At 99, most individuals are slowing down. Charlie Munger was doubling down—on coal.
Based on The Wall Avenue Journal’s deep-dive profile on Thursday, “The Untold Story of Charlie Munger’s Ultimate Years,” the Berkshire Hathaway vice chairman made a surprising funding in 2023 that shocked even his shut buddies. After steering away from coal for six many years, Munger out of the blue jumped in with each ft—and walked away with greater than $50 million in paper good points.
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The transfer got here from the identical library he’d labored in for many years—a room with out air-con, the place buddies as soon as hauled in ice and electrical followers throughout a heatwave to maintain him snug. Sitting in a recliner, surrounded by inexperienced Worth Line binders, Munger nonetheless had the identical sharp eye for worth he’d develop into identified for throughout a legendary investing profession.
Munger got here throughout an article declaring coal “down the chute,” the Journal reported. He wasn’t shopping for it. “Horse feathers,” he informed his stepson, Hal Borthwick. Whereas the trade had seen a long-term decline, Munger believed many coal producers remained extremely worthwhile and deeply undervalued—particularly these producing metallurgical coal, which continues to be crucial to world steelmaking.
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So in Might 2023, Munger bought shares of Consol Power. Later that yr, he added Alpha Metallurgical Sources to the combo. By the point of his demise in late November 2023—simply weeks shy of his a hundredth birthday—Consol’s inventory had doubled, and Alpha had soared as nicely. Pals near Munger stated the mixed paper good points from the 2 positions exceeded $50 million.
“He made a really massive guess, and it turned out rather well,” Borthwick informed The Journal.
The coal commerce wasn’t a fluke. Whereas Munger was now not deeply concerned in Berkshire’s day-to-day operations—regardless of holding a $2.2 billion stake—he was removed from retired. Based on the Journal, he spoke with Warren Buffett each week or two. Each males had listening to points, which made calls extra dramatic than discreet.
“They might scream to one another,” stated Whitney Jackson, Munger’s grandson’s spouse. “It was doubtless meant to be confidential, however anybody inside a mile’s radius might hear them.”
In his later years, Munger additionally poured vitality into different ventures. He remained a faithful board member of Costco, the place his stake was reportedly value $100 million. He invested in smaller companies in Boston and Melbourne, Australia, and backed hedge fund supervisor Li Lu‘s Himalaya Capital—usually dubbed the “Chinese language Warren Buffett.”
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In an interview with Enterprise Insider posted early this yr, Li stated that Munger’s coal trades weren’t simply gutsy—they had been deliberate. “He might nonetheless go in opposition to the market consensus and dwell to see this inventory double,” Li stated, including that the place remained within the Munger household portfolio and was nonetheless performing nicely. He emphasised that Munger insisted on unusually excessive odds—round an 80% likelihood of success—earlier than making a transfer, a typical that separated him from extra aggressive risk-takers. Even in his ultimate yr, Munger was making use of the identical ideas that constructed his fortune.
Throughout Berkshire Hathaway’s annual assembly again in 2015, he famously remarked, “If individuals weren’t so usually incorrect, we would not be so wealthy.” That mindset did not fade with age. Even at 99, he stayed alert to moments when markets misjudged actuality—and acted accordingly. His late-in-life coal funding wasn’t about nostalgia or luck; it was a pointy reminder that in a world fast to jot down issues off, there’s nonetheless room for these prepared to look twice, assume independently, and belief their very own math.
And at 99, Munger nonetheless had the conviction—and readability—to name out the gang, purchase when others bailed, and stroll off with a win most buyers half his age would envy.
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This text Charlie Munger Made Over $50 Million Betting On Coal At 99—After Avoiding It For 60 Years and Calling The Panic 'Horse Feathers' initially appeared on Benzinga.com
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