Like Tree2Likes
  • 2 Post By AsianXpat0

Munger vs Buffet

Closed Thread
  1. #1

    Munger vs Buffet

    Can't complain over $2.4bn - but Buffett's net worth is estimated at $115bn.

    Surprised to see this difference - believe Buffett had a better starting point, but is it all due to compounding?


    Munger said he had made most of his money from just four investments: Berkshire, retailer Costco, his investment in a fund managed by Li Lu’s Himalaya Capital and Afton Properties, a real estate venture that owns apartment buildings in California and New Jersey. Forbes estimates his wealth at $2.4bn.
    https://www.ft.com/content/da9f8230-...a-f1507936d01b

  2. #2

    Join Date
    Sep 2019
    Posts
    4,895

    Buffetts owned 36% of Berkshire in 1971. Post-merger with Munger’s interests (Blue Chip Stamps, Diversified Retailing), it’s easy to believe Munger still only managed a fraction of that exposure. Sanity check is Munger is said to have made 1.4m from real estate projects in late 60s while Buffett was already a millionaire from 1960 or before, and is supposed to have been worth 25m in the early 70s. Versus Munger dissolving his partnership in the early 70s when the market wasn’t so hot.

    Munger is also said to have a large family, I imagine most people aren’t as frugal as Warren, Munger has given away hundreds of millions, and also said he can’t sign the giving pledge as he’s already given more than half to his children.

    So yes, very believable gulf for anyone not committed to compounding.

    Elefant&Castle and hullexile like this.

  3. #3

    Join Date
    Dec 2019
    Posts
    919

    Love Munger’s savageness during interviews, at the ripe age of 99.