Benzinga - by Shanthi Rexaline, Benzinga Editor.
Berkshire Hathaway’s annual shareholder meeting on Saturday started on a solemn note, with a tribute to Warren Buffett’s trusted lieutenant and friend Charlie Munger, who passed away late last year just short of his 100th birthday.
Brother From Another Mother: Signaling the start of the meeting, Buffett introduced himself and turned the attention of the audience to a photo of himself and Munger, stating that it was taken in Savannah, Georgia, early in 1982.
“When Charlie and I first met … it was if twins who had been separated at birth were reunited,” the billionaire said.
There were a few important differences between the two legendary investors that people may have missed, he said.
“I was only interested in whether things worked, Charlie wanted to know how things worked,” Buffett said.
Giving an example, the billionaire investor said he would turn on a switch and if the TV or light bulb went on, he could care less about what had caused it to do so.
“Charlie, however, would want to understand every aspect of how the generator worked, how electricity traveled to his home, the merits of AC versus DC,” he said, while jokingly quipping that Munger understood electricity better than Thomas Edison ever did.
The Berkshire CEO also shared that Munger liked designing homes. When they first met in 1959, Munger was in the process of designing and constructing the house where he would reside for the rest of his life. Munger also expressed his desire to design a home for Buffett in Santa Barbara on a piece of property inherited by Berkshire, he mentioned.
Buffett said Munger’s “architectural thoughts” led to the Berkshire Hathaway of the present day. Munger first became a director of Berkshire in 1978. Buffett bought controlling interest in Berkshire through a small partnership in 1965, and Munger, at that time, did not have a penny invested in the company, he revealed. At that time, Munger told his friend that the purchase was plain dumb but also suggested what needed to be done.
Over time, the two worked together to achieve Munger’s vision, Buffett said.
“Charlie in effect became the architect of today’s Berkshire,” the investment guru said. “The carpenters and the others, that’s me, are needed but the architect is the genius who provides the blueprint.”
“Berkshire has become a great company with a unique group of owners. The directors of Berkshire are the trusties of the structure Charlie designed. That lives beyond his lifetime and will live far beyond mine.”
Living In Buffett’s Mind: During the meeting, there was a moment when Buffett redirected a question to his heir apparent Greg Abel, whom he accidentally called “Charlie.” The billionaire then corrected himself and said, “I’m so used to … I actually checked myself a couple of times already but I’ll slip, I’ll slip again.”
Warren Buffett slipping up and accidentally calling Greg Abel "Charlie" may be one of the most charming and perfect honors I've seen of the recently passed Charlie Munger.You know Charlie is deep in Warren's heart. $BRK pic.twitter.com/gayNqPDdLD
— Compound248