Berkshire Hathaway vice chairman Charlie Munger dies at 99
OMAHA: Warren Buffett’s trusted confidante Charlie Munger died on Tuesday at age 99, leaving a void at Berkshire Hathaway that investors said would be impossible to fill despite the conglomerate’s well-established succession plan.
Berkshire said Munger died peacefully at a hospital in California, where he lived. No cause was given. Munger would have turned 100 on January 1.
“Berkshire Hathaway could not have been built to its present status without Charlie’s inspiration, wisdom and participation,” Buffett, Berkshire’s 93-year-old chairman and chief executive, said in a statement.
The death of Munger, a Berkshire vice chairman since 1978, marks an end of an era in corporate America and investing. Alongside Buffett, Munger was respected and adored by investors around the world, many of whom flocked to Berkshire’s annual shareholder weekends in Omaha, Nebraska, to hear the duo’s folksy wisdom on investing and life.
Though Munger was not involved in Berkshire’s day-to-day operations, his death leaves Buffett without his longtime sounding board. Since becoming a Berkshire vice chairman, Munger worked closely with Buffett on allocating Berkshire’s capital and not mincing words when he thought his business partner was making a mistake.
Munger was known for steering Buffett away from purchasing what Buffett called “cigar butts” — mediocre companies that had a puff of smoke left and could be bought for very cheap prices — and instead favoring quality.
Berkshire is unlikely to replace Munger and has not publicly discussed any need or desire to do so. Two other vice chairmen, Greg Abel and Ajit Jain, have day-to-day oversight of Berkshire’s non-insurance and insurance businesses, respectively.
Munger’s death comes one week after Buffett donated about $866 million of Berkshire stock to four family charities and issued a rare shareholder letter acknowledging that his own time was finite, in the twilight of his own storied investing career.
In last week’s letter, Buffett said Berkshire was “built to last” and would remain in good hands without him.
He has never publicly signaled a desire to step down, including after a prostate cancer diagnosis in 2012. “At 93, I feel good but fully realize I am playing in extra innings,” Buffett wrote.
Under Berkshire’s succession plan, which Munger inadvertently mentioned at Berkshire’s 2021 annual meeting, Abel would become chief executive once Buffett is no longer in charge.
Buffett’s son Howard would become non-executive chairman, and one or two portfolio managers would take over investments.
Berkshire’s businesses include the BNSF railroad, car insurer Geico, and an array of energy, industrial and retail operations, as well as familiar consumer names such as Dairy Queen, Duracell, Fruit of the Loom and See’s Candies. It also owns hundreds of billions of dollars of stock led by Apple.