Poor Charlie's Almanack

The Wit and Wisdom of Charles T. Munger

by Peter D. Kaufman

“Poor Charlie’s Almanack” (2005) explores the life and investment principles of Charles Munger, one of the most private billionaires. As the vice-chairman of Berkshire Hathaway, Munger has played a crucial role in making investment choices that have generated billions in profits. However, his interests extend beyond financial gain. This summary covers his ethical investment philosophy, his belief in the importance of paying taxes, and his dedication to philanthropy, including donations to educational institutions and causes like Planned Parenthood.

About the Author

Charles Munger graduated from Harvard Law School and built a successful law practice. A chance encounter with Warren Buffet steered him towards investing. Today, he serves as the billionaire vice-chairman of Berkshire Hathaway. “Poor Charlie’s Almanack” is the first collection of Munger’s investment wisdom, drawn from Berkshire Hathaway board meetings and his personal speeches.

Learn to Invest with Integrity and Insight

You might not be familiar with Charles T. Munger. In an era dominated by social media and ostentatious displays of wealth, this is quite notable. Munger is among the world’s wealthiest individuals, yet you won’t see him flaunting his riches on a yacht in the Caribbean. Instead, he’s more likely to be at home in the same house he’s lived in for years, engrossed in a book.

Munger is celebrated for his modest lifestyle and his principled investment approach. At a time when skepticism about Wall Street runs high, Munger’s commitment to integrity—insisting on accurate financial reporting and avoiding tax havens—is a breath of fresh air. For Munger, these principles aren’t just ethical; they also make good business sense.

In this summary, you’ll discover:

• Why investors should be trained like pilots

• How Munger foresaw the 2008 Global Financial Crisis

• The importance of admitting your mistakes

Charlie Munger: A Youth Built on Hard Work and Giving Back

Charlie Munger's upbringing fostered a strong work ethic and a commitment to philanthropy.

As a teenager, Charlie Munger worked at the grocery store owned by Warren Buffet’s grandfather, Ernest. This was no ordinary summer job—Munger endured 12-hour shifts without breaks, earning just two dollars. The grueling experience taught him a work ethic that propelled him from a grocery stacker to a billionaire.

Munger's children recall their father’s long work hours, often leaving at dawn and returning just for dinner, only to resume working afterwards. Even when present, Munger’s mind was frequently occupied with work. His remarkable focus allowed him to tune out distractions, an impressive feat with eight children vying for his attention.

Munger was keen to instill this work ethic in his children. His son, William Borthwick, recalls Munger's lesson on thoroughness. One of Borthwick’s chores involved taking a boat and car trip to fetch their housekeeper and buy a newspaper. On a stormy day, he braved the elements but forgot the newspaper. Munger promptly sent him back out into the storm to complete the task. Harsh as it seemed, the lesson made Borthwick a more effective worker. Despite Munger’s strictness, his children cherish their childhood memories and appreciate his unwavering support for their education and careers.

Munger’s generosity extends beyond his family. Having grown up during the Great Depression, he witnessed the harsh realities of poverty and has always sought to give back. Together with his wife, Nancy, he has made significant donations to universities and hospitals and steadfastly supported causes dear to him, such as Planned Parenthood. For Munger, giving back is as crucial as hard work.