The names Warren Buffett and Charlie Munger are synonymous with the business empire Berkshire Hathaway Inc. But before their rise to success, they were two ordinary guys from Omaha, Nebraska, who had a lot in common. Their friendship and business partnership were the result of a chance encounter with Dr. Edwin Davis, a well-known doctor in town.
In 1957, Davis told Buffett that he trusted him to manage money because he reminded him of someone named Charlie Munger. Unfamiliar with Munger at the time, Buffett replied, “Well, I don’t know who Charlie Munger is, but I like him.”
Davis and his wife, Dorothy, were determined to introduce the two men, and it finally happened in 1959, two years after Davis first mentioned Munger’s name to Buffett. Munger was back in Omaha after his father’s death, and the duo met for dinner. It was an instant connection, with Munger’s contagious laughter filling the air as he regaled Buffett with his wit and humor. The two men had found in each other kindred spirits and embarked on a partnership that would eventually transform the investing world.
Munger had already made a name for himself as a lawyer and investment manager, but he was looking for a new challenge. Joining forces with Buffett and Berkshire Hathaway was the perfect opportunity for Munger to bring his expertise to a company that shared his values and vision.
Munger officially joined Berkshire Hathaway in the mid-1970s, after wrapping up his work at Wheeler, Munger and Co. He quickly rose through the ranks and became the company’s vice chairman in 1978, a position he holds to this day.
In a CNBC interview from June 30, 2021, Buffett reflected on his decades-long friendship with Munger. He recounted how he knew from the moment they met over dinner that Munger would be in his life forever.
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“We were gonna have fun together, we were gonna make money together, we were gonna get ideas from each other, and we were both going to behave better than if we didn't know each other," Buffett said.
Buffett has often spoken about the qualities he values in Munger, including his intelligence, sense of humor and clear thinking. As Buffett wrote in his 2022 letter to shareholders, “Charlie and I think pretty much alike. But what it takes me a page to explain, he sums up in a sentence.”
Munger, who is now 99 years old, has also spoken highly of Buffett, praising their shared sense of humor and irreverence for the world’s seriousness. In a recent podcast, Munger shared some of his thoughts on investing and life, including the importance of patience, rationality and learning from the wisdom of the deceased.
In the world of investing, few partnerships have been as successful and enduring as that of Buffett and Munger. Together, these financial titans have proven to be a formidable team, staying focused on long-term investments and stubbornly holding onto them, regardless of the market’s froth. But it’s not just their investing prowess that sets them apart; their friendship and partnership serve as a model for how two people with shared values and passions can achieve great things together.
The Next Buffett-Munger Duo
The duo has built one of the most influential empires in finance, making some everyday investors billionaires in the process. While the Berkshire Hathaway empire isn't going away, it's not minting any more billionaires. But the next Berkshire Hathaway is being built as we speak in the form of a startup. When Berkshire Hathaway was being built, it was nothing more than a startup by two founders with a vision. For investors looking to get started in the world of startups, platforms like StartEngine and Wefunder allow anyone to invest in startups, including investing in StartEngine itself. This allows anyone to start building their startup portfolio and potentially even find the next Buffett-Munger duo before their companies hit the stock market.
See more on startup investing from Benzinga.
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