Charlie Munger Net Worth: How a $2.6B Fortune Revealed an Unconventional Investment Philosophy

When Charlie Munger, the legendary partner of Warren Buffett at Berkshire Hathaway, passed away in November 2023, his estate unveiled a surprising truth about one of investing’s greatest minds: almost his entire fortune—roughly $2.6 billion—was concentrated in just three investments. This wasn’t accidental or a sign of poor planning. It was a deliberate rejection of conventional wisdom, a bold statement about what he called diversification’s dirty little secret.

“Diversification is a rule for those who don’t know anything,” Munger once declared at a 2017 conference. Buffett echoed similar sentiments, noting that diversification made “very little sense for anyone that knows what they’re doing.” For both men, the strategy wasn’t about spreading bets; it was about making conviction bets.

The Philosophy Behind Unconventional Concentration

Before Munger joined Berkshire Hathaway, he ran his own investment fund and delivered average annual returns of 19.5% from 1962 to 1975—roughly four times the Dow Jones Industrial Average’s performance during that period. This wasn’t luck. It was the result of a disciplined approach: find businesses with sustainable competitive advantages (what investors call “moats”), understand them deeply, then invest heavily.

Like Buffett, Munger sought out companies that could thrive regardless of economic conditions because their market positions were virtually unassailable. He looked for wonderful businesses trading at fair prices—a philosophy that eventually shaped how Buffett himself viewed investing. After Munger’s death, Buffett credited him as the “architect” behind Berkshire’s modern-day success and acknowledged that Munger had fundamentally shifted his entire investing approach.

The lesson was clear: know your businesses, know your edge, and don’t apologize for concentration.

Investment #1 – Costco Wholesale: The Fanatic’s Hold

Munger didn’t just own Costco shares; he served on its board for decades and openly called himself “a total addict” of the company. In 2022, he professed to “love everything about Costco” and vowed never to sell a single share. At that time, he held over 187,000 shares worth roughly $110 million, making him the company’s second-largest shareholder.

It wasn’t blind loyalty. Costco represents exactly what Munger admired: a company with an impenetrable moat—its membership model creates recurring revenue, customer lock-in, and a competitive barrier that’s nearly impossible to replicate at scale.

Since Munger’s passing in late 2023, Costco shares have surged 47%, while the company simultaneously raised its dividend by 27%. Shareholders also received a special $15-per-share dividend in January 2024, delivering an additional 2.3% yield to those on record. The message seemed clear: Munger’s faith in the business had been vindicated.

Investment #2 – Himalaya Capital: The $88M Bet on Li Lu

In the early 2000s, Munger made a fascinating move: he handed over $88 million to Li Lu, a Chinese investor known as “the Chinese Warren Buffett” for his success applying value investing principles to emerging markets. Li Lu founded Himalaya Capital, a hedge fund explicitly built to follow the value investing doctrines of Buffett, Munger, and Benjamin Graham.

Munger’s confidence proved well-founded. His initial investment multiplied substantially over the years, and he regularly described Himalaya’s returns as “ungodly”—high praise from a man not given to exaggeration.

As a private hedge fund, Himalaya doesn’t publicly disclose its full track record, making precise performance difficult to assess. However, its largest holding—Alphabet, Google’s parent company—made up nearly 40% of the fund’s assets as of the most recent regulatory filing. Since Munger’s death, Alphabet shares have climbed 130%. Another top holding, Berkshire Hathaway itself, also delivered solid performance during the same window. These holdings suggest that Himalaya’s overall portfolio likely generated strong double-digit returns.

Investment #3 – Berkshire Hathaway: The Lion’s Share

Here’s where Munger’s story becomes particularly intriguing. His $2.6 billion net worth—modest compared to Buffett’s—tells a story about discipline and sacrifice. Munger owned roughly 4,033 Class A shares of Berkshire Hathaway at the time of his death, worth approximately $2.2 billion. That means nearly 90% of his net worth sat in a single company.

Why so concentrated? Because early in his investing career, Munger made a strategic choice that reduced his Berkshire holdings substantially. He sold or donated approximately 75% of the 18,829 Class A shares he held in 1996. Had he retained those original positions, his net worth would have swelled to roughly $10 billion—a fortune left on the table by choice.

Yet even at 90% of his wealth, Munger held firm. His conviction in Berkshire’s business model and Buffett’s stewardship never wavered. Since his passing, Berkshire Class A shares have appreciated 37%, validating his unwavering faith.

Two Years Later: Assessing the Three-Bet Portfolio

Nearly two and a half years after Munger’s death, how have his three concentrated bets performed?

Berkshire Hathaway Class A shares have returned 38% since November 2023. Costco shares have climbed 47%. The broader S&P 500, by contrast, rose 52%—meaning both of Munger’s largest holdings, while performing respectably, slightly trailed the overall market.

Himalaya Capital’s public returns remain opaque, but its top holdings suggest strong performance, likely in the double-digit range.

On the surface, Munger’s portfolio underperformed. But that’s a incomplete view of investing success. His three holdings—Costco, Himalaya Capital, and Berkshire Hathaway—represent businesses with fortress-like fundamentals. They’re dramatically less risky than the broader market. For a conservative investor like Munger, that risk-adjusted performance profile likely appealed far more than chasing additional percentage points.

What Munger’s Concentration Strategy Still Teaches Us

Munger’s investment approach—concentration, conviction, patience—represents a direct counterpoint to modern portfolio theory’s push for maximum diversification. His lifetime returns demonstrated that when you truly understand a business, when you’ve identified companies with genuine competitive advantages, diversification becomes unnecessary.

His death didn’t invalidate that philosophy. Even as his core holdings have appreciated, the principle remains: know your businesses, size your bets accordingly, and don’t apologize for concentration. In a world obsessed with spreading risk across dozens of holdings, Munger showed that concentration—backed by deep knowledge and genuine conviction—could build generational wealth.

The question for today’s investors isn’t whether to copy Munger exactly, but whether they possess the expertise, discipline, and conviction to do so. For most, the answer remains: diversify widely. But for those rare few who combine Munger’s knowledge with his courage, the rewards of concentration can be extraordinary.