Howard Buffett explains how his childhood experiences influenced him to become a philanthropist.
In his first annual letter to shareholders after Munger's death, Berkshire Hathaway CEO Warren Buffett called former vice chairman Charlie Munger the company's “architect.” , recalled as a formidable partner.
“Charlie is the 'architect' of today's Berkshire, and I served as the 'general contractor' who carried out the day-to-day execution of his vision,” Buffet said in a letter to shareholders.
Buffett said his relationship with his longtime business partner is “that of an older brother and a loving father.”
“Charlie never tried to take credit for his role as creator, instead letting me bow down and take the credit. In a way, Charlie's relationship with me is that of an older brother, a loving one. He was also a devoted father,” Buffett wrote. “Even when he knew he was right, he gave me control and when I messed up, he never, ever reminded me of my mistakes.”
Charlie Munger, Warren Buffett's friend and business partner, dies at 99
Berkshire Hathaway CEO Warren Buffett (left) remembered Charlie Munger as the “architect” of the multibillion-dollar company. (Johannes Eisel/AFP via Getty Images/Getty Images)
“In the physical world, great buildings are associated with their architects, but the people who poured the concrete and installed the windows are quickly forgotten. Berkshire has become a great company. Although he was in charge of the construction crew, Charlie should forever be recognized as an architect,'' he added.
In his letter to shareholders, Buffett urged investors to largely ignore the bottom line numbers and instead focus on Berkshire's operating income, which excludes investments.
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“The key difference between the mandated numbers and Berkshire's preferred numbers is that they exclude unrealized capital gains and losses, which can sometimes exceed $5 billion per day,” Buffett wrote. “Ironically, until 2018 when ‘improvement’ was mandated, our preferences were pretty much the rule. Galileo's experience several centuries ago should have taught him not to mess with orders from above. But sometimes we can be stubborn in the Berkshires.” ”
File photo: Berkshire Hathaway shareholders walk in front of a video screen during the company's annual meeting in Omaha, May 4, 2013. (Reuters/Rick Wilking/File Photo/Reuters Photo)
Buffett also tempered expectations for Berkshire's stock, saying the company's massive size “doesn't suggest spectacular performance.”
“There are only a handful of companies left in this country that can truly move the needle at Berkshire, and they continue to be singled out endlessly by us and others,” Buffett wrote. . “Some things can be evaluated, and some things can't be evaluated.”
The 93-year-old billionaire also assured investors that his successor, Vice Chairman Greg Abel, is “ready in every way to be Berkshire's CEO tomorrow.”
Berkshire Hathaway Vice Chairman Charlie Munger speaks at the Daily Journal's shareholder meeting in Los Angeles. (Patrick T. Fallon/Bloomberg via Getty Images/Getty Images)
Buffett paid his heartfelt condolences after Munger's business partner and friend passed away in November at the age of 99.
“We could not have built Berkshire Hathaway to where it is today without Charlie's inspiration, wisdom and participation,” Buffett said in a statement upon his passing.
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In addition to being Berkshire's vice chairman, Mr. Munger was also a real estate attorney, chairman and publisher of the Daily Journal, a member of the Costco board of directors, a philanthropist, and an architect.
Fox News Digital's Stepheny Price contributed to this report.
