You would think that Warren Buffett and Charlie Munger, the legendary investing duo behind Berkshire Hathaway's runaway success, met in a boardroom or a business school.
In case you did, you were wrong! They were introduced to each other by a well-known doctor couple in Omaha, who probably had no idea of what they would go on to achieve together.
What Happened: In the late 1950s, Warren Buffett was a young money manager slowly but steadily building a reputation for himself.
One day, he received a phone call from Dorothy Davis, the wife of Dr. Eddie Davis, a prominent local couple. Keen to learn about his investing approach, they invited Buffett over to their home.
While Dorothy listened closely, Dr. Davis seemed distracted--until, abruptly, he declared that he would invest $100,000 with Buffett, who was managing only $500,000 in total at the time. Taken aback, Buffett asked why. Dr. Davis bluntly replied, "You remind me of Charlie Munger."
See Also: Berkshire Hathaway Stock Falls Following Buffett’s Retirement As CEO
Why It Matters: That comment set off a domino effect. The Davises were family friends with the Mungers. When Munger came back to Omaha in 1959 after his father passed away, the Davises got the two men to meet over dinner.
Within minutes, both were laughing at each other's jokes, immediately bonding over shared "irreverence" and intellectual curiosity, as Munger described it in a joint interview in 2022.
Munger joked that their wives thought, "My God, another one," but to Buffett and him, it was the beginning of a lifelong partnership that ended with Munger's death in 2023.
On Saturday, Buffett announced his decision to step down as Berkshire Hathaway CEO at the end of this year, marking the end of an illustrious journey where Munger and his friendship played an indelible part.
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Photo courtesy: Kent Sievers/Shutterstock
