Berkshire Hathaway CEO Warren Buffet's right-hand man, Charlie Munger, has passed away at 99 after serving as the businessman's second-in-command for decades.
Berkshire Hathaway announced the death in a statement posted on its website that noted Munger passed on Tuesday in a California hospital. He was the company's vice chairman and is credited with helping Buffett build the firm into a legendary financial company.
Charlie Munger's Death
Berkshire Hathaway is known for its canny investments in companies such as Apple and GEICO, which have led to spectacular stock gains over the past several decades. In the statement announcing Munger's death, the company said it could not have become what it is today "without Charlie's inspiration, wisdom, and participation."
In Buffett's annual letter to shareholders last year, he calculated that Berkshire Hathaway's shares had gained more than 3,787,000% from 1965 through 2022. This was also compared with a 24,700% gain in the S&P 500 over the same period, as per CBS News.
Munger had served as a sounding board on investments and business decisions for Buffett. The two men are both Nebraska natives who worked at the grocery store that the latter's grandfather and uncle ran. They also attended the same high school but did not meet as children as they were six years apart.
The business people first met in 1959 at an Omaha dinner party when Munger was practicing law in Southern California and Buffett was running an investment partnership in Omaha. They instantly hit it off and kept communications open through frequent telephone calls and lengthy letters.
After exchanging investment ideas and buying into the same companies during the 60s and 70s, Munger joined Buffett at Berkshire Hathaway. In 1978, he became the company's vice chairman and has since helped the firm grow.
On top of being the vice chairman of Berkshire Hathaway, Munger was also a real estate attorney, the chairman and publisher of the Daily Journal Corp., a member of the Costco board, a philanthropist, and an architect, according to CNBC.
Helping Warren Buffett's Endeavors
Munger's fortune in early 2023 was estimated to be at $2.3 billion and while it is jaw-dropping, it pales in comparison to Buffett's monumental $100 billion estimated fortune. In 2021, during Berkshire Hathaway's annual shareholder meeting, Munger revealed a well-guarded secret: Vice Chairman Greg Abel "will keep the culture" after the Buffett era.
From 1984 to 2011, Munger was the chairman and CEO of Wesco Financial when Buffett's Berkshire Hathaway purchased the remaining shares of the Pasadena, California-based insurance and investment company.
Since starting as a textile manufacturer, Berkshire Hathaway has become a multinational conglomerate wholly owning various popular brands. These include Dairy Queen and Fruit of the Loom.
Thousands of Berkshire Hathaway shareholders pilgrimage to Omaha, Nebraska, every year to listen to Buffett and Munger answer their questions for several hours. After the former finished speaking, the latter often said, "I have nothing further to add," according to Yahoo Finance.
