The legend of Charlie Munger has come to an end—99 years of life leaving behind an investment philosophy and the brilliance of character

On Tuesday, November 28, 2023, Charlie Munger passed away at a hospital in California at the age of 99. His death marked the end of an era in the global financial markets. Having walked alongside Warren Buffett for 60 years, this man was not just an investment advisor but one of the architects who built the empire of Berkshire Hathaway.

Buffett remarked about Munger, “Charlie has urged me to change course for many years, but I was a slow learner.” This single statement encapsulates the essence of their relationship.

The Strategist Who Fundamentally Transformed Buffett’s Investment Philosophy

Munger’s greatest achievement was turning Buffett’s investment principles 180 degrees. In 1971, he persuaded Buffett to acquire the renowned chocolate confectionery chain Sees Candies Store at a “high price”—three times its intrinsic value. At that time, Buffett’s trusted approach was Benjamin Graham’s “cigar butt” investing—buying distressed companies at a deep discount regardless of their prospects.

At first glance, this acquisition proposal seemed to directly oppose that philosophy. However, Munger argued, “If a business is excellent, it’s worth buying at a reasonable price. Its future cash-generating ability more than compensates for the premium paid.”

History proved him right. Sees subsequently generated approximately $2 billion in cumulative profits for Berkshire. Buffett himself admitted in 2015, “This acquisition marked my shift from seeking cheap, mediocre companies to acquiring excellent companies at fair prices. Charlie had been recommending this approach for years.”

What’s more intriguing is that Munger also complemented Buffett’s weaknesses. With his deep knowledge of technology, Munger persuaded Buffett to make large investments in Chinese electric vehicle manufacturer BYD and Israeli machine tool maker Iscar. Buffett joked, “Charlie was sometimes a dreadful incompetent. That’s why he could stop me,” highlighting their dynamic.

An Outstanding Investment Record—Comparable to Buffett

In fact, Munger was also an outstanding investor. From 1962 to 1969, his investment partnership achieved an average annual return of 24.4%. Considering the S&P 500’s 5.6% rise during the same period, the difference was overwhelming.

Compared to Buffett’s partnership, which had an average annual return of 24.3%, Munger’s performance was nearly equivalent. Before joining Berkshire as vice chairman in 1975, his portfolio grew at an annual rate of 19.8% over 14 years, while the S&P 500 only grew by 5.2%.

The first time they met was in 1959, when Munger and Buffett, returning from a dinner in Los Angeles to their hometown, reconnected. Buffett later testified that he felt Munger was “the smartest man I’ve ever met.” Similarly, Munger held Buffett in high regard.

Photos from their trip to Savannah, Georgia in the 1980s show how remarkably similar the two investors looked. Dressed in khaki pants and blue shirts, from their tone of voice to their gait, from their height to their glasses frames, they resembled mirror images. Over more than 60 years of friendship, they had become truly inseparable.

The Light and Darkness of Life—Tragedy and Patience Shaping Philosophy

Born on January 1, 1924, in Omaha, Nebraska, Charles Thomas Munger inherited a thirst for knowledge from his avid reader mother, Florence. After majoring in mathematics at the University of Michigan, he enlisted in the Army Air Forces during World War II, serving as a meteorologist in North Alaska.

Post-war, he convinced the dean to admit him to Harvard Law School without a degree, and he graduated with excellent grades. Before settling in Southern California, he considered joining his father’s medical practice but ultimately established a law firm in 1962 with a few partners. That firm later became Munger, Tolles & Olson, now employing around 200 lawyers.

However, life was not always smooth. In 1955, his 9-year-old son Teddy died of leukemia. Munger recalled, “I was losing my children little by little,” describing how he desperately walked the streets of Pasadena. Even after more than 60 years, speaking of that pain still took his breath away.

In 1978, he lost sight in one eye due to a surgical mistake. His attitude—criticizing the surgeon for a 5% complication rate—reflected his life philosophy: everything is considered through probabilities and facts. Later, he learned Braille through self-study and realized he could continue reading with his remaining vision.

The Public Persona of Sharp Humor and Deep Intelligence

At Berkshire’s annual meetings, Buffett always took the microphone. Sitting side by side, Munger would often say in a raspy voice, “I have nothing to add.” Industry insiders knew this modest stance was a strategic move to shine a spotlight on Buffett.

In the 2000 shareholder meeting, when asked about the impact of internet stock speculation on the economy, Buffett responded politely in nearly 550 words. Munger summarized with a single remark: “Even if you mix raisins with feces, it’s still feces.” The audience burst into laughter.

In the 2004 meeting, after Buffett answered a question about executive compensation for over five minutes, Munger retorted, “It’s better to throw a venomous snake into your shirt.” This sharp wit instantly cut to the core of complex management issues.

In 2023, at age 99, Munger published an op-ed in The Wall Street Journal calling for the US government to ban Bitcoin and cryptocurrencies. His argument that “these are almost 100% gambling contracts” reflected his longstanding skepticism of Bitcoin, which he previously described as “scam activity” and “rat poison.” His wariness of financial innovation remained until the very end of his life.

The True Self of the Orator and His Extraordinary Patience

Though appearing modest as Berkshire’s chairman in public, Munger was an exceptional speaker. Privately, he would spend hours discussing with friends and family during regular lunches and dinners, and he was eloquent at the annual meetings of Daily Journal, where he served as vice chairman.

Friends noted an interesting habit: Munger would pause to drink water, and if someone started talking, he would hold his finger up, as if to say, “Let me finish my drink before you speak.” His patience was extraordinary.

In 2019, at age 95, Munger hosted two Wall Street Journal reporters at his home, continuing a nearly nonstop conversation until late at night. After 10 p.m., when the tired reporters tried to leave, Munger often signaled them to stay. In August 2023, at 99, he strongly advocated for a family trip to Minnesota with his dozens of grandchildren and great-grandchildren, many of whom had fished with him for decades.

Berkshire’s Chairman Peter Kaufman said, “Munger was in better mental shape than ever.” Even as his eyesight waned and walking became difficult, his sense of humor and mental vitality remained intact.

The Legacy of a Thinker Who Continually Preached Investment Truths

Munger’s favorite words were “diligence” and “calmness.” In a 2007 speech, he defined diligence as “doing nothing until the right moment,” emphasizing that investment success depends on waiting patiently for years or decades for bargains. He exemplified the importance of patience until the right opportunity arrived.

Regarding calmness, he said, “The stock market drops 50% every few decades, and all investors should be prepared to handle it.” This reflects the deep insight of someone who survived the Great Depression.

Charlie Munger admired Benjamin Franklin. Curiosity, ingenuity, and intelligence—these qualities Franklin possessed, Munger embodied within himself. His common sense, sharp humor, candor, and disdain for social conventions elevated him to legendary status among investors.

During his tenure as chairman of Wesco Financial, fans from China and India gathered at annual meetings to hear him speak. The anthology Poor Charlie’s Almanack, compiled by Peter Kaufman, became a worldwide bestseller, passed down from generation to generation of investors.

Munger also contributed part of his wealth to society through institutions like Stanford University, Good Samaritan Hospital in Los Angeles, and family planning. As an amateur architect, he designed his own house in the 1950s and later passionately designed university and high school campus buildings.

Even after losing his beloved wife Nancy in 2010, Munger showed no signs of mental decline. When asked by acquaintances, “Who is the person you are most grateful for in your long life?” he replied without hesitation, “My second wife’s previous husband. Because he was not a very good man, he gave me the opportunity to love this woman for 60 years.”

What Charlie Munger left behind is not just investment achievements. A blueprint for the Berkshire empire, a catalyst that unlocked Warren Buffett’s potential, and a lifelong philosophy of “reading the market with diligence and calmness” that he demonstrated to countless investors over decades—all of these will continue to influence generations to come. His 99-year life has ended, but Charlie Munger’s legend is only just beginning.