Charlie Munger is successful in business and philanthropy. His primary role is as the second-in-command at Warren Buffett's joint holding company Berkshire Hathaway Inc. Munger is a long-time friend and business partner of Buffett's.
They have worked together to create Berkshire Hathaway, a global insurance powerhouse. Many people follow Munger's advice because of his successful investment strategies. He has established himself as an authority in the world of finance and investment.
Munger thinks that investors might minimize their error rate by being more aware of and rejecting their own dysfunctional decision-making styles. In this article, we will discuss Charlie Munger's net worth, investments, and charitable contributions.
Who Is Charlie Munger?
Charlie Munger is successful in business and philanthropy. Charles Thomas Munger entered the world on January 1, 1924, in Omaha, Nebraska. In 1948, he earned his Juris Doctor Magna cum laud from Harvard Law School.
While working with Wright & Garrett (later Musick, Peeler & Garrett), Munger relocated his family to California in the late '50s. After working for other companies for a while, he started Munger, Tolles & Olson LLP.
Then he left the legal field to focus on the financial business. At the beginning of his career in real estate, he worked as a partner with Otis Booth. He then formed the investing business Wheeler, Munger, and Company with Jack Wheeler.
Quick Facts about Charlie Munger
| Full name | Charles Thomas Munger |
| Date of birth | January 1, 1924 |
| Place of birth | Nebraska, Omaha |
| Gender | Male |
| Nationality | American |
| Spouses | Nancy Jean Huggins, Nancy Barry Borthwick |
| Profession | Businessman, Investor, lawyer |
| Source of Wealth | Investments, Business Ventures, Real Estate |
| Weight | 70 kg |
| Designation | Deputy Chairman, Berkshire Hathaway |
What Is Charlie Munger Net Worth?
According to Celebrity Net Worth, Charlie Munger is an American investor with an estimated net worth of $2.3 billion.
How Did Charlie Munger Build His Net Worth?
Charlie Munger amassed his fortune through investing and the power of compound interest. He began his legal career at Wright & Garret before leaving in 1962 to start his own real estate LLP. After some time, he zeroed in on the investment management field.
Before forming Wheeler, Munger, and Company, he worked as a real estate developer in partnership with Otis Booth. Before he shut it down in 1974 due to massive losses, his investment firm had bought a seat on the Pacific Coast Stock Exchange.
During the period his firm was active, he generated returns of about 20%, far more than the 5% of the Dow Jones at the time. Wesco Financial Corporation, which originally operated as savings and loan, is now a completely owned subsidiary of Berkshire Hathaway, and Munger served as its chairman.
The company expanded over time and merged with numerous other companies. Wesco's portfolio grew to be worth more than $1.5 billion. Investment-wise, Munger focuses on a handful of companies he understands well, such as Coca-Cola, Kraft Foods, Goldman Sachs, and Wells Fargo.
Warren Buffet, another successful investor who knew Munger from childhood, has said that the two of them have never butted heads. Now the vice chairman of Berkshire Hathaway, he is widely considered to be Buffet's eventual successor.
He is also the head of a California-based publishing house, where he serves as chairman of the Daily Journal Corporation.
Charlie Munger Career Transition From Law to Finance
As Buffett built his investing firm and Munger maintained his practice as a real estate attorney, they remained in touch after his first meeting at a dinner in Omaha in 1959. In the 1960s, on Buffett's recommendation, Munger stopped practicing law to focus on investment management.
This included a real estate development collaboration with billionaire newspaper executive Franklin Otis Booth. Before joining Berkshire, Munger ran his own investment firm, which, as Buffett noted in his 1984 essay “The Superinvestors of Graham-and-Doddsville,” generated compound annual returns of 19.8 percent between 1962 and 1975, significantly outperforming the 5.0 percent annual appreciation rate for the Dow Jones Industrial Average during the same period.
Buffett started buying Berkshire Hathaway stock in 1962; by 1965, he had become the company's Chair and CEO; by 1978, Munger had been promoted to the position of Vice Chair.
Charlie Munger's Charity Work
Charlie Munger, a philanthropist, has donated hundreds of millions of dollars worth of class-A shares from Berkshire Hathaway. The University of Michigan, the University of Michigan Law School, the Polytechnic School in Pasadena, Stanford University, and the University of California, Santa Barbara have all benefited from his charitable giving.
His March 2016 pledge of $200 million to UC Santa Barbara was one of his largest donations. His donation came with the stipulation that the institution builds a dorm according to Munger's odd specifications. The school's veteran architectural designer resigned in protest of Munger's plan because it called for bedrooms without windows.
What Kind of Investments Has Charlie Munger Made?
- Munger's Berkshire Hathaway investments span a wide range of sectors, from utilities and transportation to consumer products and insurance.
- Coca-Cola: He has been a major shareholder in The Coca-Cola Company for many years.
- American Express: In the early 1960s, when American Express was experiencing financial difficulties, Munger and Buffett made an investment in the company. Their bet paid off, and American Express is now a vital part of Berkshire Hathaway's portfolio.
- Wells Fargo: Both Munger and Buffett have been patient investors in the nation's third-largest bank.
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