Business
Charlie Munger, Who Helped Warren Buffett Build Investment Powerhouse Berkshire Hathaway, Dies At 99
OMAHA, Nebraska – Charlie Munger, who assisted Warren Buffett in transforming Berkshire Hathaway into an investment juggernaut, died in a California hospital. He was 99.
Berkshire Hathaway confirmed in a statement that Munger died Tuesday morning at the hospital, just over a month before his 100th birthday.
“Berkshire Hathaway could not have been built to its present status without Charlie’s inspiration, wisdom and participation,” Buffett said. The legendary investor also paid respect to Munger in his annual letter to Berkshire shareholders earlier this year.
Munger acted as Buffett’s sounding board for investment and business choices and helped run Berkshire Hathaway for more than five decades as its vice chairman.
Charlie Munger, Who Helped Warren Buffett Build Investment Powerhouse Berkshire Hathaway, Dies At 99
Munger had needed a wheelchair for years to move around, but he had stayed mentally alert. That was evident as he handled hours of questions at the annual meetings of Berkshire Hathaway and the Daily Journal Corp. earlier this year and in recent interviews with an investing podcast, The Wall Street Journal, and CNBC.
Munger liked to remain in the shadows and let Buffett be the face of Berkshire Hathaway, and he frequently downplayed his contributions to the company’s extraordinary success.
On the other hand, Buffett has always credited Munger for pushing him beyond his early value investing tactics to acquire wonderful businesses at low prices, such as See’s Candy.
“Charlie has taught me a lot about valuing businesses and human nature,” Buffett stated in 2008.
Buffett’s early success was founded on lessons learned from former Columbia University professor Ben Graham. He would buy stock in companies selling for less than their assets were worth and then sell the shares when the market price rose.
Munger and Buffett began purchasing Berkshire Hathaway stock in 1962 for $7 and $8 per share, respectively, and bought ownership of the New England textile factory in 1965. Over time, the two brothers molded Berkshire into its current conglomerate by reinvesting profits from its businesses in companies such as Geico Insurance and BNSF Railroad. They also kept a high-profile stock portfolio, including big Apple and Coca-Cola stakes. The stock reached $546,869 on Tuesday, and many investors became wealthy by holding on to it.
Munger gave a lengthy interview to CNBC earlier this month in anticipation of his 100th birthday, and the business network aired parts from that discussion on Tuesday. In his characteristically self-deprecating tone, Munger summarized Berkshire’s achievement as avoiding mistakes and working well into his and Buffett’s 90s.
“We got a little less crazy than most people and a little less stupid than most people and that really helped us,” remarked Munger. In a special letter he published in 2014 to commemorate 50 years of helping manage the company, he went into greater depth on the reasons for Berkshire’s success.
Charlie Munger, Who Helped Warren Buffett Build Investment Powerhouse Berkshire Hathaway, Dies At 99
Buffett and Charlie resided more than 1,500 miles (2,400 kilometers) apart for their collaboration, but Buffett stated he would phone Munger in Los Angeles or Pasadena to confer on every major decision he made.
“Many will miss him, perhaps none more than Mr. Buffett, who relied heavily on his wisdom and counsel.” I envied their friendship. “They challenged each other while also seeming to enjoy each other’s company,” Edward Jones analyst Jim Shanahan said.
Berkshire would probably do fine without Charlie, according to CFRA Research analyst Cathy Seifert, but there is no way to replace the role he served. After all, Munger was one of the few people ready to tell Buffett he was incorrect about something.
“The most pronounced impact, I think, is going to be over the next several years as we see Buffett navigate without him,” he said.
Charlie grew raised in Omaha, Nebraska, only five blocks from Buffett’s current home, but because Munger is seven years older, the two men never met as youngsters, even though both worked at the grocery shop owned by Buffett’s grandfather and uncle.
When the two men met at an Omaha dinner party in 1959, Munger was a Southern California lawyer, and Buffett headed an investing business in Omaha.
Buffett and Munger hit it off right away, according to the biography in the canonical book on Munger, “Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger.”
During the 1960s and 1970s, the two men traded investment ideas and occasionally invested in the same companies. They became the two largest shareholders in one of their mutual investments, trading stamp maker Blue Chip Stamp Co., and purchased See’s Candy, the Buffalo News, and Wesco. Munger was appointed vice chairman of Berkshire Hathaway in 1978 and chairman and president of Wesco Financial in 1984.
Berkshire’s legions of devoted shareholders who frequently filled an Omaha arena to hear the two men will recall Munger’s curmudgeonly comments when addressing questions alongside Buffett at the annual meetings.
Charlie was well-known for saying, “I have nothing to add” after several of Buffett’s lengthy responses at Berkshire meetings. However, Munger frequently provided crisp responses that cut to the heart of an issue, such as his advice on finding a solid investment in 2012.
“If it’s got a really high commission on it, don’t bother looking at it,” he told me.
Whitney Tilson, an investor, has attended the Berkshire Hathaway annual meetings for the past 26 years to learn from Charlie and Buffett, who shared life lessons and investing advice. Tilson stated that Charlie taught that after attaining some success, “your whole approach to life should be how not to screw it up, how not to lose what you’ve got” because reputation and integrity are the most valuable assets and can be lost in an instant.
“In the investment world, it’s the same thing is in your personal world, which is your main goal should be avoiding the catastrophic mistakes that could destroy an investment record, that can destroy a life,” he stated.
“Charlie has taught me a lot about valuing businesses and human nature,” Buffett stated in 2008.
Munger famously summarized the counsel, “All I want to know is where I’m going to die so (that) I never go there.”
Munger was well-known for being an avid reader and student of human behavior. He used several models from fields such as psychology, physics, and mathematics to evaluate potential investments.
Munger attended the University of Michigan in the 1940s but dropped out to serve as a meteorologist in the Army Air Corps during WWII.
He then acquired a law degree from Harvard University in 1948 despite having yet to complete an undergraduate degree. He co-founded a legal practice in Los Angeles that carries his name today, but he quickly realized that he preferred investing.
At one point, Charlie had a fortune of more than $2 billion and was named one of the wealthiest Americans. Munger’s fortune dwindled over time as he gave away more of it, but the ever-increasing value of Berkshire’s stock kept him affluent.
Munger has greatly contributed to Harvard-Westlake, Stanford University Law School, the University of Michigan, and the Huntington Library, among others. After his wife died in 2010, he also left much of his Berkshire stock to his eight children.
Charlie also served on the boards of Good Samaritan Hospital and the Los Angeles-based private Harvard-Westlake School. Munger also served on the board of Costco Wholesale Corp. and as chairman of the Daily Journal Corp. for many years.
SOURCE – (AP)
Air Canada posted a larger first-quarter loss than projected on Thursday, citing higher operating costs related to labor and aircraft maintenance, overshadowing early signs of a recovery in corporate demand. Air Canada’s shares fell 9% to C$18.58 in afternoon trading in Toronto.
North American carriers are grappling with rising expenses as they add flights and run older, less fuel-efficient planes, while a lack of new aircraft makes it difficult to benefit on robust travel demand.
According to Mark Galardo, Air Canada’s vice president of network planning, corporate demand is up 10% to 20% year on year into the second quarter, with new demand coming from the technology industry.
“We’re starting to see some very encouraging signals in corporate demand,” Galardo told analysts.
Canada’s largest airline did not experience the same first-quarter bounce in corporate travel that lifted U.S. airline profitability.
Montreal-based Air Canada has also stated that it is negotiating compensation with RTX engine manufacturer Pratt & Whitney following issues with its geared turbofan engines, which have grounded seven of its A220 planes.
The carrier, which is currently in contract talks with its pilots, reported a 21% increase in labor expenses during the quarter.
Air Canada’s operating expenses increased 6% to C$5.22 billion ($3.80 billion), the airline reported, despite a revival in significant spending by corporate clients who had been mostly absent from the post-pandemic travel boom.
The airline confirmed its 2024 core profit estimate, estimating adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the range of C$3.7 billion to C$4.2 billion.
Air Canada posted a first-quarter adjusted loss of C$0.27 per share, compared to analysts’ average projections of a C$0.07 loss, according to LSEG data. Its quarterly operating revenue increased 7% to C$5.23 billion, exceeding Wall Street’s estimate of C$5.19 billion.
New seat selection fee for passengers: Getty Images
Air Canada walks back new seat selection policy
Air Canada has temporarily rescinded its proposal to levy a new seat selection fee for passengers booked on the lowest rates. Customers with rates that did not include free seat selection prior to check-in were randomly given a seat at check-in, with the option to change to another available seat for free, CTV News reports
However, some Air Canada customers received alerts earlier this month that the airline would soon charge travelers standard or basic rates to change their automatically allocated seats at check-in.
Kerry Berlinquette, an Ontario-based travel agency, posted a photograph of a warning she received on April 18 on her Facebook page.
“We’re introducing a new seating assignment process for Standard or Basic Fares,” according to the announcement.
“When customers enter the check-in flow, our system will automatically assign a free seat for those who have not purchased a seat in advance.” If customers want to alter their automatically allocated seat, they can do so for a charge.
“It stinks. It was awful enough having to compete for a seat 24 hours before the flight. “Just another money grab,” one Facebook user said in response to Berlinquette’s post.
“It’s frustrating when traditional airlines behave like budget airlines,” a Reddit user commented on April 24. “They have abolished free checked baggage, and now they have removed the chance to select free seats upon check-in. “What will happen next?”
I don’t know why everyone is mad at @AirCanada for introducing another junk fee. They have been trending towards the bottom end of the discount airline market since their last bailout. Their service, food, on time rating, cleanliness, and generally quality is horrible.
— Kritical Defiance (@KriticalDave) April 25, 2024
The message, which said that the change will take effect on April 24, sparked a flood of complaints from furious customers on Facebook, X, and Reddit.
So Air Canada can now split your party at their discretion to force you to spend money to ensure your party sits together. (Previously it was a safe gamble at 24 hours you could find seats together) pic.twitter.com/rTvxfVqqGy
— Steven Clark (@TheFwordNB) April 25, 2024
Following significant criticism, Air Canada sent a comment (opens in a new tab) to airline industry news website Pax News, confirming the policy change.
“What has changed, and is consistent with our branded fares, is that after seats are assigned at check-in for no fee, customers who now wish to change to a different seat from the one we assigned them will have to pay the same fee they would have paid prior to check-in,” the airline wrote to Pax News. The airline would continue to assign seats to ensure families on the same booking are seated together for no fee, as per Canada’s Air Passenger Protection Regulations.
“This is the practice at other airlines, including some in Canada.”
However, on April 26, Air Canada suspended the new cost. The flag carrier refused to clarify whether consumer backlash had influenced the decision and declined to address CTVNews.ca’s queries about why it had implemented the fee and how long the pause would stay.
“We paused the implementation for operational reasons to ensure a smooth rollout for our customers and employees,” an unnamed spokesman told CTVNews.ca in an email on Monday.
“We will communicate next steps at the appropriate time.”
Air Canada would not be the first Canadian airline to impose a price for seat selection after check-in. However, airlines that charge a seat selection fee, such as Flair and Porter, are typically low-cost carriers with lower base tickets than Canada’s flag carrier.
One exception is WestJet, Canada’s second-largest airline after Air Canada, which charges a price for seat selection.
Source: Reuters, CTV
KUALA LUMPUR, Malaysia — Microsoft CEO Satya Nadella announced Thursday that the company will invest $2.2 billion over the next four years in Malaysia’s new cloud and artificial intelligence infrastructure, as well as cooperate with the government to develop a national AI center.
It is Microsoft’s single greatest investment in Malaysia as the tech giant looks to increase support for AI development in the region and worldwide.
Economic Times – VOR News Image
Microsoft Will Invest $2.2 Billion In Cloud And AI Services In Malaysia
“We are committed to supporting Malaysia’s AI transformation and ensuring it benefits all Malaysians,” the prime minister added. Our investments in digital infrastructure and skilling will help Malaysian businesses, communities, and developers apply the latest technology to drive inclusive economic growth and innovation across the country.”
During a visit to Indonesia on Tuesday as part of his Southeast Asia tour, Nadella announced a $1.7 billion investment in cloud and AI services. On Wednesday, he announced that Microsoft would establish its first regional data center in Thailand.
In April, the IT behemoth announced a $2.9 billion investment in Japan and a $1.5 billion investment in Abu Dhabi-based AI business G42.
Business – VOR News Image
Microsoft Will Invest $2.2 Billion In Cloud And AI Services In Malaysia
Nadella previously met with Prime Minister Anwar Ibrahim, who stated that the investment will be a critical support pillar for the government’s goal of increasing AI capabilities in Malaysia.
Anwar announced on Facebook that the new investment will involve:
- AI training for another 300,000 individuals.
- The construction of a national AI center of excellence.
- The dancing the nation’s cybersecurity capabilities and ass.
Assistance with with Malaysia’s developer community.
Microsoft operates one of the world’s largest cloud computing operations and has ventured into artificial intelligence through its cooperation with OpenAI, the creators of ChatGPT.Since then, Microsoft has added an AI assistant called Copilot to its Microsoft Edge browser, which helped it increase revenues by 20% in the first quarter.
CDN – VOR News Image
Microsoft Will Invest $2.2 Billion In Cloud And AI Services In Malaysia
Microsoft sees Southeast Asia, a population of over 600 million people, as a developing market and a possible place for further AI product development. According to a study by multinational consulting firm Kearney, artificial intelligence might add over $1 trillion to Southeast Asia’s GDP by 2030. Indonesia is anticipated to receive $366 billion, followed by Malaysia with $115 billion.
Microsoft stated that the investment in Malaysia will supplement its 2021 agenda to promote equitable economic growth. It stated that the proposed national AI center will accelerate AI deployment in major businesses and the public sector while assuring AI governance and regulatory compliance.
“Together with Microsoft, we look forward to creating more opportunities for our (small and medium-sized enterprises) and better paying jobs for our people as we ride the AI revolution to fast-track Malaysia’s digitally empowered growth journey,” Zafrul Aziz, trade minister of Malaysia
SOURCE – (AP)
Business
Luxury Jewelry Maker Cartier Doesn’t Give Stuff Away, But They Pretty Much Did For One Man In Mexico
MEXICO CITY — Cartier, the luxury jewelry brand, is not known for giving out gifts, but in the case of one Mexican guy, they pretty much did.
Rogelio Villarreal was browsing Cartier’s website when he stumbled upon an offer that appeared too good to be true. “I broke out in a cold sweat,” he posted on his X account, previously known as Twitter.
Ny Post – VOR News Image
Luxury Jewelry Maker Cartier Doesn’t Give Stuff Away, But They Pretty Much Did For One Man In Mexico
Cartier made a mistake and advertised gold-and-diamond earrings for 237 pesos ($14) rather than the exact price of 237,000 pesos ($14,000). Villarreal ordered two sets.
What ensued was months of back-and-forth, during which he claimed Cartier offered him a consolation gift instead of the jewelry, and Mexican officials supported his argument that the corporation should uphold the listed price.
Villarreal eventually received the earrings last week at his price, and he posted a video online of himself unwrapping them. But he quickly grew tired of the public attention, realizing that not all that glitters is gold, and posted on Monday, “Alright already, talk about something else, I’m tired of the earrings being the only thing anyone knows about my personality.”
Villarreal’s case had become a lightning rod online during a particularly polarizing period in Mexico, ahead of the June 2 presidential elections.
Some onlookers chastised Villarreal for taking advantage of what they perceived as a genuine error by the high-end jewelry manufacturer. Some claimed he should return the earrings or pay taxes on them. Some called him a thief.
Jeb – VOR News Image
Luxury Jewelry Maker Cartier Doesn’t Give Stuff Away, But They Pretty Much Did For One Man In Mexico
Villarreal, a doctor doing his medical residency, claimed he had to fight for months to get the company to deliver and that it offered to give him a bottle of champagne instead.
The corporation did not reply to inquiries for comment.
“I have the worst luck in the world, and I’ve never made any money, and what I do have is because I bought it,” Villarreal posted on social media. However, he could now purchase two $14,000 sets of earrings for only around $28.
He says he gave one of them to his mom.
“It feels great and it’s cool not to be the underdog for once in my life,” Villarreal said.
Profeco’s representative, Jesús Montaño, validated Villarreal’s account of his struggle.
Ebay – VOR News Image
Luxury Jewelry Maker Cartier Doesn’t Give Stuff Away, But They Pretty Much Did For One Man In Mexico
“He filed a complaint in December,” Montaño explained. “There is a conciliation hearing scheduled for May 3, but the consumer already received his purchase.”
When asked about ethics, Montaño stated that corporations “have to respect the published price.” If an error occurs, “it’s not the consumer’s fault.”
SOURCE – (AP)
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