The house of value that Charlie Munger co-built
insurance, textiles, retailing, candy, promotional services and newspapers. In 2022, Berkshire’s assets stood at about $948 billion—a compounded annual growth of 17%. Of this, about $308 billion, or about 30%, was in listed businesses run by others.
The rest was housed in businesses owned by it. Berkshire is now a sprawling conglomerate of about 70 companies across multiple sectors, with additions including rail transport, power, natural gas, apparel, aviation services and fast food. In all this while, despite being oblivious to the market, Berkshire has had a positive return in 47 of the 58 years since 1965.
A big reason for this is the Buffett-Munger partnership, and how they married fundamental principles of investing with execution. They deliberated on buy decisions. But once they chose a business, they committed in a big way—and for the long haul.
For example, the top five holdings in the Berkshire stock portfolio regularly account for 60% of its total value, even more. It’s held on to businesses like Coca-Cola and American Express for 30-40 years. Buffett was effusive in his praise for Munger.
In his letter marking Berkshire at 50, he wrote: “…Charlie has a wide-ranging brilliance, a prodigious memory, and some firm opinions. I’m not exactly wishy-washy myself, and we sometimes don’t agree. In 56 years, however, we’ve never had an argument.
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