As a lawyer, Charlie Munger helped Warren Buffett create his long-term investment philosophy. Under Buffett and Munger's stewardship, Berkshire Hathaway achieved an average annual growth rate of 20% from 1965 to 2022, nearly double the rate of the S&P 500.
Munger met Buffett in 1959 in Omaha, USA, and quickly became friends. He joined Berkshire in 1978, taking the position of vice chairman. Charlie and Buffett chair the annual Berkshire Hathaway shareholders meeting, answering questions from investors on a range of world issues.
Munger is also one of the largest shareholders of Berkshire Hathaway. His shares are currently worth about $2.2 billion. According to Forbes, his total assets are $2.6 billion.
According to Buffett, it was Munger who helped him expand his approach to value investing beyond what he learned from his mentor Benjamin Graham. With Munger's help, he began expanding into insurance, railroads, and consumer goods, creating a giant corporation with "huge" profits.
Munger met Buffett in 1959 in Omaha and quickly became friends (Photo: Business Today).
Munger's presence and valuable advice have made Buffett one of the richest billionaires in the world. At the same time, Berkshire Hathaway has also been raised from a tens of million dollar business to a powerful empire, worth about 785 billion USD.
The partnership between the two investing legends followed a strategy called value investing. This strategy is based on the ability to identify the value of undervalued stocks early and hold them for a period of time.
In 1972, Munger successfully convinced Buffett to buy See's Candies for $25 million, even though the California-based candy maker had pretax profits of only about $4 million. Since then, See's Candies has generated more than $2 billion in revenue for Berkshire.
With this investment strategy, the Buffett - Munger duo was once considered eccentric in the context of the impatient market. But over time, this method has made Buffett's name.
"Berkshire would not be what it is today without Charlie's inspiration, wisdom and dedication," legendary investor Warren Buffett said in a statement about his longtime partner.
Munger's knowledge of law, understanding of taxes as well as his ability to operate a business are a great complement to Warren Buffett, who is purely a financial person.
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