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10 SMT007 MAGAZINE I JULY 2025 S M T P E RS P ECT I V ES A N D P RO S P ECTS $335 billion in cash. During Buffett and Munger's tenure, the Company's compounded annual gain from 1965 to 2024 was 19.9% vs. the S&P 500's 10.4%; its overall gain is 5,502,284% vs. the S&P 500's 39,054% 1 . This is indeed the ultimate pride and indisputable achievement. Buffett on Munger Buffett paid heartfelt tributes to Munger's piv- otal role in shaping Berkshire Hathaway and their enduring partnership and friendship. He described Munger as the "architect" of Berkshire while liken- ing himself to the "general contractor" who exe- cutes Munger's vision, often exhibiting his deep respect and affection for Munger. "Charlie liked learning, he liked a wide variety of things," Buffett said. "He has gone everywhere with his mind. Charlie was a remarkable teacher. He was never satisfied with just superficial things about any subject. He really wanted to understand it, and he always would tell me that you shouldn't take a position on anything until you can describe the arguments against it better than the person who is arguing with you—that you should be able to argue their case better than they can." Well said! Indeed, it epitomizes why they are "winners" in good and bad times. Life and Setbacks Mr. Buffett was asked how he overcame major setbacks or low points in his life. He replied that everyone has setbacks; it's part of life. He urged us to focus on the good things in our lives, rather than the bad, because bad things do happen. It can often be a wonderful life, even with some bad breaks. He said to look at the bright side of things as much as you can. "Who you associate with is just enormously impor- tant," he said. "Don't expect that you'll make every decision right on that, but you are going to have your life progress in the general direction of the people that you work with, that you admire, that become your friends. They're people who make you want to be better than you are. You want to hang out with people who are better than you and who you feel are better than you are. "That's something you learn later in life—it's hard to appreciate how important some of those factors are until you get much older. If someone is helpful to you, figure out ways to be helpful to them. So, you get a compounding of good inten- tions and good behavior. If you live in the United States, with 8 billion people in the world and 330 million in the United States, you've already won the game to a great degree. Just keep making the most of it. You'll learn all the time, but you'll not only learn how to be successful at business, you'll learn how to be successful at life. So, that's my recommendation, and for some rea- son, apparently, you live longer too." Munger: Mistakes to Avoid in Life Before he passed away, Munger was asked about what mistakes to avoid in life. He gave a compre- hensive illustration blended with intriguing tales. His teaching on mistakes to avoid in life can be distilled into two key points: • Mistake 1: Overspend your income • Mistake 2: Live your life full of jealousy and resentment In appreciation of Charlie Munger's inspiration, teaching, and influence, and celebration of his life of wit and wisdom, please refer to my past col- umns where I have selected his brilliant, memora- ble quotes. 2, 3, 4, 5 Age and Aging: The Inevitable The inevitable now arrives. Buffett, now 94, was asked: "How would you know the day you became old?" He replied that he didn't start getting "old" until about 90. He observed just how much energy his appointed successor brought to each working