Charlie Munger Was 'So Proud' Of This Money-Making Investment — But Then Bill Gates Came Along 'And Away Went Our $50 Million A Year'

When we look back on the life of Charlie Munger, the late billionaire investor and Warren Buffett's longtime partner at Berkshire Hathaway, it's clear he was a unique figure in the world of investing. Known for his sharp wit and even sharper investing acumen, Munger was a force to be reckoned with. But even the sharpest minds in finance can fall victim to the relentless march of technological progress — a fact Munger knew all too well.

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At the 2022 Daily Journal Annual Meeting, just a year before his death at 99, Munger was asked by CNBC's Becky Quick, "In your storied investor career, which investment did you like the most and why? And which one was a dog?" It was a classic, open-ended question that seemed to invite Munger's characteristic mix of humor and candor.

Munger's answer didn't disappoint. "And Berkshire made $50 million a year pre-tax out of that business for years and years and years," Munger began, speaking with a touch of nostalgia. "And I was always so proud of it because I grew up with it and it helped me."

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Munger was talking about World Book, a company Berkshire once owned that produced the World Book Encyclopedia — a staple of education in homes and schools across America. He described his pride not just in the money it brought in but in its educational impact: "World Book helped me get ahead in life," he noted. It was a product he believed in, one he felt made a genuine difference in people's lives.

But Munger also knew the reality of capitalism and its often brutal cycles of innovation and obsolescence. "And then a man named Bill Gates came along and he decided he's going to give away a free encyclopedia with every damn bit of his personal computer software," Munger quipped, recalling the moment that marked the end of World Book's dominance. "And away went our $50 million a year."

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It wasn't just a loss of revenue; for Munger, it was a loss of something valuable for society. The spread of easily accessible information online was, in many ways, beneficial, but Munger wasn't convinced it could replace the experience of diving into a comprehensive encyclopedia. "I don't think these TV programs that charm our children are as good as the World Book was for them," he lamented.

Yet, in typical Munger fashion, he faced the loss with a sense of humor and pragmatism. He wasn't about to dwell on the past or "weep any tears" over what was gone. "I've adjusted. I miss it, but I…" he trailed off, letting the audience read between the lines: life, and capitalism, would go on.

This story captures so much about Munger's personality: his attachment to things that shaped him, his respect for the old ways, and his pragmatism about the inevitable forces of change. Munger wasn't sentimental for sentiment's sake. He could appreciate the advantages of new technology while still holding onto the belief that not everything was better for it.

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