By
Godfrey Benjamin
April 26th, 2024
Berkshire Hathaway acknowledged the notable contribution and announced that Charlie’s family would handle all the affairs pursuant to his instructions.
Titan investor and billionaire Charlie Munger has died at the age of 99 according to an official report from Berkshire Hathaway Inc Cl B (NYSE: BRK.B) on Tuesday. The famed businessman, who was the vice chairman of the $797 billion valued company, passed away Tuesday morning at a California hospital. As a major shareholder of Berkshire Hathaway, Charlie’s death means a new era for the company although much attention will be focused on Chief Executive Officer Warren Buffett. Moreover, the dual has grown the company to a respectable investment vehicle touching almost every industry.
“Berkshire Hathaway could not have been built to its present status without Charlie’s inspiration, wisdom, and participation,” Buffett noted in the announcement.
Charlie died with a fortune estimated at $2.3 billion but his decision affected most companies including Apple Inc (NASDAQ: AAPL), among many others. In his farewell note, Apple CEO Tim Cook described Charlie as a keen observer of the world around him for helping build an American institution. Nonetheless, Buffet, who is estimated to be worth over $100 billion, is expected to continue with the investment legacy at Berkshire Hathaway, despite losing his right-hand man.
Apart from his role at Berkshire Hathaway where he worked since 1975, Charlie operated some projects in real estate as he believed the industry would remain green. Moreover, Charlie believed in the principle of fishing where the fish are, in order to remain profitable as a business.
What Next for Charlie Munger’s Legacy
The global economy is fast changing through digital technology and the veteran investors running large fund managers are being forced to adopt or risk being phased out. However, Charlie remained vocal against Bitcoin (BTC), as a new form of global reserve currency that is fast eating away gold’s market value. The legendary investor severally reiterated that Bitcoin among other digital assets is used to enable illegal activities, despite the high demand by institutional investors through spot ETF applications.
As a result, Charlie’s fortune is likely to continue in accordance with Berkshire Hathaway’s investment strategy. According to the company’s third-quarter earnings report, the majority of its profits came from insurance, railroads, utilities, and energy, among others. Worth noting that BRK stock traded around $360 on Wednesday, up approximately 16 percent year-to-date.
“As for the future, every activist and investment banker will argue that in a world without Warren and Charlie Munger, Berkshire’s unorthodox structure shouldn’t persist. I think Berkshire is worth defending. Warren has assembled a collection of long-lived assets that will produce cash flow for decades to come,” Chris Davis, a Berkshire board member who heads investment firm Davis Advisors, noted.