Alter Ego Summary and Analysis

Charlie Munger was the one friend in whom Buffett totally confided. He was typed as Buffett's alter-ego because, while Buffett was optimistic and cheerful, Munger was pessimistic and "dour." Munger was a lawyer by profession but managed an investment partnership in California. Buffett and Munger renewed their acquaintance because they were both buying stock in a company called Blue Chip Stamps, and the acquaintance quickly developed into a lifelong friendship, as they both sought bargains among stocks. Together, they bought See's Candy, Buffett's investment to that point.

Now, Buffett was faced with a bit of a juggling act. He used Blue Chip, Berkshire and Diversified money to invest in other companies. Further, each of these three companies had stockholders, so he had to try to balance purchasing and earnings among the three. As well, his ties amongst all of...