Charlie Munger is Warren Buffett’s long-time business partner, and the Vice-Chairman of Berkshire Hathaway. Some people might even consider him the real brains behind the outfit.
However, Munger is hardly a carbon copy of Buffett: Munger is known to be a Republican, whereas Buffett has generally supported Democrats. Buffett devotes his time almost exclusively to his business, while Munger, who has not involved himself in the day-to-day operations of Berkshire for many years, is a generalist for whom investment is only one of a broad range of interests. Each man feels that their differences complement rather than detract from their relationship.
According to a Wall Street Journal article, the men share a view that the U.S. financial system will change, and criticize past excesses. “People were horribly overpaid for just pouring on leverage,” Mr. Munger said. The two investors have repeatedly warned about the systemic risks posed by the abuse of leverage and derivatives.
Although my opinions are at polar opposites concerning Alan Greenspan’s legacy, here’s a recent BBC News interview of him presenting his take on the current economic situation. I particularly liked his comparison of economic boom cycles with the use of heroin.
Related Links: Evan Davis Talks to Warren Buffett
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Some more commentary from Charlie Munger – Basically, It’s Over: A parable about how one nation came to financial ruin.
Posted 23 Feb 2010 at 4:03 pm ¶Trackbacks & Pingbacks 1
[...] markets are heading lower this week. What am I going to do this week? I’m going to listen to Charlie Munger’s advice about investing in the stock market. Perhaps I’ll even buy a few select stocks. [...]
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