Warren Buffett & Charlie Munger - 57-Year Partnership: The Secret to Success

57-year partnership works because they like each other, minds work same way, find same things funny and deplorable. Never argued, many disagreements. Charlie's line: you'll agree because you're smart and I'm right. Every interaction brings new slant on ideas. Partnership been almost hilarious fun.

Philosophy: hang around good people, behave better each year. As you rise, particularly important. Don't deserve moral credit - figured out world rewards good behavior better. High road uncrowded, huge advantage with few competitors. Maturity is behaving better than other guy.

Don't agree on everything but respectful. Fundamental belief: world works better with win-win relationships. Both learned early: way to get good partner is to be good partner. Old-fashioned ideas work fabulously. People who sold to Berkshire deliriously happy - heartwarming to them.

Most important influence: Charlie hit Warren over head (two by four) to wean him from buying mediocre companies cheap (cigar butts) to wonderful businesses at fair prices. Focus on quality of business AND quality of individual. Kept Warren from mistakes with wrong people. Heavy lifting but improved Warren's behavior.

Much of their outlook comes from Omaha upbringing. Raised in similar environment. Both worshipped fathers who deserved worship. There's a lot of Omaha on both of them.

Charlie worked for Warren's grandfather at grocery. Learned working 10 hours for $2 is hard. Not gentle relationship - worked them hard. After shoveling snow 4 hours, couldn't uncrunch fingers. Grandfather said dime too little, dollar too much. Main lesson: didn't want to work at grocery.

Talk less than before because don't need to - unnecessary. Berkshire been real joy beyond just getting rich. Such happy experience. Formed literally hundreds of pleasant relationships with right kind of people.

Berkshire is own test tube for ideas not prevalent in business. Got to do things own way. Example: directors make $900/year - what other company attracts best directors for that. Created model they believe in. Want it to work because if fails, who pays attention. Everything worked out well.

Warren always looking for one more big deal, would rather Berkshire do well than himself. Charlie: like every deal but also that Berkshire keeps going after they're gone unchanged. Source of great pleasure. Most bureaucracies let defects creep in with prosperity. Don't think Berkshire will. Hope same 25 HQ people next year.