109: Reflecting On Charlie Munger
Charlie probably saved my life; and other thoughts on my hero
First Thoughts
They'll say when I die, "How much did Charlie leave?" And the answer will be, "I believe he left it all."
For whatever reason, this quote came to mind when I first learned about Charlie Munger’s death yesterday. It was a bit of semi-lightheartedness at a moment we all knew was coming. Yet I think it felt sudden because Charlie was so active right up until the end.
Someone said he died with his boots on, which is apt. I picture him reading an annual report or book about science in his final hours, making the Grim Reaper wait until he finished.
Charlie himself would very likely tell us we should not be sad given it is 100% certain we are all going to die. But I think he’d also recognize the biological / psychological necessity of grieving, even for a man 99.92 years old (yes, the second decimal was required).
It’s been heartwarming seeing all the tributes to Charlie posted on social media and elsewhere. One could feel the sadness in Becky Quick as she reflected on his life for CNBC - a mere days after filming a 100th birthday special with him.
Saving My Life
I don’t think it’s an exaggeration to say Charlie saved my life. Let me explain. I fancy myself a polymath/renaissance man like my hero. Which means I put no domain out of reach.
We live in a very wooded area and I taught myself how to climb and fell trees. For an investment of about $1,000, I figured I would save thousands of dollars by avoiding having to pay a tree service company to come in, on top of other benefits like exercise and learning new skills. What’s more, I truly enjoyed the process of learning about safety and knots, the physical structure of trees, various felling techniques, etc.
I took down a bunch of trees, and then I heard Charlie talking about using a walker instead of a cane. He’d seen many of his friends using a cane slip and fall, after which they rarely fully recovered. Better for him to skip the cane and go right to a walker, then to a wheelchair. Rational, right up to the end.
Well the more I started thinking about my tree-felling genius, the more I realized I’d been, to use a Mungerism, a total horse’s ass. Sure, I might save a couple tens of thousands of dollars cutting down my own trees, but the downside if I was wrong (falling, cutting off my own appendage, seriously injuring myself, or even death) couldn’t justify the upside.
Using tools Charlie taught me - probabilities and inversion - very likely saved my life.
Meeting Charlie in Los Angeles
In 2016, a few friends and I met in LA to attend the 2016 Daily Journal Meeting. It was a whirlwind of a trip featuring little sleep and red-eye flights, and navigating the streets of LA for the first time - it was wonderful.
This was just before CNBC started broadcasting the meeting, which took place in a (relatively) intimate setting of the Daily Journal headquarters with maybe 150 people. We were a few rows back from the “stage”. At the end of the few hours of Q&A, people started mulling around Charlie at the front, where he held court for probably another hour and a half.
I meandered my way to the front and asked Charlie if I could shake his hand. He said yes and we posed for this photo. It was a dream-come-true moment for a “groupie” like me, something I’ll cherish forever.
More Than Money
Outside of the BRK crowd people see Charlie (if they know the name at all) as either Buffett’s partner or a billionaire. They miss the incredible depth of his wit, wisdom, and passion for learning. They miss the Renaissance man, the polymath, the incredible man of Worldly Wisdom. This is why those of us who love Charlie love him so much. His humor and cantankerousness are just the cherries on top.
Charlie’s own hero was Benjamin Franklin, which goes a long way in explaining what he valued. I probably first really dived into Munger’s writings in the mid-2000s. I instantly gravitated toward his way of thinking. Poor Charlie’s Almanack, an updated version of which is due out on December 5 (link here), contains so much worldly wisdom I often say it’s the one book I’d take with me to a deserted island if forced to choose just one volume.
I share Charlie’s passion for learning about physics, chemistry, biology, psychology, and more, and relating it to investing. Investing is really just a product of these systems at work and, viewed as such, helps you understand it better.
In 2010, I wrote Charlie a letter trying to get a meeting with him using (not-so-subtlely) the psychological principles espoused by Robert Cialdini. The meeting didn’t happen but I did get a response! It reads:
Sorry, I can’t schedule one-on-one meetings over a crowded weekend, but I am glad you are carrying the torch.
It’s an honor to carry your torch, Charlie. Thousands of us “groupies” are better people for your generosity of wisdom.
Thank you, Charlie.
My condolences to Charlie's fans on his death.
Note: I named my daughter Charlie after the great man in 2020
Thank you for sharing your thoughts on Charlie. I made the trip to the last Wesco meeting and got a picture taken with him. It's fuzzy, but will be treasured. I first got to know him through Outstanding Investor's Digest, the May 1995, Dec 1997 and March 1998 issues. Those were my introduction to his rational thinking process. I passed these along to my sons and their friends in the hope that some of his wisdom would stick. I'm grateful that he shared his insights with us. He will be missed.