Charlie Munger, 97 years old American investor, a billionaire, vice chairman of Berkshire Hathaway and mentor of Warren Buffett is known for witty investment moves as well as unfiltered opinions.
The legendary tycoon from the stock market made it to headlines recently after he openly expressed his dislike for the Bitcoin success.
Wish to know more about Charlie Munger and why he does not support the concept of cryptocurrencies?
Charlie Munger has gained popularity primarily because he serves as the vice-chairman of Berkshire Hathaway Corporation. Not only this, he is often called the mentor and right-hand man of world-renowned investor Warren Buffett and their partnership is around 56 years old. Apart from this, he serves as the chairman of Daily Journal Corporation and director of Costco Wholesale Corporation.
So, at the age of 97 when people would prefer to enjoy their retirement, Charlie Munger, on the other hand, is still actively working and participating in the stock market.
Surprised? Well, his early life story is yet more fascinating!
Charlie Munger and Warren Buffett were born in the same city, Ohama, United States. During his teenage days, he used to do a part-time job at a grocery store owned by Warren Buffett’s grandfather.
Once out of school he went to pursue his graduation from the University of Michigan but dropped it midway to join the U.S Army Air Corps. A few years later, after being stationed in Alaska as an officer, he decided to take the next step in life and he left army life behind.
Now, ignoring the conventional option of first completing the undergraduate degree he took a risk and enrolled his name for an advanced graduate degree at Caltech and followed by it he went on to obtain a degree from Harvard Law School as well.
After he completed the course at Harvard he had to return back to support his family after the sudden demise of his father. That phase was the turning point of his life because that is when he met the Oracle of Ohama, Warren Buffett.
Having a Harvard degree in law, the next step would obviously be practising law and Charlie Munger did the same.
In 1962 he laid the foundation of a real estate law firm called Munger, Tollers and Olson. Before he founded the law firm, he was destined to do investment, therefore in some time he stopped his law practice and started to concentrate on a few of the investments he had made in the past.
Initially, when he started to focus only on investing, he had to face some huge losses one after the other. On the personal front, his health was not doing merry too. He developed a cataract and even after getting the surgery he had to get rid of one of the eyes because he was experiencing excruciating pain.
But if you think all these things stopped him, then you are wrong!
Charlie Munger returned with a bang and all this while his friend, Warren Buffett was there to support him. With his knowledge, patience and ace investing skills he kept investing in partnership with Warren Buffett and then there was no looking back. Finally, he became the advisor of Warren Buffett and in 1978 he was named as the vice-chairman of Berkshire Hathaway.
You would be astonished to know that in a total of 56 years of Charlie Munger and Warren Buffett’s partnership, Berkshire Hathaway has given more than 20,00,000% on the initial investment capital.
A checklist of Charlie Munger’s wisdom on investing is given below:
“The big money is not in the buying and the selling, but in the waiting”
“We (Charlie Munger and Warren Buffett) both insist on a lot of time being available almost every day to just sit and think.
“We have three baskets for investing: yes, no and too tough to understand.”
“Success means being very patient, but aggressive when it’s time.”
“You do not have to be brilliant, only a little bit wiser than the other guys, on average, for a long, long time.
“A great business at a fair price is superior to a fair business at a great price.”
Charlie Munger has openly expressed his scepticism about cryptocurrency in many interviews and the recent success of Bitcoin has not helped to change it!
When asked to comment about the same, he did not shy away from saying that he hates the Bitcoin success and does not appreciate a currency that can be used by kidnappers or extortionists. He even believes that the concept of cryptocurrency is against the interests of the masses and called it ‘disgusting.’
According to his understanding, Bitcoin is the replacement for gold in artificial form and he never invests in gold hence he would never buy Bitcoin. To watch and read his interview click here