“My Dear Brother, Architect of Berkshire Hathaway,” Warren Buffett's Letter to Charlie Munger
Every year, Warren Buffett writes a letter to Berkshire Hathaway's shareholders to communicate financial results. Lessons learned and future perspective
But what was special this year was the first part of the letter. Buffett took the opportunity to praise Charlie Munger who died on November 28, 2023, just 33 days before his 100th birthday.
Warren Buffett Open the letter by saying: We both grew up in Omaha. But living in another city more than 80% makes it more difficult than when we first met. Fast forward to 1959, at which time he was already 35 years old.
And 3 years later, he decided to go into investment management business like me.
In 1962 Charlie told me frankly that Buying Berkshire Hathaway shares until you have control over the business is a wrong decision!
But he also said When you've done it He will be the one to help advise on how to correct this matter.
Even though Charlie and his family Not a single dollar was invested in Berkshire, the small companies and funds I was managing at the time.
Later, in 1965, he changed my mind again, forgetting about buying companies like Berkshire. Increase your investment in great companies at reasonable prices. and stop buying mediocre companies at great prices.
Simply put, I was told to forget all the investing ideas of my idol, Benjamin Graham. He further explained that this method actually works. But it is only suitable for small investments.
Of course, in the beginning I still stuck to the old methods. and admits that he made many mistakes Until finally, I tried to follow Charlie's advice.
Years later, Charlie became a partner in running Berkshire and always put me back on track. When my old habits began to emerge
Until the last day of my life He still plays this role. which makes us successful And there were better times than I ever dreamed of.
Charlie is "architect" of Berkshire, and I am just “Contractor” who brings his vision to life day by day
He has never attempted to take credit for himself as the architect of its success. But let me get the acclaim ahead.
Thinking about it, our relationship is probably similar. “A good brother mixed with a father.” Sometimes he already knew what was right. But let me decide. And when I make a mistake He never repeated that mistake.
in the real world Great buildings are associated with the architects who designed them. As for those who pour concrete install window Often forgotten soon
How Berkshire became the great company it is today I am the construction supervisor. But the heart is Charlie, who should be credited as the architect… forever.
Read the full letter from Charlie Munger – The Architect of Berkshire Hathaway here. https://www.berkshirehathaway.com/letters/2023ltr.pdf
Source: finnomena
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