Charlie Munger Explains Berkshire Hathaway’s Long-Term Success

Out of all the possible topics in the world that Munger could have chosen to begin his letter to investors of Berkshire Hathaway, Munger began talking about the management system and policies that allowed Berkshire Hathaway to be so successful after giving a brief outline of what was to come. Although Munger didn’t explicitly say this, there is a reason why processes and systems are so important: they provide a template that systematically converts your labor into passive (or generally passive) sources of income.

There is a reason why high-profile football players and basketball players find themselves in long-term financial difficulty. It is because they fail to embark on this journey—either they spend … Read the rest of this article!