November 30, 2023
Farewell to Charlie Munger, the “Abominable No-Man”
The tributes are pouring in for Charlie Munger, who passed away earlier this week at age 99. Warren Buffett nicknamed Munger the “abominable no-man” due to his willingness to disagree with Buffett’s ideas. He was also notably committed to maintaining Berkshire Hathaway’s corporate culture. This MarketWatch column from Mayer Brown’s Larry Cunningham discusses Munger’s impact in that regard, and the succession planning that has gone into filling that gap:
People have long pondered the fate of Berkshire without Buffett, who is 93. Now we face an equally difficult question of what Berkshire will be like without Munger — or perhaps what Buffett will be like without his alter ego, the person uniquely able to identify his blind spots.
After all, these longtime business partners complemented each other in a nearly ideal way: Buffett tended to lean in while Munger tended to lean out. Munger was Buffett’s essential no-man because Buffett runs amiable and optimistic while Munger embodied a curmudgeonly cynicism.
Yet the two obviously have far more traits in common — such as being learned, loyal, patient, rational, trustworthy and long-term focused. The good news for Berkshire is that the two built a culture on these values that will sustain itself: the result is a deep managerial bench at Berkshire that offers reassuring answers about Berkshire’s future beyond Munger as well as beyond Buffett.
Multiple individuals will together assume various parts of the roles those two traditionally played. Buffett has been board chairman, chief executive officer, and chief investment officer, roles that Buffett has said will be filled by his son Howard as chairman, Greg Abel as CEO and both Todd Combs and Ted Weschler as co-chief investment officers.
Munger’s role as Berkshire’s No. 2, with the official title of vice chairman, has been partner to the CEO while saying no as needed. Just as Buffett’s role will be split among his successors, so will Munger’s. The duty of sustaining the culture — saying no to threats to its rational, acquisitive, decentralized, autonomous, trust-based strengths — will fall to all of their successors.
– Liz Dunshee