Charlie Munger explains Warren Buffett’s success

The Kunhardt Film Foundation has released on YouTube the full interview that they did with Charlie Munger for the documentary Becoming Warren Buffett.

Right at the beginning of it, Charlie explains the factors that he believes explain Buffett’s success as an investor:

Munger: When I first met Warren, I recognized immediately that he was a very intelligent person.

And, of course, he was interested in the subject that I was also interested in, which was the process of being a successful investor.

And we have a similar sense of humor, we had a high old time probably making ourselves obnoxious to the other people in the room.

We both came from Omaha. We both worked in his grandfather’s grocery store.

So, we had a lot of common experience.

Question: What makes Warren’s mind unique?

Munger: Well, there’s a big correlation between success in life and an early start. And Warren had a passion for doing well competitively, in getting money, as a little tiny child. And he just kept it.

Now, you add [to that] a very high IQ and a lot of energy.

And he got a flying start. He was an old Graham-Newman follower, and he made a lot of money buying thinly-traded securities, that were incredibly cheap, statistically. And with small amounts of money — which is what he [was] working with — he could find enough of those to earn pretty high returns on capital year after year after year.

This ties in nicely with what Charlie has said on the topic of special advantages.

In Towards Greatness
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