Obituary: Charles T. Munger

My hero, Charlie Munger, passed away on November 28th, 2023. He was 99 years old. I met Munger in 2007 at my first Berkshire Hathaway shareholder meeting. It was admiration at first few words. I liked his depth of understanding in multiple domains, his honesty, and his willingness to share his wisdom. Since then I have read all his available writings and seen him many times in Omaha or Los Angeles at various shareholder meetings. He profoundly influenced Warren Buffett and the entire investing and business world. The world has lost a great leader, thinker, and teacher. 

Munger's response to my letter

    

Since meeting Munger, I continue to learn from him and share what I am learning.  Following are a few Munger teachings that have become my habits: 

1. Inversion: When you want to solve a problem, start with inverting the problem. For example, if you have to figure out how to keep the airplanes safe, work on figuring out how they can crash. 

2. Multi-disciplinary thinking: Acquire fundamental knowledge of all major disciplines of knowledge - Science, Economics, Engineering, etc. and approach every problem with perspectives from each discipline. For example, when you value land, you don't just look at the square footage. You understand the location, elevation, local economy, etc. 

3. Systems over people: Build/invest in systems (organizations) that are not dependent on a person at the top. Munger famously said that he would invest in a good business with a bad manager over a bad business with a good manager. 

4. China: Munger opened my eyes to the investment opportunities in China and how the Chinese economy is poised to do well because of the Chinese people believe in Confucianism. He continually encouraged US and China to work together. At the 2015 Berkshire shareholder meeting, he said "Nothing is more important for future of the world than a good relationship between the US and China”

5. Self-awareness: Understand your circle of competence and stay within it. Understand your biases and work towards compensating for them. Working everyday to become more rational is a moral duty. 

Munger at my desk

Today, I am a better business manager and investor because of Munger. Still, I have long ways to go to be half as wise as Munger. 

May Charlie Munger rest in peace. My condolences to his family and friends.