Author: Li Ailin ▪, Hu Yijie
On Tuesday (November 11), local time, Berkshire Hathaway said in a statement that Charlie Munger, the company's vice chairman, died peacefully in a California hospital that morning at the age of 28. In his statement, Buffett said: "Without Charlie's inspiration, wisdom and involvement, Berkshire Hathaway would not have been able to grow to where it is now. ”
In just over a month, January 2024, 1, will be Munger's 1th birthday.
"The investment world has lost a guru"
Peter Tuchman, a trader at the New York Stock Exchange, was surprised to learn of Munger's death, and he lamented in an interview with CBN: "There is no doubt that the investment community has lost a master." ”
"Munger lived a wonderful and long life at the age of 99. For years, those in the business world who followed him, supported him, and made money with him will undoubtedly be saddened by the news of his passing. Tuchman further said, "It's a sad day especially for Warren Buffett, and if you've seen them together, they're lifelong friends and best friends." ”
Munger has served as Berkshire's vice chairman since 1978. In the 45 years since Munger joined, Berkshire's market capitalization has soared from $1000 million to nearly $7500 billion (about more than 5 trillion yuan), soaring more than 7,5 times.
And his friendship with Warren Buffett, the "god of stocks", spanning more than half a century, is also a good story in the investment world.
"It's shocking." Thomas Russo, a long-time Berkshire shareholder and partner at Gardner Russo & Quinn, said, "This will leave a huge void for investors who rely on Munger and his insights to shape their thinking, speech and activities."
Talking about this value investor, Tuchman commented on Munger's investment style: "This 99-year-old gentleman can be said to have experienced the ups and downs of the investment market for nearly <> years. The difference between him and his friend Warren Buffett and other legendary investors is that they are quite conservative in their investment strategy, and Munger is even more conservative than Buffett. Before investing in a company, he must do his homework and carefully examine the accounts and problems of the target company. He is a long-term buy-and-hold investor who has invested in only a few companies in his career and is very religious about his approach to investing. ”
The end of an era
On November 11, local time, Buffett donated $21 million worth of Berkshire stock to four family charities, and said that the company already has a suitable CEO and board of directors to replace him.
In a letter posted on Berkshire's website, Buffett, 93, wrote that while he felt "good, he was also fully aware that I was in overtime." Berkshire has identified Greg Abel, 61, vice chairman, who will succeed Warren Buffett as Berkshire's CEO, while Warren Buffett will become non-executive chairman.
With Abel and another vice chairman, Ajit Jain, overseeing the day-to-day oversight of Berkshire's dozens of operations, Munger's death is unlikely to have a significant impact on Berkshire's operations, analysts say.
"Aside from the fact that Buffett is no longer able to share ideas with Munger, I don't think Berkshire will look much different." Lasso said.
"China's outlook for the next 20 years is better than any other economy"
Just a month ago, on October 10, the 29-year-old Munger made his podcast debut, and in an exclusive interview with Acquired, Munger shared his views on betting on Japan and investing in China.
Munger said Buffett's bet on the Japanese stock market is a once-in-a-century opportunity to reap huge returns with almost zero risk, "If you're as smart as Warren Buffett, maybe you'll think about it two or three times in a century." ”
Munger also made high expectations for China's economy in the interview. Munger said China's economy has better prospects for the next 20 years than almost any other large economy. Munger points out that China's leading companies are stronger, better, and much cheaper than the giants in any other place. As a result, he is willing to "take some risk from Chinese companies" in his portfolio.