Jonathan Stempel
(Reuters) – Warren Buffett left no doubt: he misses Charlie Munger, as well as Berkshire Hathaway (NYSE:) shareholders.
Buffett on Saturday dedicated a special section of his annual letter to shareholders to Munger, who died in November at age 99.
Buffett, 93, has credited his longtime business partner as a key factor behind what has become his $900 billion-plus Omaha, Nebraska-based conglomerate.
“Charlie was the ‘architect’ of what is now Berkshire, and I acted as the ‘general contractor’, carrying out the day-to-day implementation of his vision,” Buffett wrote.
Jim Shanahan, an Edward Jones analyst who covers Berkshire, called it a “profound compliment” from perhaps the most respected investor in the world.
“Buffett credited Berkshire’s success and his personal success with Charlie Munger,” he said. “Without his wisdom and leadership, Buffett would not be as successful as he is today.”
Munger’s death deprived Buffett of his closest confidant for more than 60 years, the last 45 of which he served as Berkshire’s vice chairman.
They grew up at the same time in Omaha, although Buffett did not meet Munger until 1959.
Under their leadership, Berkshire became the owner of dozens of companies, such as Geico Insurance and BNSF Railway, as well as a holder of Apple (NASDAQ:) shares worth more than $350 billion.
Munger was known for his common sense, witty, and sometimes harsh remarks.
“Envy is a really stupid sin,” he said in 2003, “because it’s the only sin you can never have fun with.”
But he also became known as the man who changed the way Buffett thought about investing.
Buffett credited Munger for persuading him to buy “great companies at fair prices, not fair companies at wonderful prices” – the latter of which Buffett called “cigarette butts” because their businesses could still contain clouds of smoke.
Calling him the “Berkshire Architect” alluded to Munger’s passion for architecture, including building design.
Buffett also recalled Munger’s relative modesty, saying that Munger doesn’t mind allowing him to be “worshipped and praised” while serving more as a big brother or loving father.
One of the places Munger spoke on stage was at Berkshire’s annual meeting, where he and Buffett sat in front of tens of thousands of shareholders (and millions more online), answering shareholder questions and often finishing each other’s thoughts.
Munger’s death means Buffett will likely share the stage at the annual meeting on May 4 this year only with Vice Chairman Greg Abel, who will eventually become CEO, and Vice Chairman Ajit Jain.
James Armstrong, who heads the Henry H. Armstrong Company in Pittsburgh and has owned Berkshire shares for more than 35 years, said Buffett’s letter was a fitting epitaph for Munger and what he meant to Berkshire.
“Charlie’s influence was enormous,” he said. “The public may not have realized it, but that’s the way it is now.”