Charlie Munger, the vice chairman of Berkshire Hathaway, passed away one month before his 100th birthday. His death leaves a legacy of business acumen and straightforward speaking that has influenced generations of investors. Munger’s investment philosophy had a significant impact on Warren Buffett, shaping the sprawling conglomerate worth almost $800 billion that Berkshire is today. He influenced Buffett’s approach to investing, steering him away from “cigar-butt” companies towards quality companies selling at fair prices.
As per Bill Stone, chief investment officer at Glenview Trust, recognizing a good business early leads to better decisions. Munger emphasized this throughout his career, making shrewd investments like Chinese electric automaker BYD and Costco Wholesale Corp, which he described as one of the best investments of his life.
In contrast to Buffett, Munger was known for his blunt and straightforward approach. He was a vocal skeptic of cryptocurrency and SPACs, using colorful language to convey his skepticism. Despite his directness, many investors respected his irreverence, considering it a positive quality in an industry often characterized by caution and conformity.
According to John Rogers, co-chief executive at Ariel Investments, Munger’s contrarian approach and independence of thought were crucial to his success. His legacy is one of candidness and critical thinking in the world of investing.
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