Updated February 25th, 2024 at 14:07 IST

Buffett Pays Tribute to Charlie Munger as Architect of Hathaway's Success

Munger, who passed away on November 28, played a very important role in shaping the company's trajectory.

Reported by: Business Desk
Warren Buffett | Image:X
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Buffet pays tributes to Munger: Warren Buffett, the legendary investor, and Berkshire Hathaway founder, penned a note in which he pays homage to his late business partner Charlie Munger, hailing him as the architect behind the success of Berkshire Hathaway.

Munger, who passed away on November 28, 2023, played a very important role in shaping the company's trajectory.

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Buffett reminisces about his first encounter with Munger in 1965 when the latter, with only three years of money management experience, candidly pointed out a mistake in Buffett's decision to buy control of Berkshire. Despite having no financial stake in the company at the time, Munger assured Buffett that he would guide him in correcting the error. 

Munger advised Buffett to focus on acquiring "wonderful businesses purchased at fair prices" rather than pursuing fair businesses.

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Over the years, Munger continued to influence Buffett's decisions, serving as a grounding force and steering him away from old habits. 

Despite Munger's significant contributions, Buffett notes that Munger never sought credit for his role as a creator, preferring to let Buffett take the limelight. 

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Munger played the role of an older brother and a supportive father figure, allowing Buffett to lead, even when he was certain of being right.

Buffett metaphorically compares Berkshire Hathaway to a great building, emphasizing how Munger, like an architect, was instrumental in its construction. 

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In the real world, architects are often remembered for great buildings, while those involved in the construction process are forgotten. In this analogy, Berkshire Hathaway stands as a testament to Munger's architectural brilliance, with Buffett acknowledging Munger's pivotal role in the company's success.

 

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Published February 25th, 2024 at 14:05 IST