In 1972, the Buffett and Munger duo acquired Sees Candies for $25 million, the largest purchase the two had ever collaborated on and the most expensive relative to book value.5Both men acknowledge that if the price tag had been even $100,000 higher, they would have walked away from the deal! Here is Charlie Munger's list of thoughts that are lauded by Warren Buffett. In 1949, Charlie Munger was 25 years old. [46][47] He has donated to universities on the precondition that the universities follow his architectural blueprints exactly. At the time, the combined assets of both firms was just $1.6 billion. Although not known for extravagance, the Munger family has long enjoyed reuniting for summer vacations at a family compound at Star Island which is situated in a lake in northern Minnesota. Recently Grew to More than $105 Million Under Management and Is Relocating to an Expanded Office at 520 Newport Center Drive in Newport Beach, California. Like Warren, I had a considerable passion to get rich. Some historically significant kin include William Ellery (signer of the Declaration of Independence), Julia (Ward) Howe (author of The Battle Hymn of the Republic), Robert Townsend (American Revolution spy), and Clara Barton (Founder of the American Red Cross). Charlie Munger photo by Nick Webb (CC BY 2.0). The dawning of a new year is a time for optimism and hope for self-improvement, but vague wishes rarely bring about concrete results. In 1955, Teddy died at the age of nine leaving Mr. Munger devastated by his loss. Who could have known that he would still be active in business and philanthropy nearly a quarter century later? In 1978, he was appointed the vice-chairman of Berkshire Hathaway, where he and Buffett have worked together ever since. In addition, there is an extensive archive of articles related toBerkshire Hathaway. According to Buffett's essay "The Superinvestors of Graham-and-Doddsville", published in 1984, Munger's investment partnership generated compound annual returns of 19.8% during the 196275 period compared to a 5.0% annual appreciation rate for the Dow. He later quit law and ventured into real estate development. As with any good genealogical research, if you discover a link to your own family tree, consider it a starting point for further research. [60], On February 6, 2010, Munger's second wife Nancy Barry Munger died at home at age 86. This is the largest gift in the history of the school. The chapters of Charlie Mungers life in the 2000s, 2010s, and 2020s deserve to be documented in a new biography. That is, on the relatively few occasions when he had something to add to Mr. Buffetts commentary. Charlie Munger is determined to complete the transformation of a small newspaper publisher into a significant software company. [41], Munger and his late wife Nancy B. Munger have been major benefactors of Stanford University. 1972). Charlie Munger has long had a reputation as an autodidact, learning complicated subjects such as physics, biology, andpsychologyby reading widely on a subject and combining book knowledge with worldly wisdom accumulated during a long lifetime. Overpaying for an investment is undesirable but time can heal many wounds if the underlying business continues to perform well. The story of how Charlie Munger and Rick Guerin acquired control of Daily Journal is covered inDamn Right! Following the chapters on Blue Chip Stamps and Wesco, the book covers events that are increasingly familiar to most readers who have followed the history of Berkshire Hathaway, including the rapid growth of the company throughout the 1980s and the transformation of the company in the 1990s with the General Re and GEICO acquisitions. Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube. Mungers Psychology of Human Misjudgment. By 1953, he had three children and was going through a divorce. In 2007, Munger made a $3 million gift to the University of Michigan Law School for lighting improvements in Hutchins Hall and the William W. Cook Legal Research Building, including the noted Reading Room. He remained in college through 1942 and then enlisted in the military where he scored highly on aptitude tests and was sent to Cal Tech to study meteorology before being assigned to a weather station in Alaska. "[28], Munger is critical of cryptocurrencies, referring to Bitcoin in particular as "noxious poison. According to the biography written by Janet Lowe, Molly Munger asked her father, Daddy, this car is just awful, a mess. There are no shortcuts. How did Charlie Munger lose an eye? Warren Buffett personally convinced Elizabeth Peters, who controlled a large block of Wesco shares, to reject the merger. Munger states that high ethical standards are integral to his philosophy; at the 2009 Wesco Financial Corporation annual meeting he said, "Good businesses are ethical businesses. Charlie Munger purchased his first shares in Q1 2021, then purchased more shares in Q3 and finally added another portion in Q4. Buffett gives Munger credit for much of the success of Berkshire Hathaway. A Division of NBC Universal. Mr. Munger enrolled in college in the fall of 1941 shortly before the Pearl Harbor attack upended American life. [18], Munger is also the chairman of the Daily Journal Corporation. After the war, a family friend helped Mr. Munger gain admittance to Harvard Law School even though he did not have a college degree. Source:Damn Right!,Appendix A, page 251. In those days, there was no health insurance, you just paid everything out of pocket and the death rate was near 100% since there was nothing doctors could do. In the decade after meeting Warren Buffett, Charlie Munger became a participant in a series of meetings with disciples of Benjamin Graham. But you build discipline by preparing for fast spurts," Munger says in "Poor Charlie's Almanack. He married Nancy Barry in his second marriage. Dies geschieht in Ihren Datenschutzeinstellungen. However, the dean relented after a call from Roscoe Pound, the former dean of Harvard Law and a Munger family friend. An experiment. One of Charlie Mungers goals was to have a large family and he married very young at the age of 21. A ship on land. I dont know where I got that notion from, but I had it.. Subscribe to CNBC Make It on YouTube! After completing five projects, Mr. Munger had $1.4 million as a result of real estate activities by the late 1960s. I submitted three questions to Becky Quick for consideration. Munger has been a trustee of the Harvard-Westlake School in Los Angeles for more than 40 years, and previously served as chair of the board of trustees. in 1948. Janet Lowe does an admirable job of explaining the various entities that Warren Buffett, Charlie Munger, and other close associates used to acquire control of different businesses during the 1960s and 1970s. He also serves as the chairman of the Daily Journal Corporation, based in Los Angeles, California, as well as a director of Costco Wholesale Corporation. In the essay The Superinvestors of Graham-and-Doddsville, published in 1984, Buffet wrote that the compound annual returns of Mungers investment partnership were of 19.8% during the 196275 period compared to the 5.0% annual appreciation rate for the Dow. He is often referred to as Buffetts right-hand man. That is, on the relatively few occasions when he had something to add to Mr. Buffetts commentary. But that doesnt mean he didnt face unbelievable challenges and tragedies. []Going back to go is a reference to theMonopolyboard game, first released in 1935, where bad luck can send a player back to go where the player must start their travel around the board all over again. Both girls have accomplished careers and a solid education. In 1955, Teddy died at the age of nine leaving Mr. Munger devastated by his loss. Why do you drive it? The broke Munger replied: To discourage gold diggers.. One suchexemplaris Berkshire Hathaway Vice Chairman Charlie Munger who turns ninety-nine years old today. Both Nancy and Wendy Munger served as members of the Stanford board of trustees. When referencing his time with Buffett, Munger told "Poor Charlie's Almanack" editor Peter Kaufman: "I have been incredibly fortunate in my life.". If you choose to unsubscribe at any time, you will no longer receive any further communications of any kind. After all, Mr. Munger was in his mid 70s at the time and most everyone assumed that the bulk of his career was in the past. He performed superlatively there and graduated magna cum laude with a J.D. "While no real money came down, my family gave me a good education and a marvelous example of how people should behave, and in the end that was more valuable than money," Munger told author Janet Lowe in her book "Damn Right! At the age of nine, Teddy died of leukaemia. Charlie Munger started off his career working in a grocery store. Three rules for a career: 1) Don't sell anything you wouldn't buy yourself; 2) Don't work for anyone you don't respect and admire; and 3) Work only with people you enjoy. The price tag was three times book value, a figure that no doubt gave Warren Buffett heartburn! [8] Munger excelled in law school,[9] graduating magna cum laude with a J.D. Munger served as chairman of Wesco Financial Corporation from 1984 through 2011. The next year, Mr. Mungers son, Teddy, was diagnosed with leukemia, a disease that had no treatment at the time. After the firm accumulated losses of 32% in 1973 and 31% in 1974, he was forced to wind it up in 1976. I thought it was undignified to have to send invoices to other people. Later in life, he faced a horrific operation that left him blind in one eye with pain so terrible that he eventually had his eye removed. The Omaha doctor who introduced us predicted that we would hit it off and we did," Buffett wrote of his long-time partner in his 2014 annual letter to shareholders. Charlie Munger was married to his first wife, Nancy Huggins, from 1945 to 1953. If it didnt, he says, he doesnt know how the human race could continue. This newsletter is not investment advice and all content is subject to thecopyright and disclaimer policyof The Rational Walk LLC, publisher of Rational Reflections.
Charlie Munger made headlines last year when news broke that he had designed a massive dorm building with almost no windows that could house 4,500 students. I had Thomas Jefferson over my bed at seven or eight. When Mr. Munger heard about the Buffett investment partnerships, he set up a partnership of his own. With a net worth of over 1 billion dollars, experience in the US Army and a qualification from Harvard Law it's safe to say when Munger talks we should listen. Charlie Munger's family tree includes a number of presidential kin including, but not limited to, Warren G. Harding, William Taft, Richard Nixon, Jimmy Carter, and James Madison. This was despite the fact that the 1973-74 bear market was brutal for the partnership with a loss of 31.9% in 1973 and 31.5% in 1974, far in excess of the DJIAs decline of 13.1% and 23.1%, respectively. This led to an unpleasant investigation of the tangled web of ownership between Berkshire, Diversified Retailing, Blue Chip, and Wesco that was eventually settled for $115,000. Charlie Munger is also the chairman of the Daily Journal Corporation and the former chairman of Wesco Financial Corporation. 27 Copy quote. The only real criticism ofDamn Right! Subscribe to CNBC Make It on YouTube! Among the firms marquee list of clients is Berkshire Hathaway. My Amazon history says that I purchased a copy in December 2000 and I remember that it left an impression.1However, this was before I got over my aversion to writing in books so I do not have any notes of my thoughts. This was despite the fact that the 1973-74 bear market was brutal for the partnership with a loss of 31.9% in 1973 and 31.5% in 1974, far in excess of the DJIAs decline of 13.1% and 23.1%, respectively. Charlie Munger at Berkshire, Made Available Through Attribution License by Nick. An independent panel of UCSB faculty experts, outside stakeholders, and industry leaders reviewed and discussed the proposed plan for five months before delivering their recommendations this week. In addition, there is an extensive archive of articles related toBerkshire Hathaway. Once a saver, always a saver: Warren Buffett says generational wealth isnt what it used to be in his annual letter Its bigger than the housing crisis: An influential economist just blamed NIMBYs for American decline, and Elon Musk CA Notice at Collection and Privacy Notice, Do Not Sell/Share My Personal Information. Last week, at The Daily Journal annual meeting in Los Angeles, California, Munger was asked to reflect on that journey. He has four children from his second marriage with Nancy Barry, the daughter of David Noble Barry Jr. and Emilie Hevener Barry: physicist and Republican activist Charles T. Munger Jr., Emilie Munger Ogden, Barry A. Munger, and Philip R. Munger, and two stepchildren: William Harold Borthwick and David Borthwick. An 85-year Harvard study found the No. That was certainly true of Sees Candies at the time and proved to be even more true as time went on. He and Jack Wheeler established the investment firm Wheeler, Munger, and Company, which was listed on the Pacific Coast Stock Exchange. [22], Munger uses the term "Lollapalooza effect" for multiple biases, tendencies or mental models acting in compound with each other at the same time in the same direction. His five sons and stepsons as well as at least one grandson graduated from the prep school. This led to an unpleasant investigation of the tangled web of ownership between Berkshire, Diversified Retailing, Blue Chip, and Wesco that was eventually settled for $115,000. Related Janet Lowe would be the ideal person to write such a biography but sadly shepassed awayin 2019. Charlie has two stepchildren in addition to her four biological children. Our First Child, Dorian Alexander Kennon-Green, Was Born! "What you have to learn is to fold early when the odds are against you, or if you have a big edge, back it heavily because you don't get a big edge often. [66], On July 22, 2002, Munger's first wife Nancy Huggins Freeman died of cancer at age 76. Following the chapters on Blue Chip Stamps and Wesco, the book covers events that are increasingly familiar to most readers who have followed the history of Berkshire Hathaway, including the rapid growth of the company throughout the 1980s and the transformation of the company in the 1990s with the General Re and GEICO acquisitions. Questions may be submitted to CNBC at DailyJournalQuestions@CNBC.com. At Harvard, he was a member of the Harvard Legal Aid Bureau. By the time he was 69 years old, he had become one of the richest 400 people in the world, been married to his second wife for 35+ years, had eight wonderful children, countless grandchildren, and become one of the most respected business thinkers in history. Source: Sees Candies was purchased by Blue Chip Stamps, a company that Buffett and Munger controlled which eventually merged into Berkshire Hathaway in 1983. By 1959, Mr. Munger was back on his feet but had significant expenses given his large and growing family. Graduating in 1948, Mr. Munger joined a law firm in the Los Angeles area and seemed to be set for a traditional career in law. Spouse/Ex-: Nancy Barry (m. 19562010), Nancy Huggins (m. 19451953), children: Barry A. Munger, Charles T. Munger, Emilie Munger Ogden, Jr., Molly Munger, Philip R. Munger, Wendy Munger, education: Harvard University, University Of Michigan, California Institute Of Technology, See the events in life of Charlie Munger in Chronological Order, (Investor, Businessman and Vice Chairman of Berkshire Hathaway). Charlie Munger tackled a slew of subjects during Daily Journal's annual meeting on Wednesday. Berkshire Hathaway is a company with various and distinct holdings in groups specializing in freight rail transportation, manufacturing, and insurance. In addition, he went into real estate development in the Los Angeles area with Otis Booth, an endeavor that required personal attention but proved to be highly remunerative. is that it is now quite outdated. So to Charlie Frankel, you don't create a loan system where all the people who make the loans promptly dump them on somebody else through lies and twaddle, and they don't bear the responsibility when the loans are good or bad. That was not to be for too long though. Warren Buffett has demonstrated how shareholders can generate income from their Berkshire shares but investor psychology can be a major impediment. [26][27], Munger is famous for his quote "All I want to know is where I'm going to die, so I'll never go there." By 1959, Mr. Munger was back on his feet but had significant expenses given his large and growing family. 13F filings can be a minefield. Although he was well established in law, this was well before elite lawyers earned four figure hourly rates. Munger went on to rattle off a list of his best advice, each lesson succinctly delivered in bite-size form. In 1972, a block of stock in Wesco Financial, the parent company of Mutual Savings and Loan, was offered to Warren Buffett and Charlie Munger at fifty percent of book value. The meeting will not have an in-person audience and will bewebcastby CNBC with questions asked by Becky Quick. . Like this story? The price tag was three times book value, a figure that no doubt gave Warren Buffett heartburn! In a wide-ranging conversation with Record, he called his opponents including a respected architect who resigned from an advisory committee last week "idiots .