Charlie Munger was more than Warren Buffet’s right hand

“You folks need to find a new cult hero,” Charlie Munger explains it to an exclusive gathering of his more hardcore followers in 2011 in the city of Pasadena while nearing his retirement.

The then 87-year-old otherwise would share information, opinions, and news in Omaha in the Omaha city of Nebraska at the annually held shareholder meeting of the $780 billion Berkshire Hathway.

This Wednesday, the business world heard of the demise of Charlie Munger. Aged 99, he passed away in his hospital in California, just a month before his 100th birthday.

The wise investor left behind a plethora of unspoken advice and another plethora of already revealed.

He was the genius revealing under the shadow of Warren Buffet who would more often be the center of media attention. And a man who knew how to grab the audience. According to many reporters, it was fun listening to Charlie Munger as he addressed his audience.

Charlie Munger was a man of unusual and often views. He would severely censure modern accounting methods and encourage the USA to establish a long-lasting relationship with China despite the tensions.

The $2.6 billion net worth vice chairman would rally against moves taken by a bunch of investors that caused the 2008 crisis. He would address them with multiple unique, yet condescending expletives.

Berkshire Hathaway’s vice chairman had a solid bond with Warren Buffet. He was his right-hand man. The pairing was a paramount example of business partnership and teamwork.

While Warren is more straightforward, Charlie is the one devising creative strategies that result in sound decision-making. They both had distinctive views but were remarkable in concluding. Warren Buffet was smart enough to agree with him.

“Warren, think it over and you’ll agree with me because you’re smart and I’m right”, Charlie once said to Warren.

It didn’t take long before the two had hit it off way back when they were young and ambitious lads. Warren was handling a fledgling business while Charlie was running a law firm of his own. Both were brought up in the same city of Omaha.

Charlie Munger carved out the perfect blueprint for Berkshire Hathaway’s success.
“The blueprint he gave me was simple: Forget what you know about buying fair businesses at wonderful prices; instead, buy wonderful businesses at fair prices”, Warren speaking of Charlie

When first discussed, the new strategy was a revelation for Warren Buffet, who was previously busy purchasing businesses that were troublesome at less than market prices. He used to call these cigar butts, like the last remaining part of the cigar with the last inhale.

It was their shared passion for wealth that became a turning point. Berkshire Hathaway, then a textile manufacturing firm in New England, had turned into a $500 million investment firm.

If there ever will be a successful Berkshire Hathaway, there will be a Warren Buffet, and if there ever be a Warren Buffet, there will be a Charlie Munger by his side. This is the legacy created by the business duo.

The death of Charlie Munger brings no changes in the business operations. Berkshire Hathaway continues its daily operations despite losing one of its two greatest pillars for it was them who had made it unstoppable and consistent despite any unprecedented setbacks.