Charlie Munger's Investment Wisdom and Missed Opportunities in Tech Giants

Background of an Investment Giant

Regarded as a sage in the investment world, Charlie Munger, the vice chairman of Berkshire Hathaway Inc BRK-A, made a notable impact with his approach to investment decisions—an approach deeply influenced by the acquisition of See's Candies in 1972. This move demonstrated to Munger the profound potential of buying into companies with strong reputations and loyal customer bases, which would yield compounded returns over time. Berkshire Hathaway, a conglomerate with a portfolio including major stakes in companies like Apple Inc. AAPL, has been known for its discerning, value-oriented investment philosophy.

Munger's Views on Tech Icons

Despite his admiration for technology pioneers like Jeff Bezos, founder of Amazon.com Inc. AMZN, and Elon Musk, CEO of Tesla, Inc. TSLA, Munger passed on early investment opportunities in these now colossal entities. Both AMZN and TSLA have become prominent players in the tech and automotive industries, with Amazon commanding a significant presence in e-commerce, digital streaming, and cloud computing, while Tesla leads in electric vehicles and clean energy. Nevertheless, Munger's investment strategy, shaped by principles rather than immediate opportunity, meant allowing some ideas to fade, focusing instead on long-term value creation. He believed in the disciplined assessment of companies' intrinsic values, competitive edges, and management quality over the allure of rapid technological advancement.

The Paramount Lesson from See's Candies

The purchase of See's Candies by Berkshire Hathaway was more than just an addition to the company's portfolio; it was a defining moment for Munger's investment strategy. See's Candies not only proven to be a resilient and profitable business but also ingrained in Munger the significance of investing in companies with enduring qualities. Such lessons have resonated throughout Munger's career, guiding investment choices across various market sectors, including tech, where Berkshire Hathaway holds significant shares in AAPL, enhancing the conglomerate's reach in consumer electronics and digital services.

Berkshire, Munger, Investment