Charlie Munger

Charlie Munger (January 1, 1924–November 28, 2023) was an American business magnate, lawyer, investor, and philanthropist. At the time of his death, Munger was serving as Berkshire Hathaway's vice chairman, a role he had held since 1978. Known as Warren Buffett's "right-hand man," Munger was instrumental in Berkshire's growth into a large and successful diversified holding company. Munger also served on the boards of Daily Journal Corporation and Costco until his death in 2023. He was chairman of Wesco Financial Corporation from 1984 to 2011. As of April 2023, Munger's net worth was $2.2 billion. He was ranked #1,368 on Forbes's Billionaires (2023) list.

Munger was born as Charles Thomas Munger in Omaha, Nebraska on January 1, 1924 to parents Alfred and Florence "Toody" Munger. His grandfather was Thomas Charles Munger, a judge of the US District Court for the District of Nebraska. As a teenager, Munger worked at a grocery store owned by the grandfather of Warren Buffett, his future business partner. However, Munger and Buffett didn't meet each other until nearly two decades later.

Munger began attending the University of Michigan in 1941, where he studied math. In 1943, he joined the US Army Air Corps as a second lieutenant. After earning a high score on an army intelligence test, Munger was sent to study meteorology at the California Institute of Technology. He then applied to Harvard Law School but was rejected at first because he didn't have an undergraduate degree. Roscoe Pound, the school's former dean, was a friend of the Munger family and intervened on his behalf, allowing Munger to gain admission. He graduated magna cum laude in 1948 with a doctor of jurisprudence degree, despite never earning an undergraduate degree.

After graduating from Harvard Law School, Munger moved to California with his wife, Nancy Huggins, and began practicing real estate law. He joined the law firm Musick Peeler & Garrett, which represented wealthy local entrepreneurs. He also partnered with Franklin Otis Booth to develop real estate. They handled multiple projects at once, netting Munger several million dollars within a few years. In 1959, Munger met Warren Buffett at a dinner party held by a mutual acquaintance. The two immediately hit it off and went out later that same night by themselves. In a recall of the night, Buffett stated, “We went to dinner, and in five minutes, Charlie was rolling on the floor laughing at his own jokes—and I do the same thing. We knew we were sort of made for each other." In 1962, Munger founded the law firm Munger, Tolles & Olson, which he left in 1965 in order to focus on investing full-time due to Buffett's advice.

In 1962, Munger founded a hedge fund called Wheeler, Munger & Co., which he ran until 1975. During those years, he generated compound annual returns of 19.8 percent, compared to the 5 percent annual appreciation rate for the Dow during that same time. Munger then became vice chairman of Berkshire Hathaway in 1978, serving as Warren Buffett's right-hand man and investment partner. Munger took a calculated and objective approach to investments throughout his life. He analyzed companies without emotion or hope, choosing ones that appeared timeless yet undervalued. He once stated, “Forget what you know about buying fair businesses at wonderful prices; instead, buy wonderful businesses at fair prices.”

Buffett said that Munger kept him from allowing Berkshire to pursue the "foolish" approach of cigar butt investing, which is the practice of investing in a dying business for cheap to make a small profit: “Charlie understood this early; I was a slow learner.” Munger purchased stocks with the intention of holding them long-term in order to generate compound interest for many years. This practice allowed for a greater return and a lower tax burden upon the eventual sale of the stocks.

Munger donated hundreds of millions of dollars to educational institutions throughout his lifetime, including University of Michigan, Stanford University, Harvard Law School, University of California Santa Barbara (UCSB), Polytechnic School, and Harvard-Westlake. His donations were often made with the stipulation that the funded school accept his architectural designs for buildings, even though he was not a trained architect. Munger received backlash for his design of a largely windowless dorm for UCSB, which he described as "cheerful." He also made donations to Good Samaritan Hospital, Huntington Library, and Planned Parenthood.

Munger married his first wife, Nancy Huggins, in 1945. Huggins was Munger's sister's college roommate. The couple had three children together: Wendy, Molly, and Teddy, who died of leukemia at age nine. Huggins and Munger divorced in 1953, and a few years later, Munger married Nancy Barry. Barry and Munger had four children of their own: Charles Jr., Emilie, Barry, and Philip. Munger was also a stepfather of Barry's two children, William Harold Borthwick and David Borthwick. They remained married until Nancy's death on February 6, 2010.

On November 28, 2023, Munger died at a California hospital. He was ninety-nine. Warren Buffett stated, "Berkshire Hathaway could not have been built to its present status without Charlie's inspiration, wisdom, and participation." Berkshire has not publicly discussed a replacement for Munger.

In the chronicles of American financial history, Charlie Munger will be seen as the proverbial enigma wrapped in a paradox—he is both a mystery and a contradiction at the same time."––David Clark, The Tao of Charlie Munger: A Compilation of Quotes from Berkshire Hathaway’s Vice Chairman on Life, Business, and the Pursuit of Wealth.