I first heard the sad news that my idol, Charlie Munger (Trades, Portfolio) had passed away from a friend who had previously attended the Daily Journal shareholders meeting. He messaged me right after Berkshire Hathaway's press release. When I first heard of the news, my first reaction was denial. I couldn't believe it because in late October Munger was still active and gave his first ever podcast talk. Throughout the podcast, he sounded like in healthy condition. His family and friends have been preparing a big party for his 100th birthday. I would not have imagined that he would have passed away this year.
On hearing the news, I was very sad and felt like a family member had passed away. Buffett and Munger are the two spiritual leaders for all the value investors around the world. Munger's death is a great loss not only for Berkshire Hathaway, but also for the global value investment community. He was a role model, and his teachings and wisdom have a profound impact on many value investors, including Buffett. I wonder if Buffett was prepared because in this year's letter to shareholders, he spent a whole section compiling his favorite Mungerism quotes, which is quite unusual.
What's comforting though, is that according to Berkshire's press release, that Munger "peacefully died. Also, according to Li Lu (Trades, Portfolio), Munger's also peacefully. This is what Li Lu (Trades, Portfolio) wrote in a statement regarding the passing of Charlie Munger (Trades, Portfolio),
"I was so deeply grateful that the Munger family made a special arrangement the next day for me to say a proper and private goodbye to Charlie. There, lying quietly with eyes closed, Charlie looked the same as ever, peaceful and sincere with a subtle smile on his face. There was a serenity about him. For a moment, I was reminded of the Living Buddhas I once saw in the Buddhist temples of Thailand. In the Buddhist tradition, the bodies of truly enlightened monks, through life-long self-cultivtion, can remain incorrupt, without any traces of mummification after death. In that moment, it is what I saw in Charlie, an enlightened sage with an incorruptible body, surrounded by a glimmer of eternal light."
Personally, I am also deeply grateful for Munger's teachings and inspirations. The first time I heard the name Charlie Munger (Trades, Portfolio) was 12 years ago, when I had just started my journey of value investing. Like most value investors, I was introduced to value investing by Warren Buffett (Trades, Portfolio). However, as I studied Buffett, I noticed that there was one name which frequently appeared in Buffett's words, and this person received extremely high praise from Buffett. His name is Charlie Munger (Trades, Portfolio).
Who is this Charlie Munger (Trades, Portfolio)? How could he receive such high praise from Buffett? My curiosity was aroused and I began to delve deeper into any information I can find about Munger, from reading Poor Charlie's Almanac to watching Munger's speeches and interviews.
Later on, I discovered that Munger was the chairman of a listed company called Daily Journal (NASDAQ:DJCO). He personally attended and answered questions at the annual shareholder meeting. So I started attending Daily Journal shareholder meetings and had the privilege to observe Munger closely up front. I also had the honor and opportunity to ask him some questions on a few occasions. More importantly, I met many like-minded Munger groupies during those Daily Journal shareholder meetings and became friends with a few. Those Daily Journal shareholder meeting trips will always be my best memories.
Munger has truly changed my life.The most important impact Munger had on me is the importance of rationality, not only in investing, but also in life. Munger never gave his precise definition of rationality, but I speculate that his view of rationality resembles that of Karl Popper. Popper's theory of falsification suggests that for a theory to be considered scientific, it must be able to be tested and conceivably proven false. This means that we should always seek disconfirming evidences, like Charles Darwn. Only when we are willing to face evidences that contradict our own ideas, rather than sticking to our own views, can we truly achieve self-growth and progress in life.
Another important impact Munger had on me is the importance of delayed gratification. In investing, delayed gratification means that we should always focus on the long term compounding of knowledge and conduct deep research. Doing so not only increases the success rate of our investment decisions, but also helps us stay calm in volatile market conditions and avoid being misled by short-term benefits.
In life, delayed gratification is equally important. Delayed gratification often means self-discipline, which is the foundation for achieving personal growth and success. For instance, good habits such as a healthy diet and rational thinking can not only keep our bodies and minds healthy, but also shape our personality and values. When we learn to postpone immediate satisfaction, we are building a stronger foundation for our future. Delayed gratification not only makes our lives more meaningful, but also gives us a greater sense of achievement in the journey of life.
There's so much more that I have learned from Munger. As Li Lu (Trades, Portfolio) wrote,
"Charlie's teachings will continue to spread, inspire and impact the world even more profoundly. That will be his eternal legacy.
We all mourn Munger's passing but take comfort in knowing that his legacy will live on forever. He will be truly missed by all of us. Rest in peace, Mr.Munger!
This article first appeared on GuruFocus.
