Charlie Munger is the Chairperson of Wesco Financial and of Berkshire Hathaway, where his lasting partner Warren Buffett serves as Chairperson. Buffett and Munger both are native of Omaha, Nebraska. After studying mathematics at the University of Michigan, and serving the U.S. Army Air Corps in the capacity of a meteorologist, he entered Harvard Law School without an undergraduate degree. After graduating in 1948 with a Juris Doctor Magna cum laude, he founded Tolles & Olson LLP and worked as a real estate attorney, until 1965. He then gave up the practice of law to give attention to managing investments. In his book Poor Charlie’s Almanack, Munger has introduced the concept of “Elementary, Worldly Wisdom” as it relates to business and finance. Munger’s worldly wisdom consists of a set of mental models framed as a latticework to help solve critical business problems. He has given an investment and business related design of “Elementary, Worldly Wisdom,” that comprises of a set of mental models, required giving answer to business related problems. Mental models echo his business philosophy. He states that for accomplishment in business one should be fair. All businesses based on immoral strategies fall down in the end. He believes that Americans have to face insolvent financial state of affairs in future because of flawed banking configuration. He used a term “Lollapalooza Effect” for a situation when numerous prejudices, inclinations, or mental models are active at associated time and trend. He considers Tupperware parties and open outcry auctions as a best example for the situation of “Lollapalooza Effect.” In March 2003, Rich Rockwood published his paper on “The Munger Network of Mental Models”.
Charlie Munger was born in Omaha, Nebraska, in January 1, 1924. Charles Thomas Munger, known as Charlie, studied mathematics from the University of Michigan. He graduated in 1948 from Harvard Law School. Later he left law to focus on investment. Early life of Charlie Munger is full of tragedies At the age of 21, he got married, after 8 years of wedding, they divorced .His wife kept everything and he left home with his children in pathetic conditions. After a year of that his 9 years old son Teddy Munger died of cancer .He lost all .Later because of soreness doctors removed his one eye. Around 35 years of age, he again got married now he has 8 children and many grandchildren. At the age of 25, his annual pay was 29,851dollars. Now his pay is 1 billion dollars. Now he accomplished his goal of house is lots of money, books, and giant family. At the age of 69, he was one of the 400 richest people in the world.
Munger has a Republican view, as opposed to Warren Buffett who is a democrat.
Before graduation, Charlie Munger qualified at Caltech and served U.S Army Air Corps.
During Graduation, he was an active member of the Harvard Legal Aid Bureau. He was a founder and employee as a property lawyer at Munger, Tolles & Olson LLP, since 1965. He and Otis Booth were associates in real estate progress. Then Charlie Munger and Wheeler established a “Wheeler, Munger, and Company” as partners. They closed the business after loss in 1976.
Currently, he is a Vice-Chairperson of Berkshire Hathaway Corporation. Warren Buffet (second richest man in the world), is a Chairperson of the Corporation. He has publically acknowledged Charlie Munger as “My Partner.” Charlie does not engage in daily procedures of Berkshire rather takes investment as a wide variety of benefits. He is a Chairperson of Wesco Financial Corporation, based in Pasadena, California. Wesco Financial Corporation is a subsidiary of Berkshire Hathaway Corporation. A single stock is 50% worth of the entire range. He is also a Chairperson of the Daily Journal Corporation, based in Los Angeles, California.
CHARLIE MUNGER & WARREN BUFFETT
Fortune Magazine’s 2006 profile of Munger includes this apt description of how the two men interact on stage during the marathon Q&A session that highlights each year’s Berkshire Hathaway shareholders meeting in Omaha:
Over the years, the Buffett-and-Munger show has taken on a somewhat mechanical maneuvering. The two men sit center stage, in front of a dark sea of shareholders. Questions are usually answered first by Buffett, who will answer and then stroll a bit in his unique way often with a one-liner or two mixed in for five minutes or so. At that point, he will look over to his partner and inquire, “Charlie?” Then one of two things occurs: Munger will either lean in or make a pointed, pithy, and often scathing comment that sometimes elicits gasps or loud guffaws from the crowd. On the other hand, Munger will simply remark, “I have nothing to say.”
He has given an investment and business related idea of “Elementary, Worldly Wisdom,” that is comprises of set of mental models, required to give solution of any business related problems. Mental models reflect his business philosophy. He states that for a success in business one should be fair, all businesses based on unethical strategies, collapse in the end. He believes that American citizens have to face impoverished financial situation in future because of erroneous banking structure. He used a term “Lollapalooza Effect” for a situation when numerous prejudices, inclinations, or mental models are active at allied instant and trend. He considers Tupperware parties and open outcry auctions as a best example for the situation of “Lollapalooza Effect.” In March 2003, Rich Rockwood published a paper on The Munger Network of Mental Models.