In This Article:
Iconic investor and Berkshire Hathaway (BRK-A, BRK-B) Vice Chair Charlie Munger passed away on November 28 at the age of 99 and his impact on the business world is undeniable. George Washington University Professor Lawrence Cunningham and Wall Street Journal Special Writer Gregory Zuckerman join Yahoo Finance Live to weigh in on what made Munger's friendship and business partnership with CEO Warren Buffett so special and unique.
Cunningham insists that the most important characteristic in finding similar success to Munger and Buffett is to “find someone to bounce things off of”, noting Munger’s candid approach to advising Buffett “saved Berkshire many billions of dollars."
With Munger’s passing many questions about the future of investment have arisen and Zuckerman acknowledges “things have changed" in the investing landscape, but Munger's approach individually and with Buffett has reshaped key principles.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Video Transcript
- If someone is watching this right now, and they're trying to figure out, can I invest like a Charlie Munger? Can I do what he did? What are some of his characteristics, and can they be replicated? Can I jump into his shoes and find success?
LAWRENCE CUNNINGHAM: Well, I'd say the number one lesson is to find a good partner. Both Charlie and Warren credit each other for their own success. And they would have been successful without each other. But the stratospheric successes they achieved was because they had a reliable, trustworthy, intelligent partner.
So that would be tip number one, whether it's your spouse, your business partner, or someone. Could be your parents. But find someone to bounce things off of.
Charlie saved Berkshire many billions of dollars by telling Warren no, don't do that. That'd be a mistake. And so, having someone to check your logic, check your rationality, would be extremely important.
- Are there other investing legends alive right now, outside of Warren Buffett? Do you see a next generation forming, or who does that torch get passed to, from Buffett and Munger?
LAWRENCE CUNNINGHAM: Well, they've got a great brain trust right there at Berkshire Hathaway with Todd Combs and Ted Weschler who manage the common stock portfolio. And Greg Abel and Ajit Jain, who are the vice chairs, who allocate abundant capital. And so, that generation is formidable at Berkshire. And indeed, at least in terms of the philosophy that Charlie is famous for, tens of thousands of people have learned it, have embraced it. And I think they'll continue to flourish by applying those principles.