Remembering Charlie Munger
A life of wit and wisdom
Good morning, friends. This is your Stock Market Rundown for December 4th, 2023. Thanks for joining me. Let’s dig in:
TODAY’S TOP STORY: CHARLIE MUNGER’S LEGACY
He was Warren Buffett’s right-hand man for 45 years, and a billionaire in his own right. Charlie Munger, who died last week at age 99, was just as famous for his curmudgeonly clapbacks as he was for his success as an investor.
After starting out as a lawyer, Munger joined Buffett as vice-chairman of Berkshire Hathaway in 1978. Warren had traditionally been a “cigar butt investor”, looking for the most beaten-up stocks. But Charlie’s philosophy was different: “buy wonderful business at fair prices.” He didn’t pick through the trash, but patiently waited for the world’s top companies to go on sale.
An example of one such company: Costco. Munger was a superfan of the warehouse retailer, even serving on the board. He called himself a “total addict” and said “I wish everything else in America was working as well as Costco does.” Charlie clearly couldn’t get enough of those gallon jars of pickles and $1.50 hot dogs.
And the worst investment, in Charlie’s view? Crypto. He said Bitcoin was “likely to go to zero” and compared crypto to an “open sewer full of malicious organisms.” Guessing we won’t see an NFT collection in Charlie’s will.
While he didn’t suffer fools gladly, Munger was an agreeable bestie: Buffett claims he and his longtime partner never had a single argument. He was also a generous soul who gave half a billion dollars to charity over his lifetime, including designing and funding a quirky student dorm with no windows at his alma mater, the University of Michigan.
Munger emphasized the role of rational decisions in achieving success, and made it to nearly the century-old mark while famously never exercising and eating whatever he wanted. The key lessons from Charlie Munger’s life: surround yourself with brilliant people, read every day, and eat peanut brittle.
SO WHAT ELSE IS GOING ON?
Emerging shoe companies like On and Hoka are giving incumbent sneaker brands a run for their money, if you’ll excuse the pun. The innovation and design of the upstarts is eating into the market share of once-cool Nike and Adidas, who suddenly seem more appropriate for the seniors center pickleball courts.
After defeating GM, Ford, and Chrysler in the strike battle, the United Auto Workers union has more momentum than a Cadillac Escalade rolling down a hill. Now, the UAW is aiming to unionize workers at Tesla and other non-union automakers. Musk might have to dole out some raises at the Fremont factory.
Speaking of Elon Musk, he had rude words for advertisers bailing on Twitter: “Go f*** yourselves.” He made the pugnacious pronouncement in a recent interview where he defended offensive tweets he posted, and claimed he’s “done more for the environment than any single human on earth.” Well, glad he has no issues with low self-esteem.
Silicon Valley venture capitalist Michael Rothenberg was found guilty of wire fraud and misappropriation of client money. The scammer lavished clients with hot-air-balloon wine tours and free massages; unfortunately, it was clients’ own money underwriting the fun, as well as Rothenberg’s luxury lifestyle. I doubt he’ll be washing five hundred-thread-count sheets at the prison laundry.
That's all for today, valued colleagues; let’s reconvene tomorrow morning, at the usual time. Yours in capitalism, The Axe
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