Charles Thomas Munger was an American businessman, investor, and philanthropist. He was vice chairman of Berkshire Hathaway, the conglomerate controlled by Warren Buffett; Buffett described Munger as his closest partner and right-hand man.
How did Charlie Munger make his money?
In 1961, an old acquaintance of Munger’s, Otis Booth, invited him to partner with him in a real estate development deal, which was completed in 1967 and Munger made a 400% profit on the sale of the development. Munger stayed in the business for a few more years until he made his first million dollars.
Prior to his death, Charlie Munger was raking in $70,000 a year from a $1,000 investment he made six decades prior — and likely collected over $1 million in total from the lucrative wager.
Warren Buffett’s business partner disclosed the initial cost of his oil royalties, and what they yield today, during Berkshire Hathaway’s 2023 shareholder meeting. Munger placed his oil bet in 1962, after meeting a businessman named Al Marshall during a husband-and-wife golf tournament. At the third hole, Marshall outlined his plan to bid in a local oil-royalty auction. Munger responded, in characteristically blunt fashion, “You’re doing it all wrong.”