Charlie Munger Was Once Asked Why Warren Buffett Was So Much Richer — He Replied, 'He Got An Earlier Start,' Then Added, 'Why Was Albert Einstein Poorer Than I Was?'

At the Daily Journal Annual Meeting in 2019, 95-year-old Charlie Munger, then the vice chairman of Berkshire Hathaway, was asked why his longtime associate, Chairman of Berkshire Hathaway Warren Buffett, was "so much richer" than him. Munger's response, delivered in his characteristic tongue-in-cheek style, is one to remember.

What Happened: Towards the end of the two-hour-long meeting, an audience member asked Munger, "In spite of being partners for so long, why is Warren so much richer than you?" With a faint smile, Munger replied: "Well, he got an earlier start," before adding, "he was probably a little smarter," and "worked harder." Munger dismissed the idea of any complex analysis, saying, "There's not a lot of reasons."

Taking a pause, Munger joked, "Why was Albert Einstein poorer than I was?" suggesting that raw intellect alone does not always lead to extraordinary financial achievements.

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Why It Matters: Buffett and Munger first met in the 1950s, introduced by a doctor couple over dinner. Munger started his career as a lawyer, but later made his fortune by investing.

For him, wealth was a path to personal freedom: "I had a considerable passion to get rich… I wanted the independence. I desperately wanted it," he said. When they first met, Buffett's approach was buying undervalued stocks regardless of quality. Munger's influence led him to shift his strategy to buying great businesses at fair prices.

At the time of his death in 2023, Munger's net worth stood at $2.2 billion according to Forbes. Last month, reports indicated that Buffett's net worth has grown by $11.5 billion since the beginning of this year, reaching $154 billion.

Despite the vast difference in their fortunes, Munger and Buffett's partnership is the stuff of legend in the world of business. Together, they molded Berkshire into a mammoth holding company with a market capitalization of $1.11 trillion.

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