Charles Thomas Munger, co-founder of Berkshire Hathaway with Warren Buffett, has built his own following among investors. The late billionaire left behind a wealth of tried and tested investment advice over the years. Even Buffett, 95, nicknamed the ‘Omaha Believer’ for his numerous flawless investment decisions over the years, credits Munger with teaching him the couple.
After Munger’s death in November 2023, Bloomberg noted in an obituary his importance as a “straight man and scoundrel of corporate excess” who provided a reality check and balance against Buffett’s fame and fortune.
Quote of the day by Charlie Munger
“Tortoises outrunning hares are learning machines. If you stop learning in this world, the world crashes right around you.”
What does Charlie Munger’s quote mean?
Munger was a staunch advocate of multidisciplinary knowledge, where one gathers information on broad subjects and draws on the genius of those around them to develop one’s own intelligence.
The quote above is from his commencement speech at the University of Southern California (USC) School of Law in 2007, where he shared the example of business partner and longtime friend Buffett. “Warren is one of the best learning machines on this earth. Tortoises outrun hares are learning machines. If you stop learning in this world, the world crashes right around you,” he stated.
Further during the speech, Munger noted that Buffett is a constant learner, and their results at Bekshire would be “absolutely impossible” if the “Oracle of Omaha” were not a “constant learning machine.”
Munger, while talking to students, emphasized, among other things, the need to read books across subjects that have nothing to do with your majors or jobs. He went on to explain that Buffett “spends half of all his time sitting and reading. And much of the rest of his time is spent talking face-to-face either on the phone or in person with highly talented people he trusts and who trust him.”
The key takeaway from Munger’s talk is that learning is a continuous process and there is much wisdom to be absorbed from the society we lead. It is wise to rely on the people around you, especially those with expertise. And that there is only benefit to expanding your knowledge base rather than limiting yourself to only sectors or spaces that suit you.
Master Joke: Who is Charlie Munger?
Munger, known for his sharp wit, brutal honesty and no-nonsense thinking, was one of the architects of Berkshire Hathaway Inc.’s success alongside Buffett’s best friend and business partner. For nearly 60 years, the duo transformed the company from a failing textile manufacturer to an empire worth billions.
A lawyer by training, Munger helped Buffett, who was seven years his junior, develop a philosophy of investing in companies for the long term. Buffett credited him with shaping Berkshire Hathaway’s investment style and shifting the “Oracle of Omaha” from cheap butt stocks to high-quality businesses at fair prices.
Under their leadership, Berkshire averaged 20% annual returns from 1965 to 2022, roughly double the pace of the S&P 500. Decades of compounding returns have made the pair of billionaires and folk heroes idolized by investors.
Munger was vice president of Berkshire from 1978 until the day he died in 2023 at the age of 99. He was also among the company’s largest shareholders, with shares worth about $2.2 billion. His total net worth was about $2.6 billion, according to Forbes.
