Synergy of Success

Charlie Munger’s passing at the end of November not only marked the end of a remarkable business career, but also brought an end to a truly unique working relationship with Warren Buffet. The famous pair first teamed up in 1975 and continued building an enormous business empire for more than four decades. At its core, the partnership between Warren Buffett and Charlie Munger at Berkshire Hathaway was a shining example of effective collaboration and mutual respect. Here are five principles that made their partnership so successful and can be applied to any partnership.

1. Embrace Nonhierarchical Collaboration
Buffett and Munger thrived in a nonhierarchical setting where open communication and mutual criticism were celebrated. Despite significant disagreements, their profound respect for each other was crucial for Berkshire Hathaway's success. This approach highlights the importance of open dialogue and equal partnership in achieving collective goals.

2. Shared Vision and Trust
Their bond was reinforced by a shared vision and deep trust in each other’s judgment. They focused on long-term value over short-term gains, a philosophy that has become synonymous with their names. This principle underscores the importance of aligning on core values and objectives while cultivating trust and understanding within the partnership.

3. Continuous Learning and Improvement
Buffett and Munger demonstrated an unwavering commitment to continuous learning. Buffett, known for his extensive reading habits, believes that learning leads to wisdom. Munger might have been one of the few business leaders to read more than Buffet! This principle of being open to new information and continuously improving can be vital for any partnership striving for long-term success.

4. Surrounding Themselves with Capable People
Buffett believes in surrounding oneself with people who are smarter and more capable in specific areas. This approach allows for leveraging diverse strengths and expertise, leading to better decision-making and innovation. It's a reminder that the strength of a partnership often lies in its ability to embrace and utilize the diverse skills of its members. While Buffet had a folksy more optimistic style, Munger provided an acerbic, more skeptical view of things. Munger shot down so many deals that Buffer referrred to him as the “Abominable No Man”.

5. Kindness and Emotional Intelligence
An often-overlooked aspect of their partnership was their approach to emotional intelligence and kindness. Buffett emphasizes the importance of being kind and maintaining positive relationships with employees, investors, stakeholders, and customers. This principle highlights the role of emotional intelligence in building a sustainable and harmonious business environment. “We’ve got an extremely good partnership and business is more fun — just as life is more fun — with a good personal partner and to have great business partner,” Buffett said. “You know it’s just — we’ve accomplished more but we’ve also had way more fun.”

While few of us will be able to replicate the multi-decade track record of this business partnership - the principles and working relationship they forged can inspire all of us to leverage and improve our teamwork skills!