'Never argued': Tracing Charlie Munger and Warren Buffett's 60-year-old friendship
What's the story
The tale of Charlie Munger and Warren Buffett will go down in the history books, showcasing the everlasting bond of an extraordinary friendship.
Those with even a passing interest in the stock markets would probably be familiar with these two figures and their decades-long friendship.
Munger, who was Berkshire Hathaway's Vice Chairman, passed away on November 29. He was 99.
Let's take a look at how they first met and how their friendship developed over the years.
Details
Their first meeting was sparked by a mutual acquaintance
In 1957, Dr. Edwin Davis, a mutual friend, noticed similarities between Buffett and Munger in how they managed money and was determined to introduce them to each other.
However, their formal introduction didn't occur until 1959 when Munger returned to Omaha after his father's death.
The duo was then introduced at a dinner where Munger's contagious humor immediately clicked with Buffett.
From that moment, they embarked on a partnership that would go on to reshape the landscape of investing.
Details
Munger joined Berkshire Hathway in mid-1970s
Munger, already established as a lawyer and investment manager, found in Buffett and Berkshire Hathaway an opportunity to channel his expertise and vision.
Formally joining Berkshire Hathaway in the mid-1970s, Munger's ascent was rapid. By 1978, he held the position of Vice Chairman, a role he retained until his passing.
In a 2021 interview with CNBC, Buffett recounted how he knew from the moment they met over dinner that Munger would be in his life forever.
What Next?
'We have never had an argument'
An interesting fact is that the two never argued during their six-decade-long friendship.
"We have never had an argument, really, in 62 years, and it's not that we agree on everything," Buffett said at Berkshire Hathaway's annual shareholders meeting in 2021.
Despite differing viewpoints on investments, Munger, in an interview, said "Luckily there's no conflict, and Warren and I don't have to agree on every damn little thing we do. We've gotten along pretty well."
Insights
Munger highly influenced Buffett's investment approach
Munger's impact on Buffett's investment approach was profound.
He urged Buffett to focus on high-quality, undervalued assets, a hallmark of their value investing style that became synonymous with Berkshire Hathaway.
Buffett said in a 2017 interview, "He refined them in a huge way, in terms of looking for the quality companies, and looking out for the ability to make an investment that will work out for five or 10 or 20 years."
Facts
Their partnership went beyond financial success
Their partnership wasn't just about financial success. It was grounded in a shared philosophy of long-term investment and a firm refusal to follow market trends.
Buffett often praised Munger's concise thinking, noting how Munger could summarize ideas in a sentence while it might take Buffett a whole page.
"Charlie and I think pretty much alike. But what it takes me a page to explain, he sums up in a sentence," Buffett wrote in his 2022 letter to shareholders.
Insights
Munger's investment philosophy and multidisciplinary approach
Munger was known for his long-term value investing approach and multidisciplinary thinking.
He believed in conducting thorough research and understanding every aspect of a business before making investment decisions.
A lifelong learner and avid reader, he continuously sought to expand his knowledge in fields such as human nature, psychology, economics, physics, biology, and history.
His insights and wisdom have been compiled into books like Poor Charlie's Almanack and The Tao of Charlie Munger.