairs so as to never go back to go has depression-era roots.2. What started as an informal partnership was cemented into a formal role at Berkshire that continues to this day. [13], Munger was previously the chairman of Wesco Financial Corporation, now a wholly-owned subsidiary of Berkshire Hathaway. With a current net worth of $1.8 billion, Munger, 95, is a. Psychological and social factors serve as complications for investors seeking to invest in declining companies, often referred to as "cigar butts". Charles Munger, vice chairman of Berkshire Hathaway Inc., left, and Warren Buffett, chairman of Berkshire Hathaway Inc., attend a BYD Co. press event in China, on Monday, Sept. 27, 2010. For over 40 years, he has served as a trustee of the Harvard-Westlake School. Here was a man in his mid-30's, with health problems, family problems, and money . [46][47] He has donated to universities on the precondition that the universities follow his architectural blueprints exactly. Damn Right!, page 45 This abandoned high school was converted into a 31-unit apartment building, Munger and Berkshire Hathaway CEO Buffett agreed, 2007 University of Southern California commencement speech, Damn Right! in 1948. January 1, 2023January 27, 2023 Book Reviews, Whenever you think that some situation or some person is ruining your life, its actually you who are ruining your life. The Rational Walk is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising andlinkingtoAmazon.com. Our new weekly Impact Report newsletter examines how ESG news and trends are shaping the roles and responsibilities of todays executives. In 1999, Mr. Buffett noted that Sees Candies had earned a cumulative $857 million pre-tax since its 1972 acquisition while requiring very little incremental capital investment.6In 2011, Sees had sales of $376 million and $83 million of pre-tax profit.7 Questions may be submitted to CNBC at DailyJournalQuestions@CNBC.com. A ship on land. Author Peter Bevelin explained his key learnings from both Munger and Buffett in a 2007 interview: "How to think about businesses and investing, how to behave in life, the importance of ethics and honesty, how to approach problems but foremost how to reduce the chance of meeting problems." In 1978, nineteen years after meeting Warren Buffett, Charlie Munger formalized his role at Berkshire Hathaway by becoming Vice Chairman. 27 Copy quote. The final piece of the puzzle was put into place in June 1983 when Blue Chips minority shareholders agreed to exchange each share of Blue Chip for 0.077 of a share of Berkshire Hathaway. His family did not experience poverty, but poverty was visible everywhere. The two immediately became friends. [4], Although Munger is better known for his association with Buffett, he ran an investment partnership of his own from 1962 to 1975. In 2004, the Mungers donated 500 shares of Berkshire Hathaway Class A stock, then valued at $43.5 million, to Stanford to build a graduate student housing complex. I thought it was undignified to have to send invoices to other people. He performed superlatively there and graduated magna cum laude with a J.D. A block of stock accounting for 8% of Wesco was purchased by Blue Chip for $2 million. : Behind the Scenes with Berkshire Hathaway Billionaire Charlie Munger. A Division of NBC Universal. [6][10], In college and the Army, he developed "an important skill": card playing. In the decades since the publication of the book, Charlie Munger has remained active at Berkshire Hathaway. Would Warren Buffett have spent his life searching for cigar-butt stocks, never expanding into better business if he had not been introduced to Charlie Munger? By the time he was 69 years old, he had become one of the richest 400 people in the world, been married to his second wife for 35+ years, had eight wonderful children, countless grandchildren, and become one of the most respected business thinkers in history. What follows are highlights in a few areas that I thought were notable and would be of special interest to readers. Charlie Munger, vice chairman of Berkshire Hathaway. The donation went toward construction of a residence building designed by Munger for visitors of the Kavli Institute in an effort to bring together physicists to exchange ideas as Munger stated,"to talk to one another, create new stuff, cross-fertilize ideas". The eye condition has since receded and he still has sight in his right eye.[73]. Opportunity comes, but it doesn't come often, so seize it when it does come. In the Tupperware party, you have reciprocation, consistency and commitment tendency, and social proof. "And can you be cheerful when you're absolutely mired in deep hatred and resentment? In the decade after meeting Warren Buffett, Charlie Munger became a participant in a series of meetings with disciples of Benjamin Graham. In the decades since the publication of the book, Charlie Munger has remained active at Berkshire Hathaway. American entrepreneur best known as the Vice-Chairman of the Berkshire Hathaway Corporation and one . In 1955, Teddy died at the age of nine leaving Mr. Munger devastated by his loss. This is the largest gift in the history of the school. Subscribe to CNBC Make It on YouTube! The broad contours of this part of the story are quite well known. They were married until her death on February 6, 2010. The price tag was three times book value, a figure that no doubt gave Warren Buffett heartburn! He was hired at the law firm of Wright & Garrett for $3,300 per year, or $29,851 in inflation-adjusted dollars as of 2010. Some thoughts on Berkshire Hathaway's long term future twelve years after writing a comprehensive report on the company. A traditional midwestern upbringing during the Great Depression is a big part of Charlie Mungers life experience. "If you've got anything you really want to do, don't wait until you're 93.". Through entities such as Diversified Retailing, Blue Chip Stamps, and Berkshire Hathaway itself, deals were structured in ways that appeared to make the most sense at the time. Though Munger has no formal architectural training, he has contributed heavily to numerous building designs, including dormitories at Stanford University and the University of Michigan, as well as his current home. Weight, Hair color Feeling like a victim is a perfectly disastrous way to go through life. At this point, he had almost no money, lived in dreadful bachelor digs, and drove a beat up yellow Pontiac with a cheap paint job. [4], Through the GI Bill Munger took a number of advanced courses through several universities. Warren Buffett has demonstrated how shareholders can generate income from their Berkshire shares but investor psychology can be a major impediment. [69][70] Munger repeated his sentiments in another interview, praising Singapore's single payer system in contrast to the U.S. "insane" system which is a "national disgrace". Although he was well established in law, this was well before elite lawyers earned four figure hourly rates. It took my attendance at the 2000 Berkshire Hathaway annual meetingto get a senseof Mr. Mungers personality, intellect, and character. Munger has been a trustee of the Harvard-Westlake School in Los Angeles for more than 40 years, and previously served as chair of the board of trustees. Its such a simple idea. He says one of the qualities he admires the most about Buffett is his ability to be a "lifelong learning machine." Notably, Munger announced a donation of $200 million to the school in 2016. Among the firms marquee list of clients is Berkshire Hathaway. In 1959, Charlie Munger and Warren Buffett were introduced by mutual friends at a dinner party. He attributes their success to Buffett's ability to learn. This abandoned high school was converted into a 31-unit apartment building, Munger is worth $1.7 billion, according to Forbes. Lowe describes this episode in considerable detail and explains how it led to the untangling of the complex web. He's been Warren Buffett 's right-hand man for the last 40 years, and is more formally known as vice chairman of Berkshire Hathaway. Charlie Munger's age is 98. Munger could have made 3,000 to 6,000 times his money, as Tesla is worth over $600 billion today. and will be of interest to readers who follow the company. My goal is to eventually write one article on each of the twenty-five tendencies. For the American politician, mayor of Orlando, see, Munger at Berkshire Hathaway's 2010 shareholder meeting, Criticism of cryptocurrencies and Robinhood, The Superinvestors of Graham-and-Doddsville, Poor Charlie's Almanack: The Wit and Wisdom of Charles T. Munger, "Munger, Thomas Charles | District of Nebraska | United States District Court", "The World's Billionaires #1324 Charles Munger", "The Superinvestors of Graham-and-Doddsville", "$45,000 a Share, $1,500 a Share or $264 a Share", "Financier Munger Gives DuBridge Lecture", "Whitney Tilson's 2007 Wesco Annual Meeting Notes", "Interview with Peter Bevelin, author of Seeking Wisdom - from Darwin to Munger", Charlie Munger's got a billion words of wisdom, "Charlie Munger on the Psychology of Human Misjudgment", "Inversion and The Power of Avoiding Stupidity", "Bitcoin breaks 7,000 after Buffet investment chief calls it 'poison', "Bitcoin is 'disgusting and contrary to the interests of civilization' says famed investor Charlie Munger", "Charlie Munger says cryptocurrencies should have been banned earlier", "Charlie Munger on bitcoin: 'Disgusting,' 'stupid,' 'immoral,' 'turds', "Buffett business partner Munger slams US-China tensions, crypto", "Bitcoin bulls go on the offensive against Berkshire Hathaway", Berkshire's Munger Gives $20 Million to Michigan Law School, Former Michigan student Charles Munger donates $20 million for Lawyers Club renovation project, $20 million gift jumpstarts renovation at M Law's Lawyers Club, "Munger Donates $1.2 Million to University of Michigan", Mungers donate $43.5 million to help construct new graduate student residence, Stanford: $43.5 million given for more graduate student housing, "Charlie Munger talks about investing and life choices that secure prosperity", "Architect Resigns in Protest over UCSB Mega-Dorm", "Buffett associate Charlie Munger pledges $110 million to University of Michigan", "$110 million donation largest in UM history", "Warren Buffett's Investing Pal Charlie Munger Has Been Busy Designing College Dorms", Memorial to be held in March for former trustee Nancy Barry Munger, Munger donates $800,000 of stock to school, Munger Gives 100 Shares of Berkshire to Prep School, A Science Teacher's Dream in Studio City: New $13-million center gives students at Harvard-Westlake School top-notch, hands-on lessons, "Charles Munger, Warren Buffett's Longtime Business Partner, Makes $65 Million Gift", "Charlie Munger Donates $200 Million to UCSB for New Dorms", "Billionaire Donates $200M To Fix 'Gross' Dorms", "Political novice no stranger to upending status quo", "Chapter One: An Extraordinary Combination of Minds", "Memorial to be held in March for former trustee Nancy Barry Munger", "Charlie Munger: Democrats hate Trump 'so much that they're against him even when he's right', "Full Transcript: Billionaire Investor Warren Buffett Speaks with CNBC's Becky Quick on 'Squawk Box', "Charlie Munger: We Should Have Single-Payer Medicine | Squawk Box | CNBC", "Charlie Munger on health care: 'We should have a single payer system', "Charlie Munger: America's health care system is a 'national disgrace', "Lessons on Adversity from Charlie Munger: Be a Survivor, Not a Victim", https://en.wikipedia.org/w/index.php?title=Charlie_Munger&oldid=1139674224, American chief executives of financial services companies, California Institute of Technology alumni, People associated with Munger, Tolles & Olson, United States Army Air Forces personnel of World War II, University of Michigan College of Literature, Science, and the Arts alumni, Articles with dead external links from November 2019, Articles with permanently dead external links, Short description is different from Wikidata, Pages using infobox person with multiple spouses, Pages using infobox military person with embed, Creative Commons Attribution-ShareAlike License 3.0, Leading investments at Berkshire Hathaway with. My Amazon history says that I purchased a copy in December 2000 and I remember that it left an impression.1However, this was before I got over my aversion to writing in books so I do not have any notes of my thoughts. Billionaire investor Charlie Munger still isn't a fan of cryptocurrency. [68] Munger states he is "not a normal Republican", for example advocating "medicare for all" as a fix to the U.S. healthcare system, saying "I think we should have Mungers Psychology of Human Misjudgment. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice| Do Not Sell/Share My Personal Information| Ad Choices How Tall is Charlie Munger? My role has been that of general contractor, with the CEOs of Berkshire's subsidiaries doing the real work as sub-contractors," Buffett says. He later quit law and ventured into real estate development. Introduction In the essay The Superinvestors of Graham-and-Doddsville, published in 1984, Buffet wrote that the compound annual returns of Mungers investment partnership were of 19.8% during the 196275 period compared to the 5.0% annual appreciation rate for the Dow. Janet Lowes access to the Munger family provided much insight into Charlie Mungers personality from the perspective of his wife, children, grandchildren, and friends. Such meetings were often perfunctory, but Munger interacted with the other Wesco shareholders at considerable length, sometimes speculating about what Benjamin Franklin would do in a given situation. Charlie Munger is determined to complete the transformation of a small newspaper publisher into a significant software company. Janet Lowe does an admirable job of explaining the various entities that Warren Buffett, Charlie Munger, and other close associates used to acquire control of different businesses during the 1960s and 1970s. 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