Warren Buffett’s right-hand man, Charlie Munger, passes away at 99

Warren Buffett’s right-hand man, Charlie Munger, passed away on Tuesday at the age of 99, leaving a void in Berkshire Hathaway that investors say is impossible to fill despite a well-established succession plan for the conglomerate, Reuters reports.

Berkshire stated that Munger died peacefully in a California hospital, where he lived. No cause was given. Munger would have turned 100 on January 1.

– Berkshire Hathaway could not have been built to its current status without Charlie’s inspiration, wisdom, and participation – said Buffett, the 93-year-old chairman of Berkshire.

Munger’s death, who served as Berkshire’s vice chairman since 1978, marks the end of an era in corporate America and investing.

Alongside Buffett, Munger was respected and adored by investors worldwide, many of whom flocked to Berkshire’s annual shareholder weekends in Omaha, Nebraska, to hear the duo’s folksy wisdom on investing and life. Although Munger was not involved in the day-to-day operations of Berkshire, his death leaves Buffett without his right-hand man.

Investors also said that while Berkshire has appointed managers they trust to maintain the company, Munger’s loss will be deeply felt.

– He was certainly one of the greatest investors on the team with Buffett – said Rick Meckler, a partner at Cherry Lane Investments in New Jersey.

Munger was known for steering Buffett away from buying what Buffett called ‘cigar butts’ – mediocre companies that could be purchased at very low prices.

Manager Whitney Tilson, who personally knew Munger, said that a ‘generation of investment managers’ learned something of their craft from Munger and Buffett. Tilson said he attended dozens of meetings led by these men and that Munger once privately said: +All I want to know is where I will die so I never go there.’

The Future of Berkshire

Munger’s death comes a week after Buffett donated about $866 million worth of Berkshire shares to four family charitable organizations and issued a rare letter to shareholders acknowledging that his time was limited, in the twilight of his renowned investment career. In last week’s letter, Buffett stated that Berkshire was ‘built to last’ and that it would remain in good hands without him. He has never publicly expressed a desire to step down, including after his prostate cancer diagnosis in 2012.

– At 93, I feel good, but I fully understand that I am playing in overtime – wrote Buffett.

According to Berkshire’s succession plan, which Munger casually mentioned at the Berkshire annual meeting in 2021, Greg Abel would become CEO once Buffett is no longer at the helm. Abel is currently one of two vice chairmen. Buffett’s son Howard would become non-executive chairman, and one or two portfolio managers would take over investments.