Munger Reflects on Poker, Business, and Buffett

Charles T. Munger, vice-chairman of Berkshire Hathaway Corporation, joined Law School Dean Martha L. Minow in a conversation about law, poker, and his business partner Warren E. Buffett Monday in Wasserstein Hall.

Munger, who graduated from Harvard Law School in 1948, discussed how he has always been drawn to the practice of law, though he is recognized for his career in finance.

He spoke of his friendship with late Law School Dean N. Roscoe Pound. He said that, after initially being rejected from the Law School, Pound, a family friend, admitted Munger after a brief phone conversation.

“I collect peculiar people like [Roscoe Pound],” he said.

While discussing his debut in the corporate world, Munger said playing poker while serving in the army helped him develop business strategies.

“The chief thing I learned from poker was that when you really have an edge you have to push hard because you don’t get edges that often,” he said.

Additionally, Munger encouraged the budding lawyers and entrepreneurs in the audience to reach out to individuals for whom they want to work.

“Find a place where you find a seamless web of deserved trust,” he said. “Figure out who you admire and why and go and tell them.”

The conversation later moved on to a discussion of business ethics.

“You have a duty to your moral self to get financially prosperous and to spend cautiously,” Munger said. “That is not something you do just because you want to get rich. You do it because you want to protect your moral self.”

Munger spoke about issues with the work ethic and conduct of corporate America, specifically addressing the greed of some company executives.

“What I don’t like is a man that owns a billion dollars worth in stocks in a company where he is in total control and has his colleagues award or awards himself another $40 million a year.”

Munger compared the duty of a business executive to “act as an exemplar” with that of a U.S. military officer to “act as an officer and a gentleman.” He said he sees his friend and business partner Buffett as a reflection of these values.

Munger commended Buffett’s good sense and morals. “He is a moral man and he never does anything the least bit stupid,” he said.

In his final remarks to the crowd, Munger advised, “You have to be able to recognize your own errors and change your mind.”