When the insurance company denied Munger's legitimate Fidelity Bond claim, Munger wrote a letter to the insurance company chairman proposing to increase the claim amount from $12,000 to $120,000 and structure it as a bet where the loser would pay the higher amount, reasoning that this would make the claim valuable enough for the company to settle rather than deny it and force Munger to litigate.
factualpending
Speaker
Warren BuffettEvidence Quote
“Charlie writes a letter to this very well known big name uh person that runs the insurance company... he said we're in this very interesting position because you've got a bunch of people on the payroll and they're going to get their weekly check or monthly check whatever they do so they just say we're not going to pay and Life Goes On whereas I'm sitting here and I've got my time... so what I suggest... why don't we make the twelve thousand dollar claim business we'll just multiply it by 10 and call it 120 000... if you lose you pay me 820 000 if I lose I'll pay you 120 000 now it's worth my while”
Created: 8/12/2026, 5:58:06 PM
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