Berkshire Hathaway CEO Warren Buffett remembered Charlie Munger, the group's former vice chairman, as the company's “architect” and a formidable partner in his first annual letter to shareholders since Munger's death.
“Charlie was the 'architect' of today's Berkshire, and I acted as 'general contractor' to implement his day-to-day vision,” Buffett wrote in the letter to shareholders.
Buffett said his relationship with his longtime business partner was “part big brother and part loving father.”
“Charlie never sought credit for his role as creator, but instead allowed me to bow down and take accolades. In a way, his relationship with me was part big brother, part loving father,” Buffett wrote. “Even when he knew he was right, he gave me control, and when I made a mistake, he never reminded me of my mistake.”
Charlie Munger, a friend and business partner of Warren Buffett, has died at the age of 99
“In the physical world, great buildings are associated with their architect, while those who poured the concrete or installed the windows are quickly forgotten. Berkshire has become a great company. Although I have been in charge of the construction crew for a long time, Charlie must That goes on forever and he added credit for being an architect.
In the letter to shareholders, Buffett urged investors to largely ignore the final numbers and focus instead on Berkshire's operating earnings that exclude investments.
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“The primary difference between the reported numbers and those preferred by Berkshire is that we exclude unrealized capital gains or losses that can sometimes exceed $5 billion per day,” Buffett wrote. “Ironically, our preference was largely the norm until 2018, when ‘optimization’ was imposed. Galileo’s experiment, centuries ago, was supposed to teach us not to mess with mandates from above. But, in the Berkshires, we can be stubborn.” “.
Buffett also tempered expectations for Berkshire's stock price, saying the company's huge size “leaves no potential for eye-catching performance.”
“There are only a few companies in this country capable of making a real difference at Berkshire, and they have been chosen by us and endlessly by others,” Buffett wrote. “Some we can appreciate, some we cannot.”
The 93-year-old billionaire also assured investors that Vice Chairman Greg Appel, his successor, is “prepared in every way to be Berkshire CEO tomorrow.”
Buffett's heartfelt tribute to Munger came after his business partner and friend died in November at the age of 99.
“Berkshire Hathaway could not have been built to its current position without Charlie's inspiration, wisdom, and involvement,” Buffett said in a statement at the time of his death.
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In addition to being vice chairman of Berkshire, Munger was a real estate lawyer, president and publisher of the Daily Journal Corp., a member of the Costco board of directors, a philanthropist and an architect.
Fox News Digital's Stephanie Price contributed to this report.