Remembering Charlie Munger: 10 Pearls of Wisdom From the 'Oracle of Pasadena'

Charlie Munger, the longstanding partner of Warren Buffett and a cornerstone of Berkshire Hathaway (NYSE:BRKa) (NYSE:BRKb), whose contributions helped generate wealth and prosperity for all its shareholders, has passed away at the age of 99.

Munger's family members informed that he peacefully passed away in a California hospital this morning.

Warren Buffett, CEO of Berkshire Hathaway, acknowledged,

"Berkshire Hathaway could not have achieved its current status without Charlie's inspiration, wisdom, and active involvement."

Munger, often considered Buffett's right-hand man, embarked on an extraordinary business journey. Starting from working for Buffett's grandfather during the Great Depression, he became Buffett's indispensable partner at Berkshire Hathaway for over four decades. Despite different personalities and political affiliations, their partnership thrived, transforming Berkshire into a multi-billion-dollar powerhouse.

Recognized for his sharp wit and insightful perspectives, the affectionately nicknamed "Oracle of Pasadena," Charlie Munger, complemented Buffett's optimism with astute observations on investments and human nature.

Their partnership, which commenced in 1975 at Berkshire, reshaped investment strategies. Munger influenced Buffett to concentrate on acquiring outstanding companies at reasonable prices, broadening Buffett's perspectives beyond Graham's teachings.

Munger's wisdom, shared at Berkshire's annual meetings and through his investment initiatives, leaves a legacy not only in finance but also in philanthropy, modest living, and a profound skepticism towards transient trends like social media, cryptocurrencies, and artificial intelligence.

In his nearly century-long life, Charlie, known for his reserved demeanor and keen wit, imparted numerous pearls of wisdom. Today, we remember him through some of his best quotes, drawing inspiration not only in the realm of investments but also in life.

1. "Those who continue to learn will continue to grow in life."
2. "The best thing a human being can do is to help another human being learn more."
3. "Like Warren, I had a great passion to become rich, not because I wanted a Ferrari, but because I wanted independence. I wanted it desperately."
4. "Opportunities come to the prepared mind."
5. "It is remarkable the long-term advantage that people like us have gained by trying not to be stupid, instead of trying to be smart."
6. "Simplicity can improve performance, allowing us to better understand what we are doing."
7. "It is the waiting that helps you as investors and many people cannot handle waiting. If you have not had the deferred gratification gene, you will have to work hard to overcome it."
8. "Many people with high IQs are bad investors because they have a bad temperament."
9. "Imitating the herd invites regression to the mean."
10. "In all my life, I haven't met any wise people who didn't read all the time... none, zero. You would be amazed at how much Warren reads... than I read... They think I'm a book with a pair of legs sticking out."

Thanks for everything Charlie, and may you rest in peace now.

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Disclosure: The author does not own any of the securities mentioned in this report.