In the final moments of his life, he still had a fast-moving mind, maintaining a keen business sense and a passion for learning.

Written by: Ye Zhen

Source: Wall Street Journal

The last chapter of Charlie Munger's life was not a peaceful retirement by the seaside, but a vibrant time filled with contrarian investments and new challenges. This investment giant was actively making investment decisions, building new friendships, and calmly facing health challenges right up to the end of his life.

According to a recent feature report by the Wall Street Journal, in his later years, Munger abandoned his ocean-view mansion in Montecito, California, choosing instead to stay in his old Los Angeles home, which even lacked air conditioning, simply because it was closer to the people he admired and the projects that excited him.

In the last year of his life, Munger made a significant bet against the trend in an industry he had avoided for 60 years—the coal industry—and achieved over $50 million in paper gains. In his later years, he also collaborated with a young neighbor, deeply engaging in real estate investment and building an apartment empire valued at around $3 billion.

At the same time, this legendary vice chairman of Berkshire Hathaway faced health issues such as declining vision, but he dealt with them with calmness and humor, combating the loneliness that aging brought through regular breakfast meetings and gatherings with friends.

The report pieced together a little-known side of Munger through the memories of his family and friends, showing that even in his final moments, his mind was still racing, maintaining a sharp business sense and a passion for learning.

Contrarian Bet on Coal Stocks Yields Rich Returns

For an investor who had steered clear of the coal industry for 60 years, Munger's actions in 2023 surprised the market.

According to the Wall Street Journal, many investors were bearish on the industry due to a long-term decline in coal usage, but Munger saw a different logic. He believed that with the growth of global energy demand, coal would still be necessary, and many producers remained profitable while their stock prices were quite cheap.

"He read an article saying the coal industry was finished," recalled his stepson Hal Borthwick, "and he said, 'Nonsense.'"

Thus, in May 2023, Munger bought shares of coal producer Consol Energy and later that year purchased shares of metallurgical coal producer Alpha Metallurgical Resources. By the time of his death, Consol's stock price had doubled, and Alpha's stock price had also risen significantly, bringing him over $50 million in paper gains from these two investments.

Friendship Across Generations and Real Estate Empire

Another extraordinary investment in Munger's later years began with a friendship across generations.

In 2005, 17-year-old neighbor Avi Mayer knocked on Munger's door. At that time, Mayer was struggling academically and feeling lost about the future. Munger became his listener and mentor, supporting him in forgoing college to attend "Munger University"—learning through observation and practice.

A few years later, when Mayer partnered with childhood friend Reuven Gradon to venture into real estate, Munger decided to support their company, Afton Properties, after observing their early operations. Starting around 2017, the three collaborated to acquire nearly 10,000 low-rise apartments in Southern California. Munger was deeply involved in every aspect of the business, from site selection and building assessments to paint colors, even personally deciding to spend hundreds of thousands of dollars planting new trees to improve the landscape.

On Munger's advice, the company opted for long-term loans to lock in favorable interest rates and hold assets for the long term.

This strategy proved effective, with the Wall Street Journal citing insiders that Afton Properties currently holds assets valued at around $3 billion. Even in the final moments of his life, Munger was still involved in decision-making; a property acquisition deal located across from a Costco was finalized just days after his passing.

Facing Aging with Calmness and Humor

In the last decade of his life, Munger began to face health challenges.

The Wall Street Journal article noted that a botched cataract surgery in 1978 left him blind in his left eye, and around 2014, he experienced issues with the optic nerve in his right eye, facing the possibility of complete blindness. According to his friend Li Lu, Munger took this in stride, even preparing to learn Braille. Fortunately, his right eye's vision slowly improved later on.

As his mobility became increasingly limited, he gave up hobbies like golf and needed to rely on a cane to walk. However, he always faced the challenges of aging with humor. He would joke that his secret to longevity was Diet Coke and once lamented to a visitor, "Oh, if only I could go back to being 86." In terms of diet, his family eventually gave up trying to keep him on a healthy eating plan, and he enjoyed takeout foods like Costco hot dogs, In-N-Out burgers, and Korean fried chicken.

Worried about loneliness and becoming insignificant, he chose to enrich his life with closer social connections. Every Tuesday, he had breakfast with a group of businesspeople at the Los Angeles Country Club, sharing investment wisdom and life philosophy. He once told his friends, "At my age, you either make new friends or you have no friends at all."

Final Farewell to Buffett

Although Munger's daily involvement with Berkshire Hathaway decreased in the last decade of his life, his friendship and collaborative relationship with Buffett remained constant.

The two would talk on the phone weekly or biweekly, and due to Munger living in Los Angeles and Buffett in Omaha, along with both having hearing issues, communication became more challenging.

According to Munger's granddaughter-in-law Whitney Jackson, "They would shout into the phone. The conversation content might have been confidential, but anyone within a mile could hear it."

According to the Wall Street Journal, in the days before his death, Munger was taken to a hospital near Montecito. He asked his family to leave the room so he could make one last call to Buffett, and the two legendary partners said their final goodbyes.

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。