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Billionaire Berkshire Hathaway vice chairman and investment legend Charlie Munger, who died Tuesday at the age of 99, spoke with 93-year-old Berkshire CEO Warren Buffett at the last Berkshire annual meeting earlier this year. Like him, he offered a predictably wide range of advice on estate planning. As chairman, he prepares to pass the keys of the empire to the next generation.
important facts
After shareholders questioned the billionaire duo in May. about As for their thoughts on how to ensure smooth estate planning, Buffett gave a lengthy response on the subject, stating that he won’t sign a will until each of his children has thoroughly reviewed it. , warned of the “terrible mistake” some people make when leaving a will. Children are completely out of the loop.
But Mr. Munger, Buffett’s foil, told his heirs to “just hold on to the damn stocks,” insisting that Berkshire’s “real estate” company, which has posted a 21% annual return since 1976, far stronger than the S&P 500, told his heirs to “just hold the damn stocks.” He pointed out “an example of a planning problem.” The average return is 11%.
Buffett countered that the ownership strategy is not “one size fits all,” but Munger said it’s only 95 percent of the time.
The hilarious exchange between Mr. Buffett and Mr. Munger, who have gained a lot of experience during their nearly 50 years together as Berkshire executives, not only sheds light on their relationship, but further deepens it. highlight. succession planning This is a question for the $780 billion company headed by Mr. Buffett, who is in his 90s.
Greg Abel, 61, head of Berkshire’s non-insurance business, has been chosen to replace Buffett as CEO, but insurance chief Ajit Jain, 72, will take a secondary role and Munger (Mr. Buffett’s eldest son, Howard Buffett, is Mr. Buffett’s de facto successor. It will be Berkshire’s non-executive chairman to facilitate the transition).
At Berkshire’s shareholder meeting this spring, Mr. Buffett discussed the importance of the structure that he and Mr. Munger have sat at the top of for years, advising Mr. Abel to “sit in a position that requires an equivalent or something close to it.” He advised that close attention should be paid to Jainism’s “best conduct.” advice. “
tribute
In a statement released by the company, Buffett said: Said Berkshire “could not have gotten to where we are today without Charlie’s inspiration, wisdom, and participation.” Many other prominent billionaires and businesses, including Apple CEO Tim Cook, said: Leader paid tribute to Munger. called Munger is a “giant of business and an avid observer of the world around him,” and Microsoft co-founder Bill Gates said Munger, along with Buffett, “is a huge figure in the world’s understanding of business and investing.” He said he had a “guiding influence” on him.Costco CEO Craig Jelinek Said Yahoo Finance said Munger was a “legend” in his own right, noting that Munger, who served on Costco’s board for many years, was an “invaluable asset” to the retailer.
Forbes rating
We estimate that Munger was worth $2.6 billion at the time of his death, while Buffett was worth $120 billion, making him the sixth richest person in the world.
important quotes
“You invest in businesses that fools can run, because someday fools will too. If you can’t tolerate a little mismanagement, it’s not a great business,” says Munger. Said In 2009.
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