Berkshire Hathaway vice chairman Charlie Munger dies at 99

Charlie Munger, often considered Warren Buffett’s close associate and right-hand man at Berkshire Hathaway, has passed away at the age of 99.

Munger died Tuesday in a California hospital, Berkshire Hathaway said in a statement posted on its website. Munger, who was Berkshire Hathaway’s vice chairman, is credited with helping Buffett build the company into a legendary financial firm known for its canny investments in companies such as Apple and GEICO, leading to spectacular stock gains over the past several decades.

“Berkshire Hathaway could not have been built to its present status without Charlie’s inspiration, wisdom and participation,” Buffett said in the statement.

In his 2022 annual shareholder letter, Warren Buffett reported that Berkshire Hathaway’s shares had experienced a remarkable increase of over 3,787,000% from 1965 to 2022. This stands in contrast to the S&P 500, which saw a gain of 24,700% during the same timeframe.

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The Unique Bond Between Buffett and Munger

Munger served as a sounding board on investments and business decisions for Buffett, with whom he shared much in common. Both were Nebraska natives who worked at the grocery store run by Buffett’s grandfather and uncle. Both also attended the same high school, although they didn’t meet while they were children given that Buffett, 93, is several years younger than Munger. 

The pair met for the first time years later in 1959, at an Omaha dinner party when Munger was practicing law in Southern California and Buffett was running an investment partnership in Omaha. The two instantly hit it off and kept in touch through frequent telephone calls and lengthy letters, according to Munger’s biography in his book “Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger.”

After trading investment ideas, and even buying into the same companies during the 1960s and 1970s, Munger eventually joined Buffett at Berkshire Hathaway, becoming its vice chairman in 1978. Munger helped lead Berkshire for more than five decades.

In his 2022 annual shareholder letter, Warren Buffett reported that Berkshire Hathaway’s shares had experienced a remarkable increase of over 3,787,000% from 1965 to 2022. This stands in contrast to the S&P 500, which saw a gain of 24,700% during the same timeframe.

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A Tribute to a Sharp Mind

A pleasant counterpoint to the congenial Buffett, Munger offered curmudgeonly quips at Berkshire Hathaway’s annual meetings, where he was known for dryly stating “I have nothing to add,” after many of Buffett’s expansive answers. But Munger never refrained from offering sharp insights that cut straight to the heart of the matter, such as advice he offered in 2012 on spotting a good investment.

“If it’s got a really high commission on it, don’t bother looking at it,” he said.

At the time of his death, Munger was also serving on the boards of directors at Costco, Daily Journal Corp. and Berkshire Hathaway, according to the financial data firm FactSet.

Prominent figures on Wall Street expressed their sadness at Munger’s death.

“For numerous decades, the duo spearheaded an investment giant that markedly enhanced the lives of many. Along the way, they consistently demonstrated the effectiveness of teamwork, synergies, and practical judgment,” remarked Mohamed El-Arian, Chief Economic Advisor at Allianz, on the platform X (formerly known as Twitter), alluding to Munger’s collaboration with Buffett.

A well-known philanthropist, Munger, in a recent act of generosity, contributed a $40 million donation to the Henry E. Huntington Library and Art Museum in San Marino, California—an institution he had previously endorsed. Additionally, he made contributions to several educational establishments, and both he and his deceased wife, Nancy B. Munger, who passed away in 2010, played a significant role as major supporters of Stanford University.

Buffett always credited Munger with pushing him beyond his early value investing strategies to buy great businesses at good prices like See’s Candy.

“Charlie has taught me a lot about valuing businesses and about human nature,” Buffett said in 2008.