Charlie Munger, born on January 1, 1924 and passed away on 28 November 2023, is an American investor, businessman, and philanthropist widely recognised for his association with Berkshire Hathaway, one of the world's most successful conglomerates. Munger's life has been marked by a relentless pursuit of knowledge, a keen analytical mind, and a unique philosophy that has left an indelible mark on the realms of finance and business.

Early Life and Education

Charles Thomas Munger was born in Omaha, Nebraska, and grew up during the Great Depression. His early years were not without challenges, but Munger's intellectual curiosity and work ethic set the stage for his future success. He studied mathematics at the University of Michigan, but his education was interrupted by World War II when he served as a meteorologist in the U.S. Army Air Corps.

Academic and Professional Journey

After the war, Munger resumed his education at Harvard Law School, where he developed a multidisciplinary approach that would later define his investment strategy. It was at Harvard that he met Warren Buffett, a meeting that would alter the course of both their lives. Munger completed his J.D. magna cum laude in 1948 and started his own law practice.

However, his true passion lay in investments, and he eventually transitioned to finance. Munger founded his own investment firm and, through a series of partnerships, built a successful legal and investment career. His collaboration with Buffett began in the 1950s when they both served on the board of a textile company.

Partnership with Warren Buffett

The Munger-Buffett partnership became legendary. Munger joined Berkshire Hathaway as Vice Chairman in 1978, and his influence became increasingly evident in the company's investment approach. His emphasis on rationality, common sense, and a broad understanding of different fields greatly contributed to Berkshire's remarkable success.

Investment Philosophy

Munger's investment philosophy is characterised by the concept of "mental models" — a diverse set of cognitive frameworks derived from various disciplines. He believes in the importance of understanding a multitude of subjects, from psychology to physics, to make well-informed decisions. This interdisciplinary approach has become a cornerstone of his and Buffett's success.

Contributions to Berkshire Hathaway

Munger's influence extended beyond investment decisions. He played a pivotal role in shaping Berkshire's corporate culture, emphasising integrity, long-term thinking, and the importance of ethical business practices. Munger is also known for his candour and wit, often sharing his insights on various subjects during the annual meetings, which have become known as "Woodstock for Capitalists."

Philanthropy and Personal Life

In addition to his contributions to the business world, Munger is actively involved in philanthropy. He has made substantial donations to various causes, including education and medical research. Despite his considerable success, Munger has maintained a reputation for frugality, living in the same house he purchased decades ago.

Legacy

Charlie Munger's legacy is multifaceted. His impact on Berkshire Hathaway and the investing world is immeasurable. His ability to distil complex concepts into simple, actionable principles has made him a revered figure among investors. Munger's intellectual curiosity, humility, and lifelong commitment to learning serve as an inspiration for aspiring investors and business leaders.