Yesterday we were met with the sad news that Charlie Munger had died. At the age of almost 100 he lived a long life and will be remembered as a businessman, investor and philanthropist. As the long time business partner of Warren Buffet he played a pivotal part in the growth of Berkshire Hathaway. Between them they basically invented 'value investing' and the continual focus on underlying business fundamentals.

Their combined approach to investing and subsequent success had an affect on many investors which can be seen in the mythic like status that Berkshire Hathaway holds. Every year tens of thousands of investors descend on its home town of Omaha, Nebraska at which the two men preach to loyal supporters.

Buffet often held his tongue but his friend Charlie didn't often miss an opportunity to speak his mind, leaving some great soundbites as part of his legacy:

• "Every time you hear ebitda, just substitute it with bullshit"
• “I think part of the popularity of Berkshire Hathaway is that we look like people who have found a trick. It’s not brilliance. It's just avoiding stupidity"
• “The difference between a good business and a bad business is that good businesses throw up one easy decision after another. The bad businesses throw up painful decisions time after time”
• "Take a simple idea and take it seriously"

But,  he was obviously more than the sum of his quotes.

• He had a multidisciplinary approach to learning and problem-solving. He drew insights from various fields such as psychology, economics, physics, biology, and history, and applied them to his investment decisions. He actually started out in Law and still had ownership in a law firm.
• He had a rational and humble mindset that allowed him to avoid biases and errors in his thinking. He was always willing to admit his mistakes and learn from them. He also sought out feedback and criticism from others, especially from his partner Warren Buffett. He once said, “We both insist on a lot of time being available almost every day to just sit and think". That is very uncommon in business today. 
• He had a long-term vision and a value-oriented philosophy that guided his investment choices. He focused on finding high-quality businesses with durable competitive advantages and strong management teams, and holding them for decades. He also avoided speculation and excessive diversification, preferring to concentrate his capital on a few great opportunities.

"It's so simple. You spend less than you earn. Invest shrewdly and avoid toxic people and toxic activities, and try and keep learning all your life"  Charles Munger (1924-2023)

Rest in Peace.