Charlie Munger was more than just Warren Buffett’s sidekick.
Every May, thousands of devoted fans gather in Omaha, Nebraska, the hometown of Berkshire Hathaway, to be in the presence of the investment firm’s two leaders: Warren Buffett, known for his folksy genius, and Charlie Munger, known for his sharp wit. However, for the most dedicated followers, a more exclusive event used to take place near Munger’s residence in Pasadena, a beautiful city on the outskirts of Los Angeles. At the Pasadena Convention Centre, Munger would hold court, entertaining the audience with his dry humor. Although recording devices were prohibited, attendees would frantically take notes, trying to keep up.
The last gathering occurred in 2011 when Munger, who passed away at the age of 99 in an LA hospital on November 28th, was still lively at 87. It was his final shareholder meeting as the head of Wesco, a financial conglomerate that was about to be fully acquired by Berkshire, marking the end of his one-man show. He spoke for three hours, as usual, playfully teasing the audience and telling them, “You folks need to find a new cult hero.” Nevertheless, he clearly relished delivering what one observer described as his sermon from the “Church of Rationality.” He beamed with pride when the audience gave him a standing ovation.
Reflecting on the notes from that meeting, the topics Munger discussed may seem random. He talked about what he believed was his insufficient legacy, although he took pride in qualities such as basic morality, self-discipline, and objectivity. He offered advice to wealthy parents on how to raise their children (warning against using artificial hardships as motivation, as it would only lead to resentment). He emphasized the importance of rationality in the face of cognitive biases (which he referred to as the ”Lollapalooza effect”). He even praised The Economist, describing it as his favorite “adult magazine,” according to one note-taker.
2023-11-29 15:08:03
Original from www.economist.com
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