Charlie Munger – More Than Useful — MILE Wealth Management

Charlie Munger, Warren Buffett’s right-hand man, passed away last November at the age of 99, leaving behind a legacy that will continue to inspire for generations. Known for his wit and unyielding adherence to principle, Munger was a brilliant investor whose influence shaped the strategy and success of Berkshire Hathaway (and me).

Born in Omaha, Nebraska, in 1924, Munger’s journey was marked by an early life filled with both adversity and profound learning. After serving in the US Army Air Corps during World War II, he pursued an education in law at Harvard without having completed an undergraduate degree, graduating magna cum laude. This unconventional path set the stage for a career that would be anything but ordinary.

Munger’s professional life began in the legal field, but his true passion was in the world of investments. He established his investment partnership in 1962, massively outperforming the stock market indices and gaining recognition for his unique approach to business and investing. Charlie formally joined Buffett in 1978, and together, they transformed Berkshire Hathaway from a struggling textile manufacturer into a global conglomerate worth over $750 billion.

Dubbed the "abominable no-man" by Buffett for his critical and often contrarian viewpoints, Munger was instrumental in steering Berkshire towards acquiring high-quality businesses at fair prices, moving away from the "cigar-butt" investing style of buying mediocre businesses at bargain prices. His philosophy was simple yet profound: focus on exceptional companies with potential for long-term growth, even if it meant paying a premium.

Beyond his role at Berkshire, Munger was known for his sharp humor, often punctuating shareholder meetings with remarks that could both provoke thought and entertain. Despite his success and the recognition that came with it, he maintained a level of humility and a commitment to personal and professional integrity that resonated with all who knew him.

Munger’s impact extended beyond finance; he was a philanthropist, a lover of architecture, and a thinker with an insatiable curiosity about the world. His contributions to law, business, and the community are a testament to his multifaceted talents and his philosophy of life—a blend of diligent work, clear thinking, and ethical living.

In an interview given a few months before Charlie’s passing, Charlie was asked what he might want for a short epitaph. Charlie immediately replied: “I tried to be useful.” This is one of the most understated statements I’ve ever heard!

In the 1990s, as I started my interest in the world of investing, I was introduced to Warren Buffett’s writing and the Berkshire Shareholder meetings. I first saw Charlie in those meetings and I was immediately a big fan. For 30 years, I’ve soaked up anything related to Charlie. (I even own an autographed copy of “Poor Charlie's Almanack: The Wit and Wisdom of Charles T. Munger.”) There are few people who have been more useful in providing investing and life advice, and I’m constantly working to take each bit of his advice to heart.

Here are some Charlie quotes I’ve kept over the years:

Spend each day trying to be a little wiser than you were when you woke up.
The best thing a human being can do is to help another human being know more.
Acknowledging what you don't know is the dawning of wisdom.
It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.
The world is full of foolish gamblers and they will not do as well as the patient investors.
You must force yourself to consider opposing arguments. Especially when they challenge your best-loved ideas.
Knowing what you don’t know is more useful than being brilliant.
Quickly identify mistakes and take action.
The habit of committing far more time to learning and thinking than to doing is no accident.
We recognized early on that very smart people do very dumb things, and we wanted to know why and who, so that we could avoid them.
You don’t have to go crazy because everybody else is.
I find it amazing how difficult intelligent people have to change their minds - no matter how wrong they are.

My favorite Munger quotes:

To get what you want, you have to deserve what you want.
Don’t have a lot of envy, don’t have a lot of resentment, don’t overspend your income, stay cheerful in spite of your troubles, deal with reliable people and do what you’re supposed to do.

Thank you, Charlie!