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©Reuters. FILE PHOTO: Berkshire Hathaway Vice Chairman Charlie Munger walks through a crowd during the annual Berkshire Shareholder Shopping Day in Omaha, Nebraska, U.S., May 3, 2019.REUTERS/Scott Morgan/File Photo
Jonathan Stempel
(Reuters) – Warren Buffett made no mistake: He misses Charlie Munger and Berkshire Hathaway (NYSE: ) shareholders will miss him too.
On Saturday, Buffett dedicated a section of his annual shareholder letter to Munger, who died in November at age 99.
Buffett, 93, said his longtime business partner was a key driving force behind his Omaha, Nebraska-based conglomerate, which is now worth more than $900 billion.
“Charlie is the ‘architect’ of what is now Berkshire, and I serve as the ‘general contractor,’ responsible for the day-to-day construction of his vision,” Buffett wrote.
Edward Jones analyst Jim Shanahan, who covers Berkshire Hathaway’s business, called it a “profound compliment” from arguably the most respected investor in the world.
“Buffett gives Charlie Munger a lot of credit for Berkshire’s success and his own personal success,” he said. “Buffett would not be as successful as he is without his wisdom and guidance.”
Munger’s death leaves Buffett without his closest confidant for more than 60 years, including the last 45 years as Berkshire’s vice chairman.
The two grew up in Omaha at the same time, although Buffett didn’t meet Munger until 1959.
Under their leadership, Berkshire became the owner of dozens of businesses, including Geico Insurance and BNSF Railroad, and held investments worth more than $350 billion, led by Apple Inc. USD stocks.
Munger is known for his common sense, witty and occasionally acerbic aphorisms.
“Jealousy is a very stupid sin,” he said in 2003, “because it is the only sin from which you can never derive pleasure.”
But he’s also known for changing Buffett’s approach to investing.
Buffett credits Munger with convincing him to “buy great companies at fair prices rather than average companies at fantastic prices” – Buffett calls the latter “cigar butts” because their businesses may still contain smoke.
Calling him Berkshire’s “architect” hints at Munger’s passion for architecture, including designing buildings.
Buffett also recalled Munger’s relative humility, saying Munger allowed him to “take a bow and accept accolades” while serving more of an older brother or fatherly role.
One place Munger will share the stage is at Berkshire Hathaway’s annual meeting, where he and Buffett will sit in front of tens of thousands of shareholders — and millions more online — to answer shareholder questions and often complement each other. idea.
Munger’s death means Buffett will likely only share the stage with Vice Chairman Greg Abel (who will eventually become CEO) and Vice Chairman Ajit Jain at this year’s annual meeting on May 4.
James Armstrong, a principal at Henry H Armstrong Associates in Pittsburgh, who has owned Berkshire stock for more than 35 years, said Buffett’s letter was a fitting epitaph for Munger. , and what he means to Berkshire.
“Charlie’s influence was huge,” he said. “The public may not have understood it, but it does now.”
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