Charlie MangerImage Credit source: AP
Charles (Charlie) Munger, Warren Buffett’s old partner and vice chairman of Berkshire Hathaway, who used to ‘class’ Warren Buffett for almost 60 years, has died at the age of 99. He was struggling with many age related problems. He breathed his last in California Hospital on Tuesday. It was thanks to him that Berkshire Hathaway could transform from a failed textile company into a successful investment company.
Expressing grief over his death, Warren Buffett called him his dear friend. According to Bloomberg news, Warren Buffett said in a statement, ‘Berkshire Hathaway would never have been where it is today. Charlie’s support, intelligence and inspiration have brought him to where he is today.
Gave up established law practice
Charlie Manger left his established law practice to help Warren Buffett. Warren Buffett was much junior to him. He was the one who taught us how to convert a loss-making textile company into an investing company. Warren Buffett himself had said in an annual report of the company, “Charlie gave me the blueprint. It was quite simple. He advised me to forget about buying my fair business at a wonderful price. In its place, I should start buying wonderful businesses at fair prices.
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Charlie is the one who gave Buffett the ‘Cigar Butt’ theory
It was Charlie Manger who gave Warren Buffett the strategy of buying distressed companies at huge discounts. This strategy worked very well in the 1950s. His strategy was called ‘buying cigar butts’. A cigar butt with only one puff left. The result of this 60-year partnership between him and Buffett is that today Berkshire Hathaway has a big insurance company like GEICO. There are stakes in Coca-Cola, American Express, IBM, Wells Fargo and other companies. At the same time, the lives of more than 3,72,000 employees are supported.
Buffett’s ‘class’ continues like this
Charlie Munger is one of the largest stakeholders of Berkshire Hathaway. He holds shares of the company worth about $2.2 billion. According to Forbes, his total net worth is 2.6 billion dollars. He has his own house in Los Angeles. Warren Buffett had said in a meeting that where will you find such a great partner who will say, ‘You are not thinking straight.’ Many company CEOs surround themselves with people who challenge their decisions and biases.
Charlie Manger’s family is so big
Charlie Manger had two marriages. He got two daughters from his first marriage. Then from his second marriage he got the gift of a daughter, 3 sons and 2 stepsons. Not only this, he has 15 grandchildren and 7 great grandchildren. His wife Nancy died in 2010.