It is sad seeing one of your heroes pass away. One usually wishes that they sort of live on forever. If you have not heard of Charlie Munger, I suggest you stop reading and spend time reading about him. It will be time well spent.
A wonderful summary - Who is Charlie Munger?
Don't forget to listen to this long meandering speech when you get the time. It is a wonderful compilation of mental models in a speech Charlie gave in 1995 at Harvard.
Charlie just passed away a few weeks shy of 100th birthday. Well.. what a life, a life truly well lived. Reading about him, my son was asking me yesterday why he was only worth $2.6B while his partner at Berkshire, Buffett is worth many times more, $100B+?
Well, it seems to me that he has given away a large chunk of his wealth over the years. From the days when he held over 2% of Berkshire Hathaway (which will make him slightly shy of $15B), he seems to have over time sold his shares to fund various philanthropic activities. Who cares if it is $1B, $10B or $100B....at the end of the day, it is what legacy you leave behind that matters.
Since I do not have a whole lot of time, I have compiled a list of his writings from various books. Let him speak for himself here -
Charlie on Family, Finances and Savings
He wanted a large family. He eventually had 8 children.
Losing his first son. A nasty divorce. Picking the straws after he was 30. Never self-pitying. Play with the hand you are dealt, as best as you can.
Playing a game that fits your talents, he says.
First break in real estate. Interestingly, he constantly avoided that for much of his later life. Having great partners.
Some old takes on Buffett. Munger. Guerin (third partner who over-leveraged and was not in the league of Buffett and Munger post 1980's).. Take on their earlier partnerships. Why only partner with great people.
Munger and his association with Buffett. How Buffett tells Munger to move into investments and start treating law as a hobby :-)
Law as a hobby...
Initial days.
Munger-Tolles Lawfirm. Wheeler-Munger Money management.
Leverage. Why we do not know about Guerin - it's very interesting.. he might have been as popular as Buffett-Munger if he had not leveraged and lost out.
Berkshire thoughts
Their first big buy - See's Candies.
Wesco Control.
Committing large capital to great ideas.
Delegation.
Bet sizing. Big Ideas.
Concentration.
Reading.
On opportunity cost. Having no master plan.
Leadership mistakes of Gutfreund.
Fed loses faith.
LTCM post-Solomon. Intellect is not key for investing.
Options.
Teaching Finance.
Incentives and biases.
Career choices. Starting early, fooling yourself.
First Million.
A modern-day Ben Franklin.
Take a bow. What a man. What a life well lived. This blog is more a note to myself than anyone else.
