Legendary investor and right-hand man to Warren Buffett, Charlie Munger, has passed away at the age of 99. His passing marks the loss of an investing genius, whose insight and brilliance helped shape the world of finance.
Munger was born in Omaha, Nebraska in 1924 and developed an early passion for investing. He studied law at Harvard University, and then went on to practice and become a partner at a law firm in Los Angeles. In the early 1950s however, he was bitten by the investing bug and soon transitioned to full-time investing.
It was in 1978 that Munger and Buffett formed their partnership. Munger served as vice-chairman of Berkshire Hathaway, acting as Buffett’s trusty side-kick in his investing adventures. Together, the pair generated the greatest concentration of wealth the world has ever seen, entitlement to which Munger credited to their “simple formula” for success.
As well as this formula, Munger was also well-known for his personal investment style. His complex approach prioritized investing in solid and reliable businesses and investing in the long-term, rather than looking to capitalise on quick profits. Munger also underlined the importance of diversification and an awareness of prices with regards to risk management.
Munger’s strong emphasis on honesty and reliability also formed the core of his investment philosophy. He warned of the dangers of both ego and bias and continuously reminded investors of the necessity of maintaining high ethical standards.
Beyond his investment ideas and strategies, Munger was also seen as a personal tutor to Buffett and many other investors around the world. His sage advice and experience was invaluable and his absence will be sorely felt by many.
Charlie Munger’s death is a huge loss for the investing community, and although he may no longer be with us, his wisdom, ideas, and philosophy will live on.
