Charlie Munger, called the ‘Oracle of Pasadena’ for his investment ability, began working at his grandfather’s grocery shop during the Great Depression, earning only $2 for a 12-hour shift.
Buffett Connection: Despite working at the same grocery business in Omaha throughout the 1930s, Munger and Warren Buffett did not meet until 1959, when they began a lifelong relationship that changed the investment landscape.
Reflections on the Great Depression: Munger, who was born in 1924 and lived through the Great Depression, believed that people nowadays are more dissatisfied despite encountering less adversity. During a Daily Journal meeting, he noticed this shift in viewpoint.
Jealousy as a Driving Force: Munger observed that jealousy plays a big influence in people’s dissatisfaction, claiming that even with a 600% increase in living standards, people might still feel miserable when comparing themselves to others.
Stock Market Insights: During the worst recession since the Great Depression in 2009, Munger emphasised the necessity of not waiting for the economy to stabilise before investing in equities, warning that it might be too late by then.
Munger, a World War II veteran, enrolled in the United States Army Air Corps. Despite not finishing his undergraduate degree, he graduated from Harvard Law School in 1948 and practised law in Los Angeles before entering the investing business.
Munger co-founded the law company that is now known as Munger, Tolles & Olson before shifting to investing in the mid-1960s, which marked a dramatic turn in his career trajectory.
Meeting Buffett: Munger and Warren Buffett first met at the Omaha Club in 1959. Their first meeting opened the way for a long-term relationship, with Munger describing Buffett as “no ordinary human being.”
Time Invested in Friendship: Munger’s lengthy chats with Buffett piqued his wife’s interest, forcing her to question the time invested. Munger’s remark demonstrated his deep affection and respect for Buffett.
Munger’s net worth was assessed by Forbes to be $2.6 billion at the time of his death. His journey from a difficult background during the Great Depression to becoming an investment legend demonstrates his tenacity and accomplishment.
