Timeless Investment Lessons from Warren Buffett's Business Partner

A look at the world view and investment philosophy of one of the great investors of our time

Robert Goldsborough 25 April, 2013 | 6:13PM
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With Berkshire Hathaway's (BRK.A) annual meeting—the Woodstock of Capitalism—set for Saturday, May 4, many investors are preparing to flock to Omaha once again to hear pearls of wisdom both from Berkshire's chairman Warren Buffett and vice chairman Charlie Munger.

It's virtually impossible to overstate the influence that Munger, who recently turned 89 years old, has had on Buffett and on Buffett's investing discipline. Buffett regularly labels Munger as his "partner" at Berkshire, and fills the firm's annual shareholder letters with phrases like, "Charlie and I believe..." In fact, in Berkshire's 2012 letter, Buffett makes reference to their long and fruitful working relationship, noting that "more than 50 years ago, Charlie told me that it was far better to buy a wonderful business at a fair price than to buy a fair business at a wonderful price." That insight has guided Buffett over the years and helped him become more comfortable with paying up for outstanding businesses with economic moats, or sustainable competitive advantages.

Given Munger's age, no one can say how much longer investors can expect to see him sitting at Buffett's side each May, delighting audiences with his wisdom and also chiming in with his favourite line, "I have nothing to add," immediately after Buffett expounds on a topic.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Berkshire Hathaway Inc Class A420,791.40 USD0.64Rating
Berkshire Hathaway Inc Class B279.72 USD0.67Rating

About Author

Robert Goldsborough  Robert Goldsborough is an ETF Analyst at Morningstar.

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