At the time of his death, Charlie Munger had a net worth of $2.6 billion.
PHOTO courtesy | Williams News
On the morning of November 28th, 2023, Charlie Munger, the renowned investor, passed away at the age of 99. He had advised Warren Buffett for nearly fifty years.
At the time of his death, Munger was actively serving as a real estate lawyer, sitting on Costco’s board of directors, practicing as a skilled (though unlicensed) architect, and passionately engaging in philanthropy.
His philanthropic endeavors included donating tens of millions to various educational institutions, often with the stipulation that they adhere to his architectural designs for the buildings funded by his contributions.
Charlie Munger and Warren Buffett
Much like Warren Buffett, known as the “Oracle of Omaha,” with whom he collaborated closely for many years, Munger was a value investor who had a keen eye for identifying robust companies trading at discounted valuations.
Together, they spent decades selectively choosing resilient businesses with promising long-term growth prospects, while observing how other market participants fell prey to what Munger termed the “lollapalooza effect” — a phenomenon describing the combined influence of various cognitive biases leading to irrational investor behavior.
Buffett attributes a significant shift in Berkshire’s investment approach to Munger.
Instead of focusing solely on acquiring struggling yet inexpensive businesses, they turned their attention towards investing in exceptionally strong enterprises available at fair or relatively low prices, which they viewed as solid long-term investments.
Buffett also held Munger in high regard personally, expressing in a 2018 CNBC interview, “He’s made me a better person than I would have otherwise been … I’ve lived a better life because of Charlie.”
In his most recent shareholder letter dated February 24th, Buffett reiterated Munger’s pivotal role, stating, “Berkshire has become a great company.
Though I have long been in charge of the construction crew; Charlie should forever be credited with being the architect.”
Charlie Munger Net Worth
At the time of Charlie Munger’s death, “Forbes” estimated his net worth to be approximately $2.6 billion on November 28, 2023, the same day he passed away.
Warren Buffett’s net worth was concurrently estimated at $119.5 billion.
Berkshire Hathaway, the holding company they both dedicated nearly 50 years to growing, boasted a market capitalization of $784.94 billion, positioning it as the 9th highest-valued public company globally.
Charlie Munger Stocks at Berkshire Hathaway
Munger held most of his net worth in Berkshire Hathaway Class A stock, possessing 4,033 shares as of October 5, 2023.
With the company’s share price at $546,869 on the day of his passing, his 4,033 shares would have been valued at over $2.2 billion.
Despite his significant philanthropic efforts, which accounted for the majority of his shares over his career, Munger’s net worth would have been considerably higher. In 1996, he owned 18,829 shares, which would now be valued at nearly $10.3 billion.
While this represents the earliest year for which his stock ownership disclosures are available, it’s widely believed that he possessed a larger number of shares earlier in his career.
Relationship with Berkshire Hathaway
Munger’s association with Berkshire Hathaway traces back to his childhood, although he didn’t meet Buffett until 1959 and didn’t assume the role of vice chair at Berkshire until almost two decades later.
Before joining Berkshire, Munger chaired Wesco Financial, initially a savings and loan institution that evolved into an investment company with a substantial portfolio of well-established companies including Goldman Sachs, Coca-Cola, US Bank, Kraft, P&G, and others.
Berkshire gradually acquired Wesco, culminating in full ownership in 2011 when it purchased the remaining 20% stake.
Charlie Munger Wits
Throughout their enduring partnership, Munger and Buffett provided constant counsel to one another, with Buffett remarking that they shared such similar thinking “that it’s spooky.”
In instances of disagreement, Buffett noted that Munger’s response would often be, “Warren, think it over and you’ll agree with me because you’re smart and I’m right.”
To the public, and likely to Warren Buffett himself, Charlie Munger appeared more akin to a co-CEO rather than just a vice-chair.
In Berkshire’s earnings calls and annual shareholder meetings, Munger served as the emcee alongside Buffett, fielding investors’ questions for extended periods.
Despite being known for his brevity compared to his business partner, Munger was often asked to share his own perspective but would frequently respond with his trademark line, “I have nothing to add.”
However, when Munger did speak, his remarks were sharp and memorable.
He criticized the “fear of missing out” (FOMO) mentality prevalent among many investors, emphasizing the importance of having the character to resist mediocre opportunities and sit on cash.
Many of his notable speeches and investment insights were compiled into a book titled “Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger,” a nod to Benjamin Franklin’s “Poor Richard’s Almanack,” a publication Munger greatly admired.
The future of Berkshire Hathaway and who might succeed Munger as vice-chair remains uncertain.
Munger’s absence will undoubtedly be felt by his colleagues, particularly by Warren Buffett, the CEO of Berkshire Hathaway, who considered Munger not just a close friend but also a trusted confidant.
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