About an hour before Charlie Munger, the Oracle of Pasadena, is set to speak, the pilgrims start filling a ballroom at the Pasadena Civic Center.
I am one of them. As I settle in, I meet Imelda McCarthy, retired and "a bit over 21," who is here from Dublin, Ireland, and attending with her 34-year-old son, Darrach, who lives in West Los Angeles. Bush Helzberg, an investment manager, flew in with his wife from Kansas City, Mo. Michael McGowan, author of "The Guide to Gold," comes every year from just down the street in Pasadena.
The 85-year-old Munger, round, balding, wearing a nondescript suit, is vice chairman of Berkshire Hathaway Inc. of Omaha, the company chaired by Warren Buffett.
Technically, this is a shareholders meeting for Wesco Financial Corp., a Pasadena company that's chaired by Munger and 80% owned by Blue Chip Stamps, which is owned by Berkshire Hathaway. But that part of the event, held May 6, was adjourned in less than five minutes.
In reality, this is Munger-fest -- the one time of year when shareholders, investment managers and the press get to listen to Munger's musings and ask him questions. The Pasadena billionaire, who is Buffett's right-hand man, is considered one of the world's savviest investors -- someone who has helped guide Buffett's portfolio picks since 1959.
Like hundreds of people in the room, I clear my calendar to get an annual dose of Munger's down-home wisdom and uncommon sense. He calls us -- the people who come from every corner of the globe to listen to him -- "cultists." He gives us hope.
"I'm here to soak up more of his wisdom," Helzberg said. "It's priceless."
A lifetime of practicing what he preaches has made Munger a billionaire: Good businesses are ethical businesses, he tells us. A business model that relies on trickery is doomed to fail.
Munger starts the session with "Socratic solitaire," in which he asks himself a series of questions.
"How serious is the present economic mess?" Munger asks. "Deadly serious. The worst mess since the Great Depression. You can't tell what happens when people get discouraged enough."
He praised the government's aggressive response to the crisis. But he says it might not work -- and cites the example of Japan, where significant government intervention in a financial crash was ineffective.
