Charlie Munger Once Said Warren Buffett Is A 'Learning Machine' And That's What Lies Beneath Berkshire Hathaway's Success From One Decade To Another

In a powerful 2007 USC commencement speech, Charlie Munger, late billionaire investor and longtime vice chairman of Berkshire Hathaway, shared a vital lesson on success, highlighting how Warren Buffett's lifelong commitment to learning was a key factor in the company's legendary growth.

What Happened: During his address, Munger stressed that success isn't solely determined by what one already knows but by the continuous pursuit of knowledge.

"You're going to advance in life by what you're going to learn after you leave here," Munger told the graduates.

He used his own experience and that of Buffett as prime examples of the power of learning. 

"If you take Berkshire Hathaway, which is certainly one of the best-regarded corporations in the world, and it may have the best long-term investment record in the entire history of civilization, the skill that got Berkshire through one decade would not have sufficed to get it through the next decade with the achievements made," Munger said.

See Also: Charlie Munger Once Said That In His Entire Life, He Has Never Known A Wise Person Who ‘Didn’t Read All The Time — None, Zero:’ Here Are Some Books That The Berkshire Hathaway Vice Chair Recommended — And Not All Are About Finance Either

"Without Warren Buffett being a learning machine, a continuous learning machine, the record would have been absolutely impossible. The same is true at lower walks of life," he added.

He further credited Buffett's ability to continuously learn and adapt to new challenges as integral to the company's success.

Munger shared a telling example of Buffett's relentless drive for learning, saying, "I would say half of all the time that [Buffett] spends is just sitting on his a** and reading, and a big chunk of the rest of the time is spent talking one-on-one, either on the telephone or personally, with highly gifted people whom he trusts and who trust him." 

Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox.

Why It’s Important: Buffett and Munger first crossed paths in 1959, introduced by a mutual acquaintance in Omaha. At the time, Munger was working as a lawyer, but their conversation that day marked the beginning of something far more significant.

They quickly recognized a shared intellectual chemistry and similar views on investing — a foundation that would go on to shape the future of Berkshire Hathaway.

Munger played a key role in guiding Buffett away from simply buying undervalued companies toward investing in exceptional businesses with long-term potential.

Buffett, in turn, deeply valued Munger's clarity of thought and often credited him with influencing Berkshire's evolution.

For over six decades, their relationship remained grounded in mutual respect. They didn't try to outshine one another — they made each other better.

Munger passed away on Nov. 28, 2023, just a month shy of his 100th birthday. Buffett paid tribute to Munger in his first annual letter to shareholders following Munger's passing, calling him the “architect” behind much of the company’s success.

"Charlie never sought to take credit for his role as creator but instead let me take the bows and receive the accolades. In a way, his relationship with me was part older brother, part loving father," he wrote. "Even when he knew he was right, he gave me the reins, and when I blundered he never – never – reminded me of my mistake."

Photo Courtesy: Kent Sievers on Shutterstock.com

Check out more of Benzinga's Consumer Tech coverage by following this link.

Read Next:

• Charlie Munger Said Getting Rich Is Harder Than Ever, But Here's ‘The Beauty Of It' — You Only Have To Do It Once

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.