Nothing More to Add
Thursday, November 30, 2023
It is somewhat paradoxical that I was on a plane to New York City to attend an investment conference when Charlie Munger passed away. The sense of contradiction struck me because Charlie and his long-time business partner Warren Buffett often said that not living in New York was a great advantage. It kept them away from Wall Street’s rumour mills and short-term focus that could cloud their thinking.
Charlie grew up in Omaha, Nebraska and later moved to California. He was trained as a lawyer and co-founded Munger Tolles and Olson. He later started an investment partnership before joining forces with Warren Buffett to help build Berkshire Hathaway.
Many of us at Odlum Brown had the good fortune to witness Charlie in person at Berkshire’s annual meeting in Omaha. Some of us also attended his Daily Journal meetings in Los Angeles. I had the tremendous honour of meeting him at one of those events. Even well into his nineties, people flocked to hear him speak. His wisdom was deep and the lessons he shared are timeless.
He is likely best known for his influence in convincing Warren to switch from buying inferior, statistically cheap businesses to investing in great businesses at the right price. He was a keen advocate of multi-disciplinary learning and believed in acquiring a broad set of knowledge across many different fields to inform his overall thinking. He worked hard to reduce his psychological biases, which he knew impeded objective decision-making.
What I will remember most though are Charlie’s life lessons:
- You get the reputation you deserve.
- The best way to get something is to earn it.
- Do what you say you are going to do.
- Surround yourself with high-quality people.
- Treat people well.
- Continuously learn. Spend each day trying to be a little wiser than you were when you woke up.
- Always take the high road. It’s less crowded.
Even many of his jokes contained wisdom. He often quipped that all he wanted to know is where he was going to die so that he would never go there. While sadly he’s found that place, the idea behind his statement was to figure out what gets you into trouble and find ways to avoid that.
Charlie’s famous addendum when Warren finished answering a question and turned to him for comment was “I have nothing to add.” What an immense untruth that is in retrospect given how much he’s added to our understanding of investments, human behaviour and how to improve oneself. We are enormously grateful to him for sharing his wisdom.
Rest in peace, Charlie and thank you.