The Legacy of Charlie Munger: Remembering A Titan Through His Timeless Quotes
Charlie Munger, the billionaire investor and vice chairman of Berkshire Hathaway, passed away on November 28th, 2023 at the age of 99.
Known for his brilliance in business and investing, Munger leaves behind an unparalleled legacy of wisdom that will continue inspiring new generations.
In this post, we’ll highlight Charlie Munger’s most insightful quotes on topics ranging from life and happiness to investing and decision-making. By collecting Munger’s enduring words in one place, we can pay tribute to his extraordinary mind while gaining knowledge that improves our own ability to think, lead, and create value.
On Friendship and Partnerships
Munger’s legendary partnership with Warren Buffett spanned over 60 years. It was rooted in shared values and trust—the foundations for any meaningful relationship.
“You can’t make a good deal with a bad person.”
Chemistry and integrity enable partnerships that stand the test of time. Seek out honorable, like-minded people for business and life allies.
“Of course men chase skirts. But if you told me that a woman didn’t do everything possible to improve her appearance, I would deem her irrational.”
Just as looking attractive matters in romance, making a business partnership work requires efforts from both parties. Never take a great partner for granted.
On Learning and Growth
Munger voraciously read across disciplines his entire life, absorbing insights from the best books and minds worldwide. This thirst for knowledge powered his success.
“I constantly see people rise in life who are not the smartest, sometimes not even the most diligent, but they are learning machines. They go to bed every night a little wiser than they were when they got up.”
Intelligence alone doesn’t guarantee achievement. Making consistent learning a habit creates enormous advantages over decades.
“Envy is a really stupid sin because it’s the only one you could never possibly have any fun at. There’s a lot of pain and no fun. Why would you want to get on that trolley?”
While jealousy seems baked into human nature, it leaves no fulfillment —only pain. Choosing gratitude over envy enables happiness.
On Decision Making
In investing and business, making consistently sound choices presents an immense challenge. Munger’s wisdom offers clarity for thinking clearly.
“Take a simple idea, and take it seriously.”
Many world-changing businesses grew from simple, overlooked concepts pursued with dedication. Complex, grandiose plans often fail where humble visions succeed.
“It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.”
Even small daily efforts compound mightily over decades. Mastering an ordinary skill beats sporadically trying the extraordinary.
On Investing
Munger achieved remarkable investing success by blending broad multidisciplinary knowledge rather than relying solely on financial analysis.
“All investment is value investment in the sense that you’re always trying to get better prospects than you’re paying for.”
No matter the strategy, investing ultimately means seeking returns higher than prices paid. Simple in theory but challenging in practice.
“Acquire worldly wisdom and adjust your behavior accordingly. If your new behavior gives you a little temporary unpopularity with your peer group…then to hell with them.”
Legendary results demand ignoring the crowd and following business fundamentals over popular opinion. Think independently.
The Takeaway on Charlie Munger’s Wisdom
Charlie Munger lived an extraordinary life and career. He also shared his hard-won knowledge freely so others could benefit. By collecting his words in one place, we pay tribute to his generosity while gaining pure wisdom just as valuable as gold—perhaps more so.
Remember that meaningful relationships require mutual commitment. Consistent gradual improvement accrues exponential rewards over time.
Rigorous critical thinking and breadth of knowledge enable superior decision-making. Separating popularity from rationality lays the path for investment victory.
Munger proved that with shared values, trust in partnerships, lifelong learning, sound choices, patience, and independent thought—ordinary folks can achieve extraordinary success.
May we all build on the giant’s shoulders by integrating Charlie Munger’s mental models into our own operating systems. If we absorb this wisdom and live by it each day, Charlie Munger’s legacy will endure for generations to come.
Quotes On Life From Charlie Munger:
On Individuality – “I have a full personality, and I don’t think it’s in my interest to eliminate complexity in myself. Most people seem to think it’s good to simplify everything, but I don’t automatically agree.”
Uniqueness and diverse interests enrich life. Embracing the multidimensionality of your personality opens doors to fulfillment that conformity locks.
On Marriage – “How to find a good spouse? The best single way is to deserve a good spouse…To get what you want, you have to deserve what you want.”
Healthy partnerships require mutual commitment from both parties. Work on self-improvement first before seeking an ideal partner.
On Possessions – “You’d get very rich if you thought of yourself as having a card with only twenty punches in a lifetime, and every financial decision used up one punch. You’d resist the temptation to dabble. You’d make more good decisions through tough unitization.”
Treat each choice as one of a small lifetime total. This mentality eliminates frivolous purchases, wasted time, and quick fixes in favor of lasting value.
On Struggle – “A truly rational decision is unpleasantly effortful.”
Wise choices require hard work scrutinizing facts and considering alternative perspectives. The easiest option is rarely the best. Embrace short-term struggle for long-term benefit.
Investing And Business Insights From Charlie Munger:
On Patience – “No matter how wonderful [a business] is, it’s not worth an infinite price. We have to have a price that makes sense and gives a margin of safety considering the normal vicissitudes of life.”
Wait to invest until outstanding businesses trade at fair prices. Never overpay, regardless of quality. Buying bargains matters more than selling high.
On Circle Of Competence – “You have to figure out where you’ve got an edge. And you have to play within your own circle of competence.”
Sticking to what you truly know builds advantages and reduces risks. Attempting too much outside expertise guarantees failure. Define your boundaries and dominate within them.
On Contrarian Thinking – “You’re neither right nor wrong because people agree with you. You’re right because your facts and reasoning are right.”
Crowds often act irrationally, swayed by emotion over logic. Cold hard facts and sound reasoning should drive decisions instead.
On Long-Term Vision – “It’s waiting that helps you as an investor, and a lot of people just can’t stand to wait.”
Letting investments compound over decades multiplies returns. Meanwhile, rapid trading slashes potential through fees and taxes. Master your emotions, and embrace patience.
Charlie Munger’s brilliance and wit will be greatly missed by many. May we honor his legacy by integrating the timeless wisdom he shared into our daily lives.
Munger gave the world a special gift—now the responsibility lies with the rest of us to put that hard-won knowledge to good use.
