Until the final days: how Charlie Munger rewrote the rules of investing in the twilight of his life

Charlie Munger — legendary Vice Chairman of Berkshire Hathaway — lived a life that defied all notions of how people should live and act in old age. Until the very last moments of his existence, this giant of the investment world kept taking risks, learning, and changing his understanding of markets. A recent special report by The Wall Street Journal, based on memories from his family and close friends, reveals an unknown side of his personality — a portrait of a man who refused a peaceful coastal life to stay among people, projects, and opportunities that inspired him.

Munger’s choice to live in an old house without air conditioning in Los Angeles, rather than in a luxury ocean-view estate in Montecito, speaks to his priorities. He valued proximity to those he respected more than material comfort. This philosophy of simplicity ran through all his decisions, turning his final chapter into a period of active reevaluation.

From Skepticism to Action: Why Charlie Munger Returned to Coal Investments

Charlie Munger’s investment story contains many paradoxes, but one of the most striking is his decision in 2023 to invest heavily in the coal industry — an industry he had avoided for 60 years. This decision seemed counterintuitive at a time when most market participants believed in the inevitable decline of coal energy.

Munger’s logic was different. He saw a disconnect between the pessimistic forecasts of analysts and the real economy’s global energy demand. In his view, coal producers remained profitable, their stocks undervalued, and the industry was doomed to fade away only in textbooks. As his stepson Hal Bortwick recalls: “He read an article saying the coal industry was dead. He just said, ‘That’s ridiculous.’”

In May 2023, Munger made a series of purchases: Consol Energy shares, then a significant stake in Alpha Metallurgical Resources. This bet turned out to be not just successful but brilliant. By the time of his death, the value of his position had increased by several hundred percent, resulting in an unrealized profit of $50 million. This example clearly demonstrated that even at 99, intelligence and the ability to see what others miss remain the most valuable assets for an investor.

When Neighborhood Relationships Turn into an Empire: The Afton Properties Story

But Charlie Munger’s investment activities in his later years weren’t limited to financial markets. One of his most significant entrepreneurial ventures began with a simple knock on the door.

In 2005, young neighbor Avi Mayer, only 17 at the time, approached Munger. The young man was going through a crisis — struggling academically and seeing no point in the traditional educational path. Instead of advising him to follow the conventional route, Munger offered an alternative: education through observation and practice. He became his mentor and, more importantly, his listener.

Years later, when Avi Mayer and his childhood friend Ruvim Gradon decided to get into real estate, Munger saw an opportunity and chose to become their investor. Starting around 2017, the trio began buying small apartment complexes in Southern California. Over several years, they assembled a portfolio of about 10,000 units.

But Munger’s role was far from passive. He personally participated in every aspect of the business — from evaluating properties to choosing the color schemes for facades. When it was time to improve the grounds, Munger wanted to plant new trees — and spent hundreds of thousands of dollars on it. Behind this project was his conviction: a quality environment attracts and retains good tenants.

His financial strategy also reflected his thinking. On Munger’s advice, the team chose long-term fixed-rate loans to gain stability and hold assets for decades, not years. This tactic proved to be decisive: when interest rates later rose, the portfolio remained protected. Today, the value of Afton Properties is estimated at around $3 billion. Until the very last days of his life, Munger continued making investment decisions for the company, and the final property acquisition was approved just days after his passing.

Resilience in Life: Facing Old Age with Dignity and Humor

Charlie Munger’s health was not spared. A failed cataract surgery in 1978 left him blind in his left eye. Decades later, around 2014, problems began with his other eye — the optic nerve of his right eye was damaged, and doctors warned of possible complete blindness. At that moment, most people would have fallen into despair.

Munger chose a different path. According to his friend Lee Lu, he faced this prospect with composure and even began preparing to learn Braille. Fortunately, over time, his vision in the right eye slowly recovered. But even in this trial, Munger did not lose his characteristic sense of humor. He joked that the secret to his longevity was Diet Coke, and once complained to a guest: “Oh, if only I could go back to 86!” — words spoken already at age 99.

Losing mobility, Munger had to give up golf, but he never stopped actively participating in life. Every Tuesday, he had breakfast at the Los Angeles Country Club with a circle of businessmen and friends, discussing investment ideas and sharing his life philosophy. When his family tried to impose a healthy diet on him, he calmly rejected these attempts and happily enjoyed hot dogs from Costco, In-N-Out burgers, and Korean fried chicken.

His main fear was not physical frailty but spiritual loneliness. He understood that at his age, one must either constantly forge new connections or remain in complete isolation. Therefore, he cultivated friendships, organized meetings, and did not shut himself off from the world. This openness, paradoxically, extended his life — not physically, but spiritually.

The Final Conversation: How Two Legends Said Goodbye

After decades of collaboration at Berkshire Hathaway, the bond between Charlie Munger and Warren Buffett never weakened. They spoke once a week or every two weeks; their conversations were not just exchanges but dialogues of two great minds. However, the distance between Los Angeles and Omaha, plus hearing issues that marred their later years, made these talks increasingly difficult. According to Munger’s daughter-in-law Whitney Jackson, they literally shouted into the phone — their communication was so loud that neighbors could hear every word.

When a few days before his death Munger was taken to a hospital near Montecito, he realized it might be their last conversation. He asked his family to leave the room, and alone with his thoughts and phone, dialed Buffett’s number. The two legendary partners, who together transformed the investment landscape, said their final farewell. The content of that conversation remains a secret, but its essence was clear: gratitude, respect, and recognition that they had lived a life together, changing the course of financial history.

Charlie Munger left behind not just a portfolio of securities and real estate worth billions. He left a paradigm of how to live in old age — actively, curiously, with humor, and openness to new challenges. His example showed that age is not the end of innovation, but only its transformation.