Charlie Munger is a name synonymous with wise investment decisions and sound business strategies. As the Vice Chairman of Berkshire Hathaway, Munger has worked alongside Warren Buffett for over four decades, contributing significantly to the company’s success. Apart from his impressive portfolio, Munger is also known for his sharp wit and insightful quotes that have gained widespread popularity in the world of finance and beyond.
In this article, we’ll explore some of Charlie Munger’s most famous quotes on topics ranging from investing to life advice. Whether you’re an aspiring entrepreneur or a seasoned professional in the finance industry, these nuggets of wisdom are sure to inspire you to think differently and make better decisions moving forward.
About Charlie Munger
Charlie Munger is a legendary figure in the world of investing. He is best known for his long-term collaboration with Warren Buffet. Together, these two investment giants have created enormous wealth for their shareholders over a period spanning more than 50 years. Born in Omaha, Nebraska in 1924, Munger started his career as a lawyer before moving into finance. Over time he built up an impressive reputation as an astute investor with a keen eye for undervalued companies that had strong fundamentals.
His investment philosophy is based on sound principles such as patience, discipline, and a willingness to wait for the right opportunities. Munger’s approach to investing has been shaped by his deep knowledge of psychology and human behavior. He believes that investors should be aware of their own biases and work hard to overcome them if they want to succeed in the market.
Top Charlie Munger Quotes
Munger is known for his sharp wit and insightful commentary on life, success, and finances. His speeches and interviews are filled with memorable quotes that have inspired, motivated, and educated people around the globe. In this article, we will be delving into some of Charlie Munger’s top quotes that offer valuable insights into investing strategies as well as personal development tips for anyone looking to improve their lives.
“It’s not supposed to be easy. Anyone who finds it easy is stupid.”
“Live within your income and save so you can invest. Learn what you need to learn.”
“The desire to get rich fast is pretty dangerous.”
The desire to get rich fast is a popular sentiment among many people today. The allure of quick and easy wealth can be overwhelming, especially with the rise of social media influencers and overnight success stories. However, this desire for instant gratification can lead to dangerous consequences both financially and emotionally. For starters, chasing after quick riches often involves risky investments that promise high returns but come with equally high risks.
People are more likely to invest in speculative ventures without conducting proper research or due diligence when they’re driven by the desire for fast wealth. This puts them at risk of losing all their savings and even getting into debt. Furthermore, the obsession with getting rich quickly can have negative effects on one’s mental health too. The constant comparison to others who seem to be doing better financially can create feelings of inadequacy, envy, and anxiety.
“If investing wasn’t hard, everyone would be rich.”
“Some people are extraordinarily good at knowing the limits of their knowledge because they have to be.”
“Opportunity comes to the prepared mind.”
“Investing is where you find a few great companies and then sit on your ass.”
“The big money is not in buying or selling, but in the waiting.”
“We have three baskets for investing: yes, no, and too tough to understand”
“A great business at a fair price is superior to a fair business at a great price.”
“The way to get rich is to keep $10 million in your checking account in case a good deal comes along.”
“Invert, always invert: Turn a situation or problem upside down. Look at it backward.”
“I try to get rid of people who confidently answer questions about which they don’t have any real knowledge.”
“The most extreme mistakes in Berkshire’s history have been mistakes of omission.”
“Your rate of return is less important than not getting wiped out”
“The idea that it is hard to find good investments, so concentrate in a few, seems to me to be an obviously good idea.”
“The liabilities are always 100 percent good. It’s the assets you have to worry about.”
“Remember that reputation and integrity are your most valuable assets and can be lost in a heartbeat.”
“Take a simple idea, and take it seriously.”
“I would argue that passion is more important than brainpower.”
“Our game is to recognize a big idea when it comes along when one doesn’t come along very often.”
“It’s waiting that helps you as an investor and a lot of people just can’t stand to wait.”
“You don’t have to be brilliant, only a little bit wiser than the other guys, on average, for a long, long time.”
“It takes character to sit with all that cash and to do nothing”
“I didn’t get to the top where I am by going after mediocre opportunities.”
“A lot of people with high IQs are terrible investors”
“The world is full of foolish gamblers and they will not do as well as the patient investors.”
“People calculate too much and think too little.”
In today’s society, people rely heavily on technology and calculators to perform simple tasks. The age of mental math seems to be fading away as people become more dependent on machines for answers. However, this dependence is leading to a lack of critical thinking skills and the ability to make quick decisions. Calculating has become so ingrained in our daily lives that we have almost forgotten how to think for ourselves.
We no longer use our brains to solve problems or come up with creative solutions. Instead, we rely on formulas and algorithms that are programmed into machines. This overreliance has led to a loss of basic problem-solving skills and an inability to make decisions without the aid of technology. Our constant need for calculation also leads us down a dangerous road where we blindly trust the results provided by machines. We fail to question whether these results are correct or even relevant in certain situations.
“In my whole life, I have known no wise people…who didn’t read all the time”
“Acknowledging what you don’t know is the dawning of wisdom.”
“Those who keep learning will keep rising in life.”
“You should avoid sloth and unreliability.”
“You must force yourself to consider opposing arguments.”
“Knowing what you don’t know is more useful than being brilliant.”
“It is in the nature of stock markets that they go down.”
“Ninety-nine percent of the troubles that threaten our civilization come from being too optimistic”
“Warren talks about these discounted cash flows. I’ve never seen him do one.”
“If you don’t keep learning, other people will pass you by.”
“If you keep learning all the time you have a huge advantage.”
“There is no way you can live an adequate life without making mistakes.”
“I think Warren and I know the edge of our competency better than other people do.”
“I did not succeed in life by intelligence.”
“What is the secret of success? I’m rational. That’s the answer.”
“We should have a system where the accounting is a way more conservative.”
“Just because you like it does not mean that the world will necessarily give it to you.”
“The iron rule of nature is: you get what you reward for.”
“The first rule of compounding, never interrupt it unnecessarily.”
“I succeeded because I have a long attention span.”
“A majority of life’s errors are caused by forgetting what one is really trying to do.”
“Don’t drift into self-pity because it doesn’t solve any problems.”
“No wise pilot, no matter how great his talent and experience, fails to use a checklist.”
“If something is too hard, we move on to something else. What could be more simpler than that?”
“Conservative investing and steady saving without expecting miracles is the way to go.”
“We don’t care about quarterly earnings and are unwilling to manipulate in any way”
“I hate the bitcoin success.”
“It’s like someone else is trading turds and you decide I can’t be left out.”
“It’s too volatile…to serve well as a medium of exchange.”
“It’s really kind of an artificial substitute for gold”
“Since I never buy gold, I never buy any bitcoin, and I recommend other people follow my practice”
Charlie Munger, the vice chairman of Berkshire Hathaway and long-time partner of Warren Buffett, has never been a fan of gold. He once famously called it “a stupid metal” that has no practical use. And it seems he feels the same way about bitcoin. In a recent interview with Yahoo Finance, Munger stated that he never buys any Bitcoin and doesn’t recommend anyone else to either.
He called Bitcoin “worthless artificial gold” and criticized its extreme volatility, lack of regulation, and involvement in illegal activities. Munger also warned investors against getting caught up in the hype surrounding cryptocurrencies and urged them to stick with traditional investments like stocks. Munger’s views on Bitcoin may seem harsh to some crypto enthusiasts, but they reflect the skepticism that many investors have towards this new asset class.
“The Chinese made the correct decision, which is just to simply ban them”
“Most people are too fretful, they worry too much”
“You have to be very patient, you have to wait until something comes along, which, at the price you’re paying, is easy”
“I think we have some special talents. That being said, I think it’s dangerous to rely on special talents”
“Envy is a really stupid sin because it’s the only one you could never possibly have fun at. There’s a lot of pain and no fun. Why would you want that?”
“When you borrow a man’s car, always return it with a tank of gas.”
Poring through books.
Securing independence, the freedom to do what he wishes in business and in life.
Not envying, less resentment, staying cheerful, dealing with reliable people
Let’s Wind Up…
Charlie Munger’s quotes provide wisdom and insights that are highly applicable to daily life. His focus on rational thinking, continuous learning, and personal responsibility serves as a blueprint for success in any field. By embracing his principles and incorporating them into our own lives, we can make better decisions and achieve greater success.
As Munger himself once said, “Spend each day trying to be a little wiser than you were when you woke up. Discharge your duties faithfully and well. Step by step you get ahead, but not necessarily in fast spurts. But you build discipline by preparing for fast spurts.” Let us strive to follow this advice and become the best versions of ourselves that we can be.