{"id":23750,"date":"2024-08-27T23:56:00","date_gmt":"2024-08-27T15:56:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=23750"},"modified":"2026-07-06T20:34:23","modified_gmt":"2026-07-06T12:34:23","slug":"charlie-munger","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/","title":{"rendered":"Charlie Munger, a great investor worth remembering"},"content":{"rendered":"\n<p>Recommend to read my post of Charlie Munger&#8217;s bio post &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/03\/13\/damn-right-charlie-mungers\/\">&#8220;Damn Right&#8221;, Charlie Munger&#8217;s biography book<\/a>&#8220;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Introduction\" >Introduction<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#A_famous_investing_guru\" >A famous investing guru<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Net_worth_and_personal_investments\" >Net worth and personal investments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Transforming_Buffett\" >Transforming Buffett<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Sees_Candies\" >See&#8217;s Candies<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Distinctive_personality\" >Distinctive personality<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Outspoken\" >Outspoken<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Disdain_for_Wall_Street\" >Disdain for Wall Street<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Against_cryptocurrencies\" >Against cryptocurrencies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Popular_in_China\" >Popular in China<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Companies_highly_connected_to_Munger\" >Companies highly connected to Munger<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Berkshire_Hathaway\" >Berkshire Hathaway<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Daily_Journal\" >Daily Journal<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Costco\" >Costco<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Himalaya_Capital\" >Himalaya Capital<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#BYD\" >BYD<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Investment_style\" >Investment style<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Stay_rational\" >Stay rational<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Expand_your_knowledge\" >Expand your knowledge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Trait_is_more_important_than_IQ\" >Trait is more important than IQ<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Concentrate_investment\" >Concentrate investment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Circle_of_competence_and_strengths\" >Circle of competence and strengths<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Invest_in_outstanding_companies_at_reasonable_prices\" >Invest in outstanding companies at reasonable prices<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Against_EBITDA\" >Against EBITDA<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Buffett_and_Munger\" >Buffett and Munger<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Official_response_from_Berkshire_Hathaway\" >Official response from Berkshire Hathaway<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Buffett_pays_tribute_to_Munger\" >Buffett pays tribute to Munger<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Key_contribution_to_Berkshire_Hathaway\" >Key contribution to Berkshire Hathaway<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Buffetts_thoughts_on_Munger\" >Buffett\u2019s thoughts on Munger<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Books_recommended_by_Munger\" >Books recommended by Munger<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Poor_Charlies_Almanac\" >Poor Charlie&#8217;s Almanac<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Damn_Right\" >Damn Right<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Charlie_Munger_The_Complete_Investor\" >Charlie Munger: The Complete Investor<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#The_Warren_Buffett_Portfolio\" >The Warren Buffett Portfolio<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#The_TAO_of_Charlie_Munger\" >The TAO of Charlie Munger<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Poor_Richards_Almanack\" >Poor Richard&#8217;s Almanack<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-37\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Munger_recommends_more_famous_and_classic_books\" >Munger recommends more famous and classic books<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-38\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/#Relative_articles\" >Relative articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Introduction\"><\/span>Introduction<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_famous_investing_guru\"><\/span>A famous investing guru<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Charlie Munger is one of my most admired investing guru and thinkers. He passed away on November 28, 2023, only 33 days away from his 100th birthday.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Net_worth_and_personal_investments\"><\/span>Net worth and personal investments<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Munger&#8217;s own statements say that the majority of his wealth comes from four investments: Berkshire Hathaway (tickers: BRK.A and BRK.B), retailer Costco (ticker: COST), Himalaya Capital Management, and investments in <a href=\"https:\/\/www.aftonprop.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Afton Properties<\/a>, a real estate company that owns apartment buildings in California and New Jersey.<\/p>\n\n\n\n<p>At the time of his death, Munger&#8217;s net worth was estimated at $2.4 billion, according to Forbes.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Transforming_Buffett\"><\/span>Transforming Buffett<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Buffett praised Munger for broadening his investment strategy from a preference for buying distressed companies at low prices in the hope of profiting from them to focusing on higher-quality, undervalued companies. He said Munger has always emphasized: &#8220;Let&#8217;s buy really good companies.&#8221;<\/p>\n\n\n\n<p>An early example of this transformation was when Munger persuaded Buffett to agree to Berkshire Hathaway&#8217;s acquisition of See&#8217;s Candies for US$2,500 in 1972. Although See&#8217;s Candies&#8217; annual pre-tax profit that year was only about US$4 million, since then, It generated more than $2 billion in sales for Berkshire Hathaway. \u201cHe actually hit me over the head with a two by four from the idea of buying very so-so companies at very cheap prices, knowing that that was some small profit and looking for really wonderful businesses that we could buy at fair prices,\u201d Buffett said in an interview.<\/p>\n\n\n\n<p>Buffett later quickly discovered the problem with the cigar butt investment method (please see my previous post <a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/07\/cigar-butt-investment\/\" target=\"_blank\" rel=\"noreferrer noopener\">&#8220;Problems with Cigar Butt Investment<\/a>&#8220;). If he had not made adjustments early, we probably would not know about this in the investment world today. Because he will not become so successful and great\u2500\u2500\u2500This is what makes Buffett so great. You can refer to my other article &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/04\/07\/buffett-deserves-study\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why Buffett deserves further study?<\/a>&#8220;.<\/p>\n\n\n\n<p>Buffett&#8217;s core investment skills are typical value investments that follow the example of value investment master Graham (please refer to my previous post &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/06\/23\/value-investing\/\" target=\"_blank\" rel=\"noreferrer noopener\">The past and present of value investing<\/a>&#8220;), that is, looking for undervalued companies from the stock market. Too worried about whether those companies are great growth engines. Munger urged Buffett to expand the application of Graham&#8217;s investment philosophy and expand the investment network from &#8220;cheap&#8221; stocks to &#8220;fairly priced&#8221; high-quality stocks, that is, to include well-managed and widely recognized companies in the investment portfolio. <\/p>\n\n\n\n<p>&nbsp;\u201c<em>Charlie<\/em>&nbsp;shoved me in the direction of not just buying bargains, as Ben&nbsp;<em>Graham<\/em>&nbsp;had taught me,\u201d&nbsp;Buffett&nbsp;told Forbes in 1996. \u201cIt took a powerful force to move me on from Graham\u2019s limiting views. It was the power of Charlie\u2019s mind.<strong>\u201d<\/strong><\/p>\n\n\n\n<p>Buffett&nbsp;himself once said that it was Charlie Munger who made him evolve from an&nbsp;orangutan to a human being, otherwise he would be much poorer.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sees_Candies\"><\/span>See&#8217;s Candies<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The person most profoundly influenced by Munger\u2019s investment philosophy is none other than Buffett.<\/p>\n\n\n\n<p>The most critical one was the merger and acquisition of See&#8217;s Candy. Buffett later accepted Munger&#8217;s advice to buy See&#8217;s Candy. The biggest change was that Buffett no longer insisted on using his teacher Graham&#8217;s &#8220;cigarette butt investment&#8221; method. Way:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Instead of simply using working capital, discounted cash flow (DCF) and private market valuations are used as a margin of safety when investing.<\/li>\n\n\n\n<li>Under the great influence of Munger, through the actual verification of the See&#8217;s Candy acquisition\u2500\u2500\u2500\u2500adding non-quantified, corporate future growth rate, corporate long-term outlook, market share, management team capabilities, moats and other invisible values, as an important consideration when investing.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Distinctive_personality\"><\/span>Distinctive personality<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Outspoken\"><\/span>Outspoken<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>However, Munger&#8217;s straightforward investment style, his belief in operating a company with integrity, and his straightforwardness have won him the trust and respect of ordinary American investors.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Disdain_for_Wall_Street\"><\/span>Disdain for Wall Street<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Munger and Buffett have always believed that so-called financial advisors, hedge fund managers and other investment managers are not worth the fees they charge, and call them &#8220;financial assistants&#8221;.<\/p>\n\n\n\n<p>In May 2023, Investment managers are nothing more than \u201cfortune tellers or astrologers who are dragging money out of their clients\u2019 accounts,\u201d he told the&nbsp;<a href=\"https:\/\/fortune.com\/2023\/04\/30\/charlie-munger-warns-trouble-banks-commercial-real-estate\/\" target=\"_blank\" rel=\"noopener\"><em>Financial Times<\/em><\/a>&nbsp;in a wide-ranging interview published Sunday, arguing there\u2019s currently a \u201cglut of investment managers that\u2019s bad for the country.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Against_cryptocurrencies\"><\/span>Against cryptocurrencies<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>He also used strong terms like \u201cdementia\u201d to describe the growing enthusiasm for cryptocurrencies.<\/p>\n\n\n\n<p>&#8220;I think the people who are professional traders that go into trading cryptocurrencies, it&#8217;s just disgusting,&#8221; he said. &#8220;It&#8217;s like somebody else is trading turds and you decide, \u2018I can&#8217;t be left out.\u2019&#8221; He has also criticized cryptocurrencies many times, calling &#8220;bitcoin is noxious poison&#8221;. <\/p>\n\n\n\n<p>\u201cThis is a very, very bad thing. The country did not need a currency that was good for kidnappers,\u201d Munger said. \u201cThere are people who think they\u2019ve got to be on every deal that\u2019s hot. I think that\u2019s totally crazy. They don\u2019t care whether it\u2019s child prostitution or bitcoin.\u201d<\/p>\n\n\n\n<p>Munger said that combination of fraud and delusion was to blame.<\/p>\n\n\n\n<p>\u201cIn my life, I try to avoid things that are stupid and evil and make me look bad\u2026and bitcoin does all three,\u201d&nbsp;<a href=\"https:\/\/fortune.com\/2022\/04\/30\/bitcoin-stupid-evil-berkshire-hathaway-vice-chair-munger-says-warren-buffett-cryptocurrency\/\" target=\"_blank\" rel=\"noopener\">he said<\/a>. \u201cIn the first place, it\u2019s stupid because it\u2019s still likely to go to zero. It\u2019s evil because it undermines the Federal Reserve System\u2026and third, it makes us look foolish compared to the Communist leader in China. He was smart enough to ban bitcoin in China.\u201d<\/p>\n\n\n\n<p>&#8220;sometimes I call it crypto crappo and sometimes I call it crypto shit.&#8221; Munger said at the Daily Journal&#8217;s 2023 virtual annual shareholder meeting. It\u2019s very dangerous and the governments were totally wrong to permit it. I\u2019m not proud of my country for allowing this crap \u2014 what I call the crypto shit. It\u2019s worthless, it\u2019s no good, it\u2019s crazy, it will do nothing but harm, and it\u2019s anti-social to allow it.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Popular_in_China\"><\/span>Popular in China<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Munger is very popular in China, which personally is not surprising to me. Because Menger\u2019s thoughts, philosophy of life, theories, and recommended actions are actually very close to Chinese Confucianism. Munger himself was surprised that the book he wrote was very popular in China, but not so well sold in the United States.<\/p>\n\n\n\n<p>It is also worth mentioning that for a long time, Munger has had a special love for China. He not only praised the Chinese people on various occasions for their intelligence, diligence, and ability to endure hardships; he also spared no effort to praise China for its achievements in more than 10 countries over the past thirty years. He is full of praise for the achievement of lifting 100 million people out of poverty, and agrees that China&#8217;s future development is still unlimited.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.rev.com\/blog\/transcripts\/warren-buffett-berkshire-hathaway-annual-meeting-transcript-2021\" target=\"_blank\" rel=\"noreferrer noopener\">At the Berkshire Hathaway Shareholders Meeting in 2021, when talking about the Chinese economy<\/a>, Munger said &#8220;I think that the Chinese government will allow businesses to flourish. It was one of the most remarkable things that ever happened in the history of the world when a bunch of committed Communists just looked at the prosperity of places like Singapore and said, \u201cThe hell with this. We\u2019re not going to stay here in poverty. <\/p>\n\n\n\n<p>We\u2019re going to copy what works.\u201d They changed communism. They just accepted Adam Smith and added it to their Communism. Now we have Communism with Chinese characteristics, which is China with a free market with a bunch of millionaires and so forth. They made that shift. They deserve a lot of credit. Warren and I are not quite as good at that, at changing our minds, in many cases.&#8221;<\/p>\n\n\n\n<p>In 2023,  <a href=\"https:\/\/www.globaltimes.cn\/page\/202311\/1302743.shtml\" target=\"_blank\" rel=\"noreferrer noopener\">in an interview with the Acquired podcast released<\/a>, Munger mentioned his high expectations for the Chinese economy. He said that the Chinese economy has better prospects over the next 20 years than almost any other big economy, and that the leading companies of China are stronger and better than practically any other leading companies anywhere &#8211; and they&#8217;re much cheaper. Therefore, he said he was &#8220;willing to have some China risk in the Munger portfolio.&#8221;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Companies_highly_connected_to_Munger\"><\/span>Companies highly connected to Munger<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Berkshire_Hathaway\"><\/span>Berkshire Hathaway<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Munger is Berkshire Hathaway&#8217;s sole vice chairman. Berkshire Hathaway is also one of the four major sources of his personal wealth.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Daily_Journal\"><\/span>Daily Journal<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Daily Journal (ticker: DJCO) is a listed company founded by Munger. For his recent speech, please see my previous post: &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/02\/17\/charlie-munger-2023-djco\/\">Charlie Munger speaks at 2023 Daily Journal Shareholders Meeting<\/a>&#8220;.<\/p>\n\n\n\n<p>According to the U.S. Securities and Exchange Commission (SEC) website: As of the end of September 2023, Alibaba (ticker: BABA), Bank of America (ticker: BAC), U.S. Bank (ticker: USB), Wells Fargo (ticker: WFC) is one of the top four holdings in the Daily Journal&#8217;s rankings.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Costco\"><\/span>Costco<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In my previous post, &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/27\/costco-moats-difference\/\" target=\"_blank\" rel=\"noreferrer noopener\">Costco moats, and the Differences from Other Competitors<\/a>&#8220;, I detailed: He has been a member of the board of directors since 1997. There are only three stocks in his personal portfolio, and Costco is one of them. The financial media really went to investigate whether this old man was consistent with his words and deeds from time to time, and found that <a href=\"https:\/\/finance.yahoo.com\/news\/charlie-munger-costco-will-be-an-absolute-titan-on-the-internet-184553141.html#:~:text=Munger%20has%20served%20as%20a,%2481%20million%20at%20the%20time.\" target=\"_blank\" rel=\"noreferrer noopener\">he would continue to buy small amounts and increase his bets on Costco stocks<\/a>. As of the end of 2020, he personally owned 186,000 shares of Costco stock.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Himalaya_Capital\"><\/span>Himalaya Capital<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Himalaya Capital Management was founded by Li Lu, a Chinese-American investor and hedge fund manager. Li Lu mainly adopts the value investment method advocated by Buffett and Munger. Li Lu himself has a lot of Munger&#8217;s true inheritance, and Munger also trusted him quite a lot and handed over part of his private property to Li Lu for management.<\/p>\n\n\n\n<p>For Himalaya Capital and Li Lu, please see my post of &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/09\/04\/li-lu-himalaya-capital\/\">Li Lu, Munger\u2019s disciple, and his Himalaya Capital<\/a>&#8220;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"BYD\"><\/span>BYD<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In 2003, Meng met Li Lu. Five years later, in 2008, Li Lu recommended BYD to Munger. According to industry legend, Munger and Buffett have been working together for more than 50 years and made a total of three recommendation calls to Buffett, the third of which was to invest in BYD.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Investment_style\"><\/span>Investment style<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stay_rational\"><\/span>Stay rational<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Munger noticed patterns of irrational behavior that led to repeated mistakes, so he set out to finds ways to understand psychology in order to avoid the mistakes himself:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>I was greatly helped in my quest by two turns of mind. First, I had long looked for insight by inversion in the intense manner counseled by the great algebraist, Jacobi: \u201cInvert, always invert.\u201d I sought good judgment mostly by collecting instances of bad judgment, then pondering ways to avoid such outcomes. <\/p>\n\n\n\n<p>Second, I became so avid a collector of instances of bad judgment that I paid no attention to boundaries between professional territories. After all, why should I search for some tiny, unimportant, hard-to-find new stupidity in my own field when some large, important, easy-to-find stupidity was just over the fence in the other fellow\u2019s professional territory? Besides, I could already see that real-world problems didn\u2019t neatly lie within territorial boundaries. They jumped right across.<\/p>\n<\/blockquote>\n\n\n\n<p>That&#8217;s how Berkshire has been largely successful for many years. Please see my previous post for this part: &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/10\/20\/thinking-outsourced\/\" target=\"_blank\" rel=\"noreferrer noopener\">Thinking cannot be outsourced<\/a>&#8220;.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Expand_your_knowledge\"><\/span>Expand your knowledge<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>For this part, please see my previous post: &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/20\/investment-knowledge\/\">Investment knowledge required is breadth, not depth as most people think<\/a>&#8221; In particular, Munger repeatedly emphasized &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/08\/10\/the-irreplaceable-and-necessity-of-reading-for-investors\/\">The Irreplaceability and Necessity of Reading for Investors<\/a>&#8220;.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Trait_is_more_important_than_IQ\"><\/span>Trait is more important than IQ<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>For this part, please see my previous post: &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/03\/14\/too-high-iq-is-not-useful-in-investment-but-will-hinder\/\" target=\"_blank\" rel=\"noreferrer noopener\">Too high IQ is not useful in investment, but will hinder<\/a>&#8220;.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concentrate_investment\"><\/span>Concentrate investment<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Most of his personal wealth comes from four investments: Berkshire Hathaway, Costco, a fund managed by Himalaya Capital Management, and an investment in Afton Properties; he only has three in his personal portfolio stock.<\/p>\n\n\n\n<p>The Daily Journal of Listed Companies, where he serves as chairman, has only four main stocks in its investment portfolio: Alibaba, Bank of America, U.S. Bank, and Wells Fargo.<\/p>\n\n\n\n<p>These two examples prove that he is consistent in his advocacy of concentrated investment and has consistently done so himself.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Circle_of_competence_and_strengths\"><\/span>Circle of competence and strengths<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>\u201cPlaying poker in the army and as a young lawyer honed my business skills,\u201d Munger said. \u201c<a href=\"https:\/\/www.biznews.com\/global-investing\/2023\/11\/29\/ft-charlie-munger-1924-2023#:~:text=%E2%80%9CPlaying%20poker%20in%20the%20army,get%20a%20big%20edge%20often.\" target=\"_blank\" rel=\"noreferrer noopener\">What you have to learn is to fold early when the odds are against you, or if you have a big edge, back it heavily because you don&#8217;t get a big edge often.<\/a>&#8220;<\/p>\n\n\n\n<p>For this part, please see my previous post: &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/08\/31\/circle-of-competence\/\">The importance of circle of competence<\/a>&#8220;.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Invest_in_outstanding_companies_at_reasonable_prices\"><\/span>Invest in outstanding companies at reasonable prices<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The most typical example is See&#8217;s Candies mentioned earlier in this post.<\/p>\n\n\n\n<p>\u201cIt\u2019s far better to buy a wonderful company at a fair price than a fair company at a wonderful price,\u201d he said. \u201cCharlie understood this early: I was a slow learner. But now, when buying companies or common stocks, we look for first-class businesses accompanied by first-class managements.\u201d<\/p>\n\n\n\n<p>Change In other words, if it were not for being inspired by Munger, Buffett might still not change his &#8220;picking up cigarette butts&#8221; investment style, hoping to pick up low-priced stocks to &#8220;suck the last puff.&#8221;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Against_EBITDA\"><\/span>Against EBITDA<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Companies that use earnings before interest, taxes, depreciation and amortization (EBITDA) to improve their accounts\u2500Munger believes that using EBITDA to measure profits is simply &#8220;nonsense.&#8221; Charlie Munger asked investors to be careful of &#8220;nonsense jargon&#8221; in the investment world. <\/p>\n\n\n\n<p>In the financial world, be careful of &#8220;nonsense.&#8221; He once joked, &#8220;Whenever you see adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) , you can replace this word with &#8220;profit from bullshit&#8221;. In other words, as an investor, you should pay attention to the management of the company and beware of their nonsense to deceive investors.<\/p>\n\n\n\n<p>For this part, please see my previous post: &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/07\/04\/ebitda-financial-forecasts\/\">Why would Buffett oppose to EBITDA and financial forecasts?<\/a>&#8220;.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Buffett_and_Munger\"><\/span>Buffett and Munger<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Official_response_from_Berkshire_Hathaway\"><\/span>Official response from Berkshire Hathaway<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Berkshire announced that Munger passed away peacefully in a California hospital on the morning of November 28, local time. Berkshire CEO Buffett said in a statement announcing Munger&#8217;s passing: &#8220;<strong><em>Without Charlie&#8217;s inspiration, wisdom and involvement, Berkshire would not be where it is today<\/em><\/strong>.&#8221;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Buffett_pays_tribute_to_Munger\"><\/span>Buffett pays tribute to Munger<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>At the beginning of Berkshire Hathaway&#8217;s 2024 shareholder letter, Buffett deliberately wrote a page of text at the beginning titled: &#8220;<em><strong>Charlie Munger \u2013 The Architect of Berkshire Hathaway<\/strong><\/em>&#8220;. The complete original text is as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/news.cnyes.com\/news\/id\/5462775\" target=\"_blank\" rel=\"noreferrer noopener\">Buffett&#8217;s tribute to Munger (Traditional Chinese version)<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/finance.sina.com.cn\/money\/forex\/forexinfo\/2024-02-24\/doc-inakeaiy9433296.shtml\" target=\"_blank\" rel=\"noreferrer noopener\">Buffett&#8217;s 2024 Letter to Berkshire Hathaway Shareholders (Simplified Chinese version, original English text attached)<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/berkshirehathaway.com\/letters\/2023ltr.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Buffett&#8217;s tribute to Munger (English version)<\/a><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_contribution_to_Berkshire_Hathaway\"><\/span>Key contribution to Berkshire Hathaway<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Buffett credits Munger with teaching him Berkshire&#8217;s key investment philosophy, &#8220;investing in good companies at reasonable prices.&#8221;<\/p>\n\n\n\n<p>The Wall Street Journal reported on November 28, 2023, that Buffett stated in his annual letter to investors in 2000 that Munger was more thoughtful about business economics and investment matters than anyone he knew. I have been traveling with him for decades and have benefited a lot from listening to him.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Buffetts_thoughts_on_Munger\"><\/span>Buffett\u2019s thoughts on Munger<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Wall Street Journal compiled Buffett\u2019s thoughts on Munger as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Berkshire Hathaway&#8217;s annual shareholder letter in 1982: &#8220;Charlie Munger, my partner in management, will continue to operate from Los Angeles whether or not the Blue Chip merger occurs. Charlie and I are interchangeable in business decisions. Distance impedes us not at all: we\u2019ve always found a telephone call to be more productive than a half-day committee meeting.&#8221;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>1985 Berkshire Hathaway Annual Shareholder Letter: &#8220;Charlie Munger, has always emphasized the study of mistakes rather than successes, both in business and other aspects of life. He does so in the spirit of the man who said: \u201cAll I want to know is where I\u2019m going to die so I\u2019ll never go there.\u201d You\u2019ll immediately see why we make a good team: Charlie likes to study errors and I have generated ample material for him, particularly in our textile and insurance businesses.&#8221;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>1989 Berkshire Hathaway Annual Letter to Shareholders: \u201cIt&#8217;s far better to buy a wonderful company at a fair price than a fair company at a wonderful price. Charlie understood this early; I was a slow learner.\u201d<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>1995 Berkshire Annual Shareholder Letter: &#8220;At Berkshire, we believe in Charlie&#8217;s dictum &#8211; &#8220;Just tell me the bad news; the good news will take care of itself&#8221; &#8211; and that is the behavior we expect of our managers when they are reporting to us.&#8221;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>2011 Berkshire Hathaway Annual Shareholder Letter: &#8220;I try to look out ten or twenty years when making an acquisition, but sometimes my eyesight has been poor. Charlie\u2019s has been better; he voted no more than \u201cpresent\u201d on several of my errant purchases.\u201d<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>2014 Berkshire Hathaway Annual Shareholder Letter: &#8220;Charlie has a wide-ranging brilliance, a prodigious memory, and some firm opinions. I\u2019m not exactly wishy-washy myself, and we sometimes don\u2019t agree. In 56 years, however, we\u2019ve never had an argument. When we differ, Charlie usually ends the conversation by saying: \u201cWarren, think it over and you\u2019ll agree with me because you\u2019re smart and I\u2019m right.&#8221;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>2022 Berkshire Hathaway Annual Shareholder Letter: &#8220;Charlie and I think pretty much alike. But what it takes me a page to explain, he sums up in a sentence. His version, moreover, is always more clearly reasoned and also more artfully \u2013 some might add bluntly \u2013 stated.&#8221;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Books_recommended_by_Munger\"><\/span>Books recommended by Munger<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Poor_Charlies_Almanac\"><\/span>Poor Charlie&#8217;s Almanac<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>&#8220;Poor Charlie&#8217;s Almanack&#8221; is a must-read book if you want to understand Menger&#8217;s life &#8220;thoughts&#8221;. The focus is not on investment, but on Menger&#8217;s philosophy of life. The content is very rich. I would like to remind everyone that this book is actually very difficult to read and is not suitable for everyone to read. However, if you are willing, you can still understand the contents of the book after reading it several times.<\/p>\n\n\n\n<p>I also wrote a detailed introduction to this book: &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/05\/21\/poor-charlies-almanack\/\" target=\"_blank\" rel=\"noreferrer noopener\">Munger&#8217;s most important work &#8220;Poor Charlie&#8217;s Almanack&#8221;<\/a>&#8220;.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Damn_Right\"><\/span>Damn Right<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>&#8220;Damn Right&#8221; was written before 2000 by the famous American financial author Janet Lowe. Although this book has been published for many years, it is a biography of Munger written by Janet Lowe. It is plain in content and provides a wonderful description of Munger&#8217;s life, thoughts, behaviors, conduct, investments, and life. It is worth the time of readers who want to understand Munger.<\/p>\n\n\n\n<p>The book records Munger saying: &#8220;Like Warren, I had a considerable passion to get rich, not because I wanted Ferrari&#8217;s &#8211; I wanted the independence. I desperately wanted it.&#8221;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Charlie_Munger_The_Complete_Investor\"><\/span>Charlie Munger: The Complete Investor<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>&#8220;<a href=\"https:\/\/www.amazon.com\/Charlie-Munger-Complete-Investor-Publishing\/dp\/023117098X\" target=\"_blank\" rel=\"noreferrer noopener\">Charlie Munger: The Complete Investor<\/a>&#8221; is a book written by Tren Griffin. It mainly describes how Monger applied his investment philosophy to stock market investment. <\/p>\n\n\n\n<p>The content is compiled from his interviews, speeches, writings and letters to shareholders, plus comments from money managers, other value investors and business case researchers.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Warren_Buffett_Portfolio\"><\/span>The Warren Buffett Portfolio<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>&#8220;The Warren Buffett Portfolio&#8221; is a book recommended by Munger. There is a Chinese translation in Taiwan, but it is not a very mainstream and famous book. I personally have read it many times. The text is very simple, the book is very thin, and the content is loud and clear. It is an excellent introductory book for those who want to understand the investment principles of Buffett and Menger and how they construct long-term investment portfolios.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_TAO_of_Charlie_Munger\"><\/span>The TAO of Charlie Munger<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>&#8220;The TAO of Charlie Munger&#8221; is an edited volume that specifically collects Munger&#8217;s famous speeches, wise sayings, aphorisms, and important opinions. The author spent a lot of time collecting, excerpting, and organizing them. This is a concise book of Munger&#8217;s thoughts suitable for readers and investors who want to understand Munger&#8217;s speeches and wise sayings.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Poor_Richards_Almanack\"><\/span>Poor Richard&#8217;s Almanack<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Franklin published his own almanac under the name Poor Richard, Poor Richar&#8217;s Almanack in 1733, and printed humorous, inspiring and inspiring wisdom on the blank pages, hoping that the public would learn from it. Cultivate various virtues in a relaxed way and create wealth through diligence and thrift.<\/p>\n\n\n\n<p>Franklin is a figure that Munger admires very much. He himself also mentioned that the title of his book Poor Charlie&#8217;s Almanac was inspired by Franklin.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Munger_recommends_more_famous_and_classic_books\"><\/span>Munger recommends more famous and classic books<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/17\/outsiders\/\" target=\"_blank\" rel=\"noreferrer noopener\">Outsiders, one of the greatest investment books for management team<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;The Intelligent Investor&#8221;, author: Benjamin Graham<\/li>\n\n\n\n<li>&#8220;Security Analysis&#8221;, author: Benjamin. Graham<\/li>\n\n\n\n<li>&#8220;Common Stocks and Uncommon Profits and Other Writings&#8221;, author: Philip  Fisher<\/li>\n\n\n\n<li>&#8220;Barbarians at the Gate&#8221;, author: Brian Berry<\/li>\n\n\n\n<li>&#8220;Den of Thieves&#8221;, author: James. B. Stewart<\/li>\n\n\n\n<li>&#8220;Influence, New and Expanded&#8221;, author: Robert Sirdini<\/li>\n\n\n\n<li>&#8220;Only the Paranoid Survive&#8221;, author: Andy Grove<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"132\" height=\"132\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2023\/12\/Charlie_Munger-1600x1200-1.jpg\" alt=\"Charlie Munger\" class=\"wp-image-23751\"\/><figcaption class=\"wp-element-caption\">credit:wiki<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Relative_articles\"><\/span>Relative articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/06\/10\/munger-archives\/\">Munger Archives, Shareholder Letters<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/07\/04\/buffett-and-munger-recommended-books-in-shareholder-meeting\/\">Buffett and Munger recommended books in shareholder meeting<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/06\/22\/paths-to-wealth-through-common-stocks\/\">Philip Fisher&#8217;s book &#8211; Paths to Wealth Through Common Stocks&#8221; <\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/04\/24\/buffett-and-munger-unscripted\/\">&#8220;Buffett and Munger Unscripted &#8211; Selected transcript from Berkshire Hathaway shareholder meeting Q&amp;A &#8220;<\/a><\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/05\/21\/poor-charlies-almanack\/\" target=\"_blank\" rel=\"noreferrer noopener\">Munger&#8217;s most important work &#8220;Poor Charlie&#8217;s Almanack&#8221;<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/03\/13\/damn-right-charlie-mungers\/\">&#8220;Damn Right&#8221;, Charlie Munger&#8217;s biography book<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/07\/22\/munger-wescos-24-years\/\">The Wisdom of Charlie Munger-Key points from Munger Wesco&#8217;s 24 years of shareholder meetings<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/03\/06\/munger-daily-journals\/\">The Charlie Munger Way-Key points from Munger Daily Journal\u2019s 10 years of shareholder meetings<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/\">Charlie Munger, a great investor worth remembering<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/09\/04\/li-lu-himalaya-capital\/\">Li Lu, Munger\u2019s disciple, and his Himalaya Capital<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/02\/17\/charlie-munger-2023-djco\/\">Charlie Munger speaks at 2023 Daily Journal Shareholders Meeting<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/27\/benjamin-graham-on-value-investing-grahams-bio-book\/\">&#8220;Benjamin Graham on Value Investing&#8221;, Graham&#8217;s bio book<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/02\/bitcoin-etf-spot\/\" target=\"_blank\" rel=\"noreferrer noopener\">Bitcoin ETF spot trading approval has far-reaching impact<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/12\/enlightenment-of-bitcoin\/\" target=\"_blank\" rel=\"noreferrer noopener\">Enlightenment of Bitcoin reaching new heights<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/28\/coinbase-and-binance\/\" target=\"_blank\" rel=\"noreferrer noopener\">How do Coinbase and Binance make money? Advantages comparison<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/04\/07\/buffett-deserves-study\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why Buffett deserves further study?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/06\/23\/value-investing\/\" target=\"_blank\" rel=\"noreferrer noopener\">The past and present of value investing<\/a>&#8220;<\/li>\n\n\n\n<li><a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/07\/cigar-butt-investment\/\" target=\"_blank\" rel=\"noreferrer noopener\">&#8220;Problems with Cigar Butt Investment<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/08\/31\/circle-of-competence\/\">The importance of circle of competence<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/10\/20\/thinking-outsourced\/\" target=\"_blank\" rel=\"noreferrer noopener\">Thinking cannot be outsourced<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/20\/investment-knowledge\/\">Investment knowledge required is breadth, not depth as most people think<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/03\/14\/too-high-iq-is-not-useful-in-investment-but-will-hinder\/\" target=\"_blank\" rel=\"noreferrer noopener\">Too high IQ is not useful in investment, but will hinder<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/27\/costco-moats-difference\/\" target=\"_blank\" rel=\"noreferrer noopener\">Costco moats, and the Differences from Other Competitors<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/07\/04\/ebitda-financial-forecasts\/\">Why would Buffett oppose to EBITDA and financial forecasts?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/06\/17\/wells-fargo\/\">Wells Fargo, a major holding once praised by Buffett and Munger<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/08\/10\/the-irreplaceable-and-necessity-of-reading-for-investors\/\">The Irreplaceability and Necessity of Reading for Investors<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/02\/22\/berkshire-shareholder-letter\/\">Buffett&#8217;s 2025 Berkshire Shareholder Letter<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/02\/25\/2024-shareholder-letter\/\" target=\"_blank\" rel=\"noreferrer noopener\">Buffett&#8217;s 2024 Annual Shareholder Letter<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/02\/26\/2023-shareholder-letter\/\" target=\"_blank\" rel=\"noreferrer noopener\">Buffett&#8217;s 2023 Annual Shareholder Letter<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/05\/05\/2024-berkshire-shareholders-meeting-transcript-and-video\/\" target=\"_blank\" rel=\"noreferrer noopener\">2024 Berkshire shareholders meeting transcript and video<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/05\/09\/shareholders-meeting\/\" target=\"_blank\" rel=\"noreferrer noopener\">2023 Berkshire shareholders meeting transcript and video<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/07\/26\/buffetts-first-tv-interview\/\">Buffett&#8217;s first TV interview<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/04\/17\/buffett-squawk-box\/\">Full transcript of Buffett&#8217;s interview with CNBC&#8217;s Squawk Box<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/17\/outsiders\/\" target=\"_blank\" rel=\"noreferrer noopener\">Outsiders, one of the greatest investment books for management team<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/12\/17\/dear-shareholder\/\">Dear Shareholder<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Buffett said: &#8220;Because Munger&#8230; made me go from an orangutan to a human being, if I didn&#8217;t know him, I would be much poorer than I am now!&#8221; Buffett said in a statement on Charlie Munger&#8217;s death: &#8220;Without Charlie&#8217;s inspiration, wisdom and Without participation, Berkshire would not be where it is today.&#8221;<\/p>\n","protected":false},"author":1,"featured_media":23751,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15,50,221,392,87,86,172,420,739,543,10,37,32,11],"tags":[],"class_list":["post-23750","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-charlie-munger","category-benjamin-graham","category-board-of-directors","category-circle-of-competence","category-cryptocurrency","category-digital-asset","category-ebitda","category-founders","category-geopolitics","category-investing-advisory","category-investing-guru","category-philip-fisher","category-value-investing","category-buffett"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/23750","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=23750"}],"version-history":[{"count":118,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/23750\/revisions"}],"predecessor-version":[{"id":42917,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/23750\/revisions\/42917"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/23751"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=23750"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=23750"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=23750"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}