He believed in what he called the "lollapalooza effect," in which a confluence of factors merged to drive investment psychology. We've gotten good at fishing where the fish are," the then-93-year-old Munger told the thousands of people at Berkshire's 2017 meeting. The second rule of fishing is to never forget the first rule. "I have a friend who says the first rule of fishing is to fish where the fish are. And like one of his heroes, Benjamin Franklin, Munger's insight didn't lack humor. But like his friend and colleague, Munger was a font of wisdom in investing, and in life. "I have nothing to add," he would say after one of Buffett's loquacious responses to questions at Berkshire annual meetings in Omaha, Nebraska. Munger was often the straight man to Buffett's jovial commentaries. Or as Munger put it at the 1998 Berkshire shareholder meeting: "It's not that much fun to buy a business where you really hope this sucker liquidates before it goes broke." "He weaned me away from the idea of buying very so-so companies at very cheap prices, knowing that there was some small profit in it, and looking for some really wonderful businesses that we could buy in fair prices," Buffett told CNBC in May 2016. It has since produced more than $2 billion in sales for Berkshire. Munger was chairman and CEO of Wesco Financial from 1984 to 2011, when Buffett's Berkshire purchased the remaining shares of the Pasadena, California-based insurance and investment company it did not own.īuffett credited Munger with broadening his investment strategy from favoring troubled companies at low prices in hopes of getting a profit to focusing on higher-quality but underpriced companies.Īn early example of the shift was illustrated in 1972 by Munger's ability to persuade Buffett to sign off on Berkshire's purchase of See's Candies for $25 million even though the California candy maker had annual pretax earnings of only about $4 million. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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