When the Oracle Gets It Wrong

Warren Buffett has made a career out of being right about things. But at Berkshire Hathaway's (BRK.B) 2014 annual shareholder meeting, he told a story that proved even he can misdiagnose a situation pretty spectacularly.

Buffett was concerned. His longtime business partner Charlie Munger was in his 90s, and Buffett suspected he might be losing his hearing. So he did what any worried friend would do: He asked a doctor for advice on how to broach the delicate subject.

The physician suggested a straightforward test. Speak to Munger from across the room. If no response, move halfway closer and try again. Still nothing? Walk right up to his ear and ask once more. That should reveal whether there's actually a hearing problem.

Buffett followed the instructions precisely. From across the room, he called out, "Charlie, I think we ought to buy General Motors at 35. Do you agree?"

Silence. Not a word.

He moved halfway across the room and repeated himself. "Charlie, I think we ought to buy General Motors at 35. Do you agree?"

Still nothing.

Finally, standing right next to Munger's ear, Buffett asked the same question a third time.

Munger's response, delivered with his trademark deadpan: "For the third time, yes."

The crowd roared. The punchline landed perfectly: Buffett wasn't dealing with Munger's hearing problem. He was dealing with his own.

The First Meeting Without Charlie

That anecdote resurfaced with bittersweet resonance last year when Berkshire held its first annual meeting since Munger's death in November 2023. He was 99 years old, and his absence left a void that everyone in Omaha could feel.

For decades, Buffett and Munger sat onstage together, fielding questions from thousands of shareholders who traveled from around the world to hear their unfiltered takes on investing, business, human nature, and whatever else came up. The dynamic worked because they were different. Buffett was warm and patient. Munger was blunt and incisive. Together, they offered something rare: candor mixed with wisdom, delivered with humor.

Munger partnered with Buffett starting in 1959, and his influence on Berkshire can't be overstated. He famously pushed Buffett away from "cigar-butt investing"—the strategy of buying failing companies simply because they were cheap enough to squeeze out one last puff of value. Instead, Munger advocated for acquiring high-quality businesses at fair prices. That shift didn't just change Berkshire's portfolio. It redefined what value investing could mean.

A Life Built on Insight and Integrity

Munger served as Berkshire's vice chairman, but his reach extended well beyond that role. He held positions at Daily Journal Corp. and Costco, and built a reputation for commentary that was as sharp as it was unsparing. He had opinions on everything from market psychology to cryptocurrencies, and he wasn't shy about sharing them.

Born on January 1, 1924, Munger left the University of Michigan to join the U.S. Army Air Corps during World War II. He trained as a meteorologist and earned the rank of second lieutenant. After the war, he continued his meteorology studies at Caltech in Pasadena, California, which became his home for the rest of his life.

His legacy at Berkshire is built on more than investment philosophy. It's built on integrity, intellectual honesty, and the willingness to say what needed to be said, even when it wasn't popular. And yes, it's built on humor too—the kind that could turn a story about hearing loss into a lesson about listening.

Berkshire continues to perform strongly across multiple timeframes, maintaining the disciplined, long-term approach that both Buffett and Munger championed. The company's growth reflects the principles they built together, even as it moves forward without one of its founding voices.