Did Charlie Munger ever oppose any of Warren Buffett's investment decisions? Are there any documented instances?

Did Charlie Munger Ever Oppose Some of Warren Buffett's Investment Decisions?

Hey there! As a long-time follower of the investment world, especially the stories of the Buffett-Munger duo, I’d love to share some insights. Charlie Munger and Warren Buffett formed a legendary partnership at Berkshire Hathaway Inc., collaborating for decades with remarkable alignment. However, Munger did occasionally oppose Buffett’s investment decisions—a well-documented fact both have openly discussed in interviews, annual meetings, and books. Munger, known for his rational and conservative approach, often candidly pointed out Buffett’s "blind spots." Below are a few verifiable examples drawn from Berkshire’s annual reports, biographies, and public records.

1. Investment in the Airline Industry (e.g., US Air)

• In 1989, Buffett invested in US Air (a predecessor to American Airlines), which later incurred significant losses. Munger had vehemently opposed the move from the start, arguing that the airline industry was hyper-competitive, capital-intensive, and prone to crises. At a Berkshire annual meeting, Munger later quipped, "Warren, you made a mistake. We should never have touched airlines."
• Sources: Berkshire Hathaway’s annual shareholder letters or Munger’s book Poor Charlie’s Almanack. Buffett himself admitted this was an error, crediting Munger’s opposition for limiting losses.

2. Investment in Salomon Brothers

• In the late 1980s, Buffett proposed investing in this investment bank, but Munger objected. He warned that the firm’s risk-prone culture could lead to scandals (which later materialized). Despite Munger’s advice against it, Buffett proceeded. The company nearly collapsed, forcing Buffett to intervene personally.
• Sources: Buffett’s biography The Snowball and archived shareholder meeting recordings. Munger remarked afterward, "I told you this wasn’t our kind of business."

3. Other Minor Disagreements (e.g., Coca-Cola)

• Munger initially hesitated when Buffett pushed for heavy investment in Coca-Cola, concerned about the beverage industry’s volatility. He was ultimately convinced, and the investment became a legendary success. Munger later acknowledged in interviews: "Warren’s intuition sometimes outpaces my analysis."
• Sources: Berkshire annual meeting videos (available on YouTube) or Munger’s speech collections.

Ultimately, Munger’s critiques weren’t mere opposition but a way to refine Buffett’s ideas through debate. Their disagreements were a key ingredient in their success—Munger acted as a "devil’s advocate," poking holes in proposals to prevent rash decisions. For deeper dives, I highly recommend Poor Charlie’s Almanack or their annual meeting footage, where such dynamics unfold authentically. Though advanced in age, Munger’s wisdom remains incredibly relevant! Feel free to ask if you’d like to explore specific examples further.