Dear Reader,
‘Damn Right!’ is a biography about Charles T. Munger that provides us with a clear example of why it is necessary, and how powerful we may grow, if we educate ourselves (self-education) and become multi-disciplinary.
Who is Charles T. Munger?
As the business partner and close friend to the former richest man in the world (Warren Buffett), Charles T. Munger is the vice chairman and the second largest shareholder of the famous holding company Berkshire Hathaway Inc. – which typically had a net income of $4.994 billion in 2008.
Importantly, like Warren Buffett, Munger did not inherit any wealth but built his fortune (more than $1.7 billion) by developing his business acumen and following certain principles.
He specifically attributes his success to self- education and the development of mental discipline.
The Life of Charles T. Munger (Chronology)
Charles Munger was born in Omaha, Nebraska on 1st January 1924. During this time, Omaha was a small, stable, and comfortable town; and Munger was raised in a typical middle class family with a loving mother and father, and two sisters.
In 1941, Munger (17 years old) left Omaha to enrol in the University of Michigan where he majored in mathematics.
However, through the end of 1942 (a few days after his nineteenth birthday) he joined the US military as part of America’s effort during World War II.
In 1946, Munger (22 years old) was discharged from the army, but before leaving, he followed a family tradition by applying to and being accepted into America’s oldest and most distinguished law school (Harvard University).
Nonetheless, Munger was initially rejected by Harvard and had to use his family connections in order to be admitted. In spite of this, Munger completed his studies in 1948 as one of 12 in a class of 335 members to graduate magna cum laude (the second highest grade).
In 1949, Munger was admitted to the California bar and joined Los Angeles law firm Wright & Garrett as a corporate lawyer.
However, after developing a successful career for a number of years, Munger had a ‘… considerable passion to get rich …. Not because I wanted Ferraris – I wanted the independence. I desperately wanted it. I thought it was undignified to have to send invoices to other people. I don’t know where I got that notion from, but I had it (p. 4).’
As a result, whilst in his mid thirties, Munger was starting his financial life over again and managing several careers at once … ‘he was a young man in a hurry, in a hurry to live a full life, in a hurry to get rich (p. 54).’
Therefore, after gradually accumulating money from his legal practice, Munger began investing in securities and joining friends and clients in their business dealings.
Furthermore, he began working on real estate projects that allowed him eventually to walk away with $1.4 million from his involvement, which further enabled him to move into the world of independent investing.
In 1959, Munger met Warren Buffett, who was building assets in Buffett Partnership as a fund manager (investment banker).
After their meeting, Buffett and Munger informally became partners, based on trust and a solid respect for one another’s intelligence; and they went on to study and acquire companies together such as Berkshire Hathaway.
In 1962, urged by Buffett, Munger phased out his legal career and became a professional investor who used other people’s funds to make a profit.
Self-Education
Munger was born into a family that believed in self-education and getting ahead through discipline, knowledge, and self-control.
Therefore, even though Munger initially had trouble learning to read, his mother took it upon herself to teach him phonics (a method of teaching elementary reading and spelling), and whatever was holding Munger back quickly disappeared (moreover he was soon being moved ahead in school).
Consequently, Munger developed a deep interest in literature, science, and the teachings of great thinkers.
He is a non-fiction reader who read voraciously about everything from dinosaurs to black holes, and reads a hundred biographies each year.
Naturally, due to his extensive reading, Munger was able to get along with Warren Buffett immediately, as both men read extensively and highly valued intelligence.
What is more, in partnership with Buffett, Munger brought a business law perspective, and could (as claimed by others) analyse and evaluate any kind of deal faster and more accurately than any man alive.
‘Munger thinks outside of the box, which has led him to form some interesting conclusions and has provided him with the ability to zero in on things that are crucial to making good business and investments decisions.’
Multi-Disciplinary
Intriguingly, Munger’s experience and extensive reading has caused him to become critical of the education system.
In particular, he argues that undergraduates specialise too early and never learn some subjects that they cannot live well without.
‘They don’t know enough about the world (p. 222).’ His argument is based on the premise that many problems by their nature cross many academic disciplines, however, our education is far too uni-disciplinary: separated into distinct academic subject areas.
As a result, he points out that
‘Using a uni-disciplinary approach to solve real life problems is woefully inadequate; nonetheless, he has found that too much of this thinking remains in professional practice.’
As a solution to the problem, Munger informs us that in the past he took elementary physics and maths and paid enough attention to assimilate the fundamental organising ethos of hard science.
He then pushed further and further into studying softer and softer subjects, using the scientific ethos as his organising guide and filing system. As a result, he concludes that his
‘Multi-disciplinary approach disproportionately enhanced his ability to serve anything he loved, and allowed him to achieve large gains in places that seemed unlikely when he started out, sometimes making him like the only one without a blindfold in a high-stake game of pin the donkey.’
Conclusion
After reading numerous biographies and books around the subject of personal and spiritual development, as a law graduate, I unintentionally had an enhanced ability to understand the strengths and weaknesses of the legal profession – which enabled me to see things that my peers, teachers, and practicing lawyers could not.
As a result, my extensive reading has allowed me to appreciate the importance of being multi-disciplinary, especially as I continue to observe how a uni-disciplinary mindset prevails throughout various professions within society (e.g. politics, media, healthcare, banking, business, medicine, etc.)
– causing many people to lack the ability to form long-term solution to reoccurring personal and professional problems.
As highlighted in this review, with the use of self-education and a multi-disciplinary approach, Charles Munger was able to transform himself from an average corporate lawyer into an exceptional and legendary professional investor.
Ultimately, his life reveals, amongst many other things, how
‘Knowledgeable, productive, effective, successful, free, and inspirational many of us may become (hence truly intelligent), if we embrace self-education and study in a way that encourages us to become multi-disciplinary.’
It is important to mention that within this review I could not explore many other aspects of Munger’s life that have contributed to his success and served as powerful lessons for worldly self-advancement.
As a result, I strongly advise those who are serious about developing their talents, or taking-themselves-to-the-next-level, to read this book, as I am sure that it will provide an invaluable contribution to your overall development.
As always, should you have any comments, questions, or require additional information, please feel free to contact me.
In the meantime, I hope you pursue self-education and make it multi-disciplinary!
Truly yours,
Tom