In the old days, many would say that ‘behind every successful man is a supportive woman’. Thankfully, times have changed but there’s a kernel of wisdom in that antiquated phrase which still holds firm: success often comes down to who you surround yourself with. And it’s often the quieter ones we don’t hear about that can drive enormous value. 

 In the case of tech business, Atlassian, we all know of Mike Cannon-Brookes, but he is only half of a team that includes the lesser-known Scott Farquhar. Their combined success has generated them a cool $13 billion. Each! 

 Similarly, many know Google founder Larry Page, but Sergey Brin is his “other guy”. And so it is with the so-called greatest investor ever, the ‘Oracle of Omaha’, Warren Buffett, whose priceless sidekick is the aforementioned Charlie Munger. 

 Charlie sadly passed away in November 2023, aged 99. Even then he was still working, thinking and investing. Buffett was enormously thankful for his friend’s contribution to his own development and of course to the company they steered to success: Berkshire Hathaway.  

 This chart shows the unbelievable performance of this diversified business, which at its core is a legendary insurance business, but it started as textile manufacturer formed in 1955. 

 Buffett in 1962 started buying its stock until he took control and set the operation on a course that saw the share price go from $7.50 to today’s price of $769,960. 

 Berkshire Hathaway Inc Class A 

Last week Buffett announced his retirement at age 94. We were in the arena when it happened and added our applause to the chorus.

Those who witnessed Buffett’s last public AGM compared it to the last innings of Babe Ruth or Micky Mantle. My son, Marty, who attended this last hurrah in Omaha Nebraska, thought it was like watching Bradman bat his last innings.

Unlike the Don, however, Buffett didn’t end up with a duck on his last dig at the crease.

I don’t know if Bradman ever thanked anyone publicly for his success, but I know Buffett always praised the role of Munger.

Of him he has said: He was “the best 30-second mind in the world.” And “he sees the essence of everything before you can even finish the sentence.”

Many years ago, one of this country’s smartest investors, Mark Carnegie, told me he lived in awe of Munger’s insights and wisdom.

Podcaster Clay Finck undertook a study of Munger and pointed out how he had mental models, “which are essentially frameworks we can use to simplify our highly complex world and simplify it to something much more manageable and understandable.” In his own words describing this Munger-esque way of thinking about investing: “I’ve long believed that a certain system, which almost any intelligent person can learn, works way better than the systems most people use.

“What you need is a latticework of mental models in your head. And, with that system, things gradually get to fit together in a way that enhances cognition.” 

I could bore you all day with sermons from the Book of Munger, but I think this captures the essence of how Charlie helped his louder friend Warren drive a former textile company to a force of global finance.

Finck tell us: “Munger says that the ethos of not fooling yourself is one of the best mental models and is powerful because it’s so rare.

“When it comes to investing, many people are their worst enemy, and let their emotions get the best of them in both up and down markets.”

While Buffett has wisely counselled us to “be greedy when others are fearful and be fearful when others are greedy,” Munger would encourage us to think about what a poor investor would do and suggest you do the opposite!

Here are the mistakes Munger would tell you to avoid as an investor and words that I still live by in my daily business:

• Buy into the hype based on FOMO
• Sell when the market crashes and stocks are cheap
• Believe that they can time the market’s tops and bottoms
• Make decisions based on their emotions in the moment
• Incur excessive fees and taxes
• Invest in something they don’t fully understand

There are many lessons I’ve learnt from Buffett and his mentor mate Munger, such as buying quality companies when the market has a short-term set against the operation.

This advice drove me buy BHP at $17 in 2016 and Macquarie at $22 in 2008, and their education over the years made me go in hard buying stocks when the pandemic crashed markets in 2020.

S&P/ASX 200

I have learnt a lot from Warren Buffett over my years in investing and advice but the most powerful is that you have to hang out with smarter people, be it physically or via books, TV or the internet.

Ancient Roman thinker, Epictetus said: “The key is to keep company only with people who uplift you, whose presence calls forth your best.”

Buffett hung out and learnt from Munger, and his influence has come to the likes of me, who now shares it with you.

If you want to be good at investing in good companies that will build your wealth, you need to keep good company. And when you are in the good company of someone like Charlie Munger you learn things like this: “I believe in the discipline of mastering the best that other people have ever figured out. I don’t believe in just sitting down and trying to dream it all up yourself.”

In all of your endeavours to be successful, have a hunger for Munger-like people and they will gift you with competitive advantage-thinking, which will deliver outstanding results.