Earlier this week, we bid a painful adieu to one of the greatest minds the world has ever seen. 

Charles Thomas “Charlie” Munger, born on January 1, 1924, in Omaha, Nebraska, United States. He went on to become a legendary American investor, businessman, and philanthropist. He is best known as the longtime business partner of Warren Buffett and the vice chairman of Berkshire Hathaway, one of the most successful and well-known investment firms in the world. 

A glimpse of Charlie Munger’s incredible and inspiring life story:

Early Life and Education:

Munger was born to Florence “Toody” (Russell) and Alfred Case Munger, a lawyer. As a teenager, he worked at Buffett & Son, a grocery store owned by Warren Buffett’s grandfather, Ernest P. Buffett. His grandfather was Thomas Charles Munger, a U.S. district court judge and state representative. His early life was marked by financial struggles, including the Great Depression. He displayed an early interest in learning and had a voracious appetite for reading. He enrolled in the University of Michigan, where he studied mathematics.

World War II:

Munger served as a meteorologist in the U.S. Army Air Corps during World War II. His experiences during the war influenced his thinking and problem-solving skills.

Education and Legal Career:

After the war, Munger attended the University of Michigan, where he earned a degree in mathematics in 1949. He then went on to Harvard Law School, where he received his law degree in 1948. Munger briefly practised law but eventually shifted his focus to investment.

Investment Career:

Munger’s investment career took off when he met Warren Buffett in 1959. The two formed a strong partnership and began working together on various investment ventures. Munger played a crucial role in the success of Berkshire Hathaway.

Berkshire Hathaway:

Munger became the vice chairman of Berkshire Hathaway in 1978. The company, under the leadership of Buffett and Munger, transformed into a multinational conglomerate with investments in various industries, including insurance, utilities, and consumer brands.

Philosophy and Influence:

Munger is renowned for his pragmatic approach to investing and his emphasis on rational thinking. His speeches and writings often reflect his wide-ranging intellect, incorporating ideas from various disciplines such as psychology, economics, and biology.

Personal Wealth and Philanthropy:

Over the years, Munger’s personal wealth has grown significantly, primarily through his investments in Berkshire Hathaway. He is also known for his philanthropic activities, contributing to various causes and organisations.

Notable Quotes and Contributions:

Munger is famous for his witty and insightful quotes, known as “Mungerisms.” His annual speeches at the Berkshire Hathaway shareholder meetings are widely followed for the wisdom and investment advice he imparts.

Charlie Munger’s life story is a testament to his intellectual curiosity, adaptability, and his enduring partnership with Warren Buffett, which has resulted in significant success in the world of investing.

Here are some of his famous wise words that we all can gain from…

1. On Investing:

   – “The big money is not in the buying and selling, but in the waiting.”

   – “Invert, always invert: Turn a situation or problem upside down. Look at it backward.”

2. On Learning:

   – “Go to bed a little wiser than when you woke up.”

   – “I constantly see people rise in life who are not the smartest, sometimes not even the most diligent, but they are learning machines.”

3. On Decision Making:

   – “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.”

   – “I never allow myself to have an opinion on anything that I don’t know the other side’s argument better than they do.”

4. On Mistakes:
      – “I like people admitting they were complete stupid horses’ asses. I know I’ll perform better if I rub my nose in my mistakes. This is a wonderful trick to learn.”
   

5. On Economics:

   – “The best thing a human being can do is to help another human being know more.”

   – “The iron rule of nature is: you get what you reward for. If you want ants to come, you put sugar on the floor.”

6. On Temperament:

   – “You don’t have to be brilliant, only a little bit wiser than the other guys, on average, for a long, long time.”

   – “If you’re capable of being pleased by simple things, that’s a good skill. You might say that being pleased with simple things is the cheapest form of self-education.”

7. On Avoiding Mistakes:

 – “It’s not the bad ideas that do you in, but the good ideas that aren’t quite good enough.”

8. On Influence:

   – “The best way to get success is to deserve success.”

– “You’re looking for a mispriced gamble. That’s what investing is. And you have to know enough to know whether the gamble is mispriced.”

One of his greatest contributions to everybody living smarter and choosing better is his lecture and writings on “The Psychology of Human Misjudgment”. In that, he outlines 24 causes of our decision making errors in a manner that is simple and easy to understand. 

He also happened to be a great fan of Singapore’s founding father Lee Kuan Yew who he called the greatest nation builder in centuries.

Charlie Munger’s quotes reflect his pragmatic and multidisciplinary approach to life and investing, offering valuable insights for those seeking wisdom in various fields.

As a student and practitioner of his philosophy, I consider his passing a personal loss.

Rest in peace, sir.