At the ripe age of 99, most individuals are slowing down and enjoying their retirement years. However, legendary investor Charlie Munger was not one to rest on his laurels. In a surprising turn of events, Munger made a bold investment in coal in 2023, a move that shocked even his closest friends and colleagues.
According to a detailed profile by The Wall Street Journal, titled “The Untold Story of Charlie Munger’s Final Years,” Munger, the vice chairman of Berkshire Hathaway, decided to take a leap of faith into the coal industry after steering clear of it for six decades. Despite the prevailing sentiment that coal was a dying industry, Munger saw an opportunity where others saw only decline. He believed that certain coal producers, particularly those involved in metallurgical coal for steelmaking, were undervalued and poised for growth.
In May 2023, Munger made a significant investment in Consol Energy, followed by another investment in Alpha Metallurgical Resources later that year. By the time of his passing in late November 2023, just weeks before his 100th birthday, both investments had yielded substantial returns. Consol’s stock had doubled, and Alpha had also seen significant gains, resulting in paper gains exceeding $50 million for Munger.
Munger’s stepson, Hal Borthwick, described the investment as a “very large bet” that paid off handsomely. Despite his advanced age, Munger remained actively engaged in investing and regularly communicated with his longtime business partner, Warren Buffett. Their weekly conversations, characterized by their mutual hearing issues, were often loud and animated, a testament to their enduring partnership.
In addition to his coal investment, Munger was involved in various other ventures in his later years. He continued to serve as a board member for Costco, where his stake was valued at $100 million. He also invested in smaller firms in Boston and Melbourne, Australia, and supported hedge fund manager Li Lu’s Himalaya Capital, earning him the moniker of the “Chinese Warren Buffett.”
In a recent interview with Business Insider, Li Lu praised Munger’s deliberate and calculated approach to investing, emphasizing his insistence on high odds of success before making a move. Munger’s coal trades, which defied market consensus, exemplified his commitment to independent thinking and disciplined decision-making.
Munger’s late-in-life investment in coal was not just a financial success but also a reflection of his unwavering conviction and ability to see opportunities where others saw obstacles. Even in his final years, Munger remained sharp, astute, and unafraid to go against the crowd, showcasing a timeless investment philosophy that transcended age.
In a world where markets often misjudge reality, Munger’s story serves as a poignant reminder that there is still room for those who are willing to trust their instincts, think independently, and challenge conventional wisdom. At 99, Munger demonstrated that age is no barrier to success in the world of investing, leaving behind a legacy of bold moves and strategic foresight that investors of all ages can learn from.
