Charlie Munger at Berkshire Hathaway’s annual meeting in Los Angeles California. May 1, 2021.

Gerard Miller

As the world grieves the loss of Charlie Munger, one of the most influential investors, a profound sense of appreciation has emerged for his exceptional business acumen and his sharp wit.

Munger, who was Berkshire Hathaway’s vice chairman, passed away a month before his 100th birthday, leaving an indelible mark on generations of investors in various ways during his long and successful life.

Notably, Munger’s investment philosophy significantly influenced Warren Buffett, contributing to the vast conglomerate that Berkshire is today, worth almost $800 billion.

Early in their careers, Munger broadened Buffett’s investing approach, shifting him from buying cheap “cigar-butt” companies to focusing on quality companies at fair prices.

“Certainly as Berkshire shareholders, we owe them a debt of gratitude,” said Bill Stone, chief investment officer at Glenview Trust, adding that the timing of the decision-making process contributed to its success.

Recognizing a good business

Matt McLennan, co-head of the global value team and portfolio manager at First Eagle Investments, recalled a meeting with Munger more than 15 years ago, where he asked about how Munger and Buffett spent their time. Munger responded with “reading,” highlighting his ability to build mental models of how the world works for efficient decision-making.

Munger stressed the importance of recognizing a good business before it’s widely seen as such, as demonstrated by his successful investments in Chinese electric automaker BYD and Costco Wholesale Corp.

Unlike Buffett, who often tells stories to convey criticism, Munger tended to speak bluntly, making memorable remarks throughout his career.

As a critic of cryptocurrency and special purpose acquisition companies (SPACs), Munger was known for his straightforward and irreverent speaking style, which earned him respect for his independence and contrarian approach as an investor.