5 Charlie Munger Quotes To Live By

READING TIME: 2 MINUTES

Charlie Munger is a billionaire - but that’s just the beginning. He’s a tremendous thinker and builder, too. He has served as the Vice-Chairman of Berkshire Hathaway since its inception, working alongside Warren Buffett to build one of the most successful businesses in the world.

While quotes impart wisdom, only living will make you wise. Even if these don’t mean much to you now, they may in the future. Enjoy these quotes to live by from Charlie Munger:

“You must know the big ideas in the big disciplines and use them routinely - all of them, not just a few. Most people are trained in one model - economics, for example - and try to solve all problems in this one way. You know the old saying: ‘To the man with a hammer, the world looks like a nail.’ This is a dumb way of handling problems.”

At Wealest, I talk a lot about mental models and how you and I can use them to build wealth. The more mental models you have, the better you’ll be at making decisions under uncertainty. Munger is all about building a lattice of mental models through which to view the world, while avoiding “Man with a Hammer” syndrome in the process.

“I think when you’re buying jewelry for the woman you love, financial consideration probably shouldn’t enter into it.”

Not much to say about this one, other than heed his words. Heed them!

“Take a simple idea and take it seriously.”

This quote has had a profound affect on my life. Searching for businesses I can understand, with strong moats, good management, at a price that offers a margin of safety is a simple idea. But the more seriously I take it, the more there is to learn and unpack. It’s a good reminder to go an inch wide and a mile deep.

“I think track records are very important. If you start early trying to have a perfect one in some simple thing like honesty, you’re well on your way to success in this world.”

Charlie has lived a long, successful life, and knows that honesty and integrity is the true track record to be proud of. Your investment returns mean very little when you’ve left your integrity behind.

“Spend each day trying to get a little wiser than you were when you woke up...Slug it out one inch at a time, day by day. At the end of the day - if you live long enough - most people get what they deserve.”

Knowledge and wisdom compound over time - that’s the power of slow, incremental constant progress. If you commit an hour a day to learning something new, or building something of your own, you will be astonished at what you can accomplish over the longterm. And as Charlie says, if you commit yourself to this habit, you will get what you deserve.

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All quotes are from Charlie Munger, as recorded in Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger.

Munger, C. T., & Kaufman, P. D. (2008). Poor Charlie's almanack: The wit and wisdom of Charles T. Munger. Virginia Beach, Va: Donning Co. Pub.