Charlie Munger Reflects on Risks and Missed Opportunities in Investing
- Charlie Munger learned valuable investment lessons from Berkshire Hathaway's acquisition of See's Candies in 1972.
- Despite recognizing the talents of Jeff Bezos and Elon Musk, Munger deemed Amazon and Tesla too risky for investment.
- Munger's cautious approach ultimately led to successful investments in Apple, although he later wished for a larger stake.
In the United States, Charlie Munger, the late vice chairman of Berkshire Hathaway, reflected on his investment decisions regarding tech companies like Amazon and Tesla. Munger, who passed away on November 28, 2023, at the age of 99, had learned valuable lessons from Berkshire's acquisition of See's Candies in 1972. He and Warren Buffett sought companies with loyal customer bases at fair prices, which initially excluded Amazon and Tesla due to perceived risks. Munger admired Jeff Bezos and recognized Elon Musk as an 'extreme talent,' but he felt the risks associated with their companies were too high. Despite this caution, Amazon and Tesla emerged as some of the best-performing stocks in the market. Munger and Buffett eventually invested in Apple, which became one of their most successful decisions, although they later reduced their stake significantly in 2024. Munger's philosophy emphasized the importance of letting ideas die, reflecting a pragmatic approach to investing that balanced risk and opportunity.