Finance
Warren Buffett pays tribute to Charlie Munger on a ‘tough day’ for shareholders
A new atmosphere in the Woodstock of Capitalism.
The annual shareholder meeting of Berkshire Hathaway (BRK-A, BRK-B) on Saturday marked a new era for the Oracle of Omaha, Warren Buffett. It is the first time that the investing legend is missing his right-hand man Charlie Munger, who passed away on November 28, 2023, just before his 100th birthday.
While Munger’s absence is significant, his presence loomed large at the CHI Health Center in Omaha, Nebraska.
Charlie Munger’s name was one of the first words Buffett said when he took the stage.
Buffett described Munger as the “architect of Berkshire,” and his request for shareholders to “join me in clapping for Charlie” was met with cheers and a standing ovation from a crowd that included Apple (AAPL) CEO Tim Cook, Citigroup . C) CEO Jane Frasier and Microsoft (MSFT) co-founder Bill Gates.
“As far as having a partner goes, I simply can’t think of a conversation I had with Charlie where he misled me,” Buffett later told the packed room.
Buffett added: “In terms of money management, for decades there was no one better in the world to talk to than Charlie.”
The meeting kicked off with a video tribute to the former Berkshire Hathaway vice chairman, which included some of Munger’s famous one-liners from previous meetings, including “I think every time you see the word EBITDA, you should replace the word “bulls**t” revenue.”
EBITDA is more formally known on the street as an abbreviation for earnings before interest, taxes, depreciation and amortization. Companies tend to hype this metric as a purer look at the health of the business rather than net profit.
“It’s a bittersweet moment… a tough day for a lot of people,” Dan Sheridan, the new CEO of Brooks Running, told me of Munger’s absence.
Sheridan’s message was echoed by executives from other Berkshire companies.
Dairy Queen Executive Vice President Maria Hokanson described it as “an atmosphere of gratitude” and “a moment for us to reflect and celebrate his character and his wisdom.” Meanwhile, Pat Egan, former CEO of See’s Candies, noted that Munger’s investment influence is evident in the way Berkshire’s businesses operate.
“He’s still here in many ways… It’s about simplicity, doing the right thing, not thinking too much and taking care of the customer,” Egan told me.
Egan added: “You can’t replace Charlie Munger. He’s just an incredible, incredible presence and he’s missed.”
As the meeting got underway, Buffett made a mistake and called his successor Greg Abel “Charlie” when he asked him to respond to a shareholder’s question. His mistake was met with cheers from the crowd.
Buffett was also quick to highlight Munger’s influence on Berkshire’s portfolio, telling shareholders BYD (BYDDY) and Costco (COST) the two stocks Munger championed most.
“Charlie only said ‘buy, buy, buy’ twice in all those years. BYD was one of them and Costco was the other. Looking back, I should have been more aggressive in Costco. He was absolutely right in both companies.”
The unique and special partnership of Buffett and Munger became clear when the Oracle of Omaha was asked what he would do if he could spend another day with Charlie.
“Charlie loved learning. He liked a wide variety of things…We had as much fun, maybe even more fun, with things that failed because then we really had to find a way out,” said Buffett.
“It’s an interesting question,” Buffett added. “We’ve never had any doubts about the other, period… Charlie always said, ‘Just tell me where I’m going to die and I’ll never go there again.’ The truth is that he went everywhere with his mind, and that is why at 99 he was not only interested in the world, but the world was interested in him. It is remarkable.”
Seana Smith is an anchor at Yahoo Finance. Follow Smit on Twitter @SeanaNSsmith. Tips about deals, mergers, activist situations or something else? Email seanasmith@yahooinc.com.
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