In fact, Munger's road to life can be said to be a typical realistic version of the American dream-a young man who works hard, does business in good faith, eventually becomes a billionaire and, with the help of a dedicated wife, gave birth to and raised eight children.

The annual investment event Buffett shareholders' meeting is about to be held. Buffett's "golden partner" Charlie Munger will return to the convention after his absence last year.

Many people are familiar with Buffett's growing-up story and family's history of getting rich, but the high ginseng behind him, and even Munger, who plays the role of mentor to some extent, although his famous aphorisms on various investments are also widely quoted, but this man's story is not what most people know.

In fact, Munger's road to life can be said to be a typical realistic version of the American dream-a young man who works hard, does business in good faith, eventually becomes a billionaire and, with the help of a dedicated wife, gave birth to and raised eight children. So where did it all start?

Early career

Munger was born in Omaha, Nebraska, on January 1, 1924, and Buffett will be born in the same city six years later. His mother, Todi, came from a wealthy intellectual family and developed Munger's habit of thirst for knowledge and constant reading and study. His father, Al, was a successful lawyer and inherited his father's career professionally-his grandfather was poor, but he became self-taught and eventually got rid of his low-level identity and became a federal judge.

Growing up in such a family, little Munger naturally inherited the family style of hard work and self-discipline. Although Munger did odd jobs at Buffett's grandfather's grocery store Buffett & Son when he was a child, he didn't have any overlap with Buffett, who was six years younger, and it was long before their lives began to fall in love.

In 1941, Munger left Omaha to study at the University of Michigan. In 1943, he temporarily suspended his studies and joined the United States Air Force. The military sent him to the California Institute of Technology, trained as a weatherman, and then sent to serve in Alaska. Although he had never really experienced a battle, his training and service had a profound impact on Munger's later life in many other ways-during which he met and married his sister's Scripps college roommate Nancy Huggins.

The young couple moved to Boston, where Munger entered Harvard Law School, their father's alma mater. Although he did not have a college degree, he received the honor of an excellent Latin degree. In 1949, Munger and Nancy moved to California with a son and two daughters, where he joined the law firm Wright & Garrett. In 1953, Munger and Nancy divorced, and the children lived with their mother, but still kept in close contact with their father.

Around the same time, Munger began investing for the first time, buying a stake in a troubled transformer company owned by one of his legal clients. In the most difficult period of his life, Munger encountered a lot of financial pressure. His nine-year-old son, Teddy, died of leukemia in 1955.

The way to get rich

In 1956, Charlie married another Nancy, Nancy Boswick (Nancy Borthwick), and accepted two children from his wife's previous marriage. They soon had four more children of their own. Although Munger spent most of his time in the office when the children were young, his family still played a very important role in his heart.

Munger's father died in 1959 and he had to return to Omaha for a while to take care of his family. It was then that Munger met Buffett through mutual friends. Munger recalled that Buffett left a deep impression on him at the first time, and the two hit it off.

Later, after Munger returned to California, he still often exchanged phone calls with Buffett, a long conversation can last for several hours, and the main topic of course was about the possibilities of investment.

Gradually, Munger replaced Benjamin Graham, the value investment guru and Buffett's mentor, as Buffett's new business partner and investment adviser.

In 1961, Munger formed a real estate investment partnership with a legal client to build his own apartment, and his brand soon became fashionable in Southern California. In 1962, Munger established a new law firm, Munger, Tolles, to recruit some of the best talents from the original firm. That year, he and his client Jack Wheeler formed an investment partnership, Wheeler,Munger & Co.

In 1967, Munger made a fortune selling his real estate development and continued to invest in similar projects with other partners. Success further fascinated Munger in the world of architecture and sharpened his ability to discover real estate trends and introduce new ideas when selling his projects.

Many of Munger's business partners later achieved great success. Munger, founding partner of Tolles, Rod Hills, became chairman of the Securities and Futures Commission. Hill's wife, Carla Anderson Hills, became a cabinet member in the Ford and Bush administrations.

In addition, Rick Hauser (Chuck Rickershauser), Ron Olson (Ron Olson) and Robert Denham (Dunham) have all become top lawyers.

Of course, Munger's early clients also included Buffett and a series of businesses that eventually became Berkshire Hathaway.

Although Munger officially withdrew from the legal profession in 1965, he has left a deep impression on the industry.

In essence, Wheeler, Munger & Co. Like Buffett Partnership, both belong to hedge funds, which often overlap in the companies and securities they invest in.

In fact, Munger will build his own partnership, which is largely the result of Buffett's urging. Rick Guerin started his investment career under the influence of Munger and often does business with him. Marshall later replaced Wheeler as Munger's partner.

Even after a major stock market downturn from 1973 to 1974, the average annual return of Wheeler and Munger between 1962 and 1975 was 24.3%, eclipsing the Dow's 6.4% over the same period.

Achievement giant

In the late 1960s and early 1970s, Munger, Geering and Buffett gradually acquired a controlling stake in Blue Chip Stamps. This small company is in the business of helping retailers issue coupons. Consumers collect these coupons and then go to stores to spend money.

What the three investors are interested in is the difference between the company's floating accounts-the coupons that have been issued and those that have already been used. Using this capital pool, three controlling investors have acquired several other companies.

• Wesco Financial--Blue Chip initially bought only a portion of the company, but by 1974 it had reached 80 per cent.

The deal also got into trouble with officials, and the CSRC sued Blue Chip, accusing it of manipulating Wesco's share price to stop other acquirers. The lawsuit was finally settled, Berkshire's complex controlling stake was combed out and Blue Chip became a wholly owned subsidiary. Munger became vice chairman of Berkshire, his first official position at the company.

Xi Shi candy-Munger and Buffett bought Xi Shi for $25 million in 1972, which is not cheap, three times as sophisticated as the company's assets at the time.

At first, Buffett was reluctant to accept more than the net worth of assets, because he has been learning and believing in the concept of value investment, the essence of which is to find and invest those assets whose prices are below book value.

However, Munger helped Buffett realize how good Xi Shi's business was and finally changed his tune. The new manager further consolidated the company's competitive advantage and delivered an excellent performance worthy of the purchase price.

Buffalo Evening News-in 1977, Blue Chip bought the Buffalo newspaper.

When a competitor filed an antitrust lawsuit against the newspaper, Munger picked up his legal skills. Competitors eventually collapsed in 1982, but even without competition, the newspaper industry struggled during the recession. However, Munger's own preference for newspapers prompted him to stick to it, which is now one of the most profitable newspapers in the United States.

In 1977, Munger suffered another difficult time in his life: his mother died and he lost an eye to a failed cataract surgery.

Mr Munger, however, is not depressed. In the late 1970s and early 1980s, Berkshire acquired a series of companies very quickly. Munger and Buffett have greatly broadened their horizons after learning from Xi Shi candy that some companies are really worth the premium.

Their investments during this period include GEICO, Nebraska Furniture Mart, Boersheim's, ABC, Gillette, American Airlines, SAFECO Corporation, Champion International and Coca-Cola Company.

In the 1990s, Berkshire became a gold-lettered signboard, allowing them to close more deals on more favorable terms. The $22 billion bailout of General Reinsurance made Berkshire the highest net worth company in the United States, significantly consolidating its position as an insurance giant. Berkshire pays management and directors relatively low salaries, only slightly above the minimum.

Berkshire's management philosophy does not involve any complex and mysterious growth formula. On the contrary, it is based on some of the simplest ideas-discovering value, understanding the transaction, being meticulous, and facing trouble. With the passage of time, the company and management gradually have a large number of followers around the world.

Do things in good faith

Munger's business ethics and credibility can be best demonstrated by two examples, one is the enemy of the entire savings and loan industry in the 1980s, and the other played a key role in the Salomon Brothers transition in 1991.

As chairman of Wesco Financial, Munger accurately predicted the savings and loan crisis of the late 1980s.

As early as 1983, he warned that the US government's deregulation of lending rights in the savings and loan industries would inevitably lead to a surge in unsustainable lending. In this case, Wesco gradually pulled out of the savings and loan business and reinvented itself as a holding company. Munger also invested in Solomon Brothers and Freddie Mac. Then, when the entire savings and loan industry began to collapse and the federal government was forced to come to the rescue, Wesco was not much hit.

At the time, Munger was often targeted by savings and loan industry group League of Savings Institutions when it lobbied aggressively. Mr Munger points out that lobbyists' desire to maintain unreliable regulatory mechanisms and refuse to take responsibility for the industry's problems will deal a major blow to the confidence of taxpayers, investors and the public in savings institutions.

Under his leadership, Wesco withdrew from the industry organization in 1989, formally waived the company's savings and loan charter in 1992, and called on the government to overhaul the industry. Eventually, the industry crumbled, confirming Munger's foresight.

In August 1991, Munger and Buffett, who were also listed on the board, discovered that a dealer at Solomon Brothers had made an illegal offer for US Treasuries. To make matters worse, the company's then executives, John Meriwether and John Gutfreund, knew it was happening, but hid the truth from the board for four months.

Munger forced the company to disclose the truth, and two executives who did not report it were resigned. In the face of huge legal trouble, he hired the top team of lawyers, including his old buddies Dunham and Olson.

To a large extent, it was because Munger tried to save it, and although Solomon Brothers was badly hit, the company survived. The company was fined $290 million, but no criminal charges were brought. Dunham became the new CEO, and they eventually sold the company to Travelers Group for $9 billion in 1997.

Here, there is an interesting detail worth adding. A group of employees unhappy with Munger's approach left Solomon Brothers to set up a hedge fund called long-term Capital Management. The fund was on the verge of collapse because of questionable real estate investment and the misuse of leverage, putting the entire US economy at risk.

Do what you say

Munger believes that financial support can drive social change. Although Munger himself is a Republican with a conservative stance, he firmly supports women's right to abortion and faces a series of consequences bravely.

He was first involved in the movement in 1969. He successfully persuaded Munger,Tolles to stand up for Dr. Leon Belous, who was found guilty of advising a woman on abortion. He persuaded many barristers to submit an amicus curiae statement to the court, and Beirus was acquitted with the repeal of California's anti-abortion law.

It was on the basis of this case that, in Roe v. Wade, three years later, the Federal Supreme Court made a decision recognizing women's right to abortion. Later, Munger also served as trustee and chief financial officer of a family planning organization in Los Angeles, and his views remained the same.

Munger is also concerned about medical and health issues. A friend invited him to join the board of Good Samaritan Hospital, a non-profit hospital, and Munger readily agreed and soon became chairman. As for the problems of short-sightedness and mismanagement in hospital management, like corruption, he has zero tolerance and will never stop once he finds it.

Although some doctors left under Munger's iron hand, he soon recruited more doctors. Good Samaritan Hospital soon became a highly respected hospital in the industry, ranking first in the United States in a 1998 survey by US News and World report. The road to transition is long and difficult, but Munger believes that all the efforts are worth it.

Munger was a millionaire before 1970, but he almost never left any extra money and reinvested the returns on every deal. In the early 1980s, after Berkshire's restructuring, Munger held a 2 per cent stake in the company. He paid about $40 a share for the shares. Now the price per share is more than $400000.

Although Munger owns several houses across the United States, he always keeps his expenses to a minimum and never asks the company to pay his high salary, because he thinks it will put a burden on shareholders. It is fair to say that Munger's every penny comes from the most old-fashioned way, that is, he earns it through his own efforts.