Charlie Munger made a fortune on his own account before joining Warren Buffett as partner and vice chairman of Berkshire Hathaway, Buffett’s $900bn investment vehicle. Buffett once noted that “Charlie thinks about business, economics and investment matters better than anyone I know and I’ve learned a lot over the years by listening to him”. Munger famously said that “A great business at a fair price is superior to a fair business at a great price”.
Buffett valued this thought since he had concentrated on value stocks early in his career. In this article we will examine some companies that fit Munger’s description. But before we do that, it is worth sharing one of the most famous of his many quotes about life. He said “All I want to know is where I’m going to die, so I’ll never go there”. Munger sadly died in November 2023, just five weeks before his 100th birthday. Interestingly, as a teenager he worked in a grocery store owned by Buffett’s grandfather.
Long-standing leaders in their field
A good example of a great company is Coca-Cola. Buffett invested $1bn in the company’s shares in 1988, when they cost $2.73. Since then the price has risen more than 22-fold. He has increased his stake over the years, and Berkshire Hathaway now owns 9% of the group. Coca-Cola’s recent share price is $60, with a forward price/earnings (p/e) ratio of 21.5 and a forward dividend yield of 3.2%. The dividend has been raised every year for 61 years. Berkshire has received dividends every
