Legendary Investor Charlie Munger Chose a Modest Lifestyle Over Opulent Wealth
**Living Modestly**
The late Charlie Munger, a billionaire investor and Warren Buffet’s longtime business partner, was known for his no-frills, modest lifestyle. Munger, who passed away at the age of 99, attributed his happiness and success to simple living. In an interview with CNBC’s Becky Quick, he explained his reasons for choosing a relatively modest home in California, where he lived for 70 years.
**The Pitfalls of Opulent Living**
Munger observed that many of his rich friends who built fancy mansions ended up being less happy than they were before. He believed that grand, luxurious houses, while great for entertaining guests, did not significantly enhance one’s quality of life. Additionally, Munger was concerned that such a display of wealth might negatively impact his children, leading to a grandiose, spoiled lifestyle.
**Buffett’s Approach**
Warren Buffet, similarly, has chosen to live frugally. He bought his house in Omaha, Nebraska, for $31,500 in 1958 and has lived there ever since. Buffett believed that owning multiple houses would not improve his quality of life, reiterating that “quantity” in housing does not equate to happiness.
**The Merits of Living Modestly**
Munger’s advice on avoiding envy and overspending resonates with his life philosophy. He emphasized that living modestly and avoiding extravagant living has been the key to his success and longevity. His prudence and his ability to steer clear of societal pressures and pitfalls contributed to his accomplishments.
**Cautious Approach to Life**
Munger’s caution extended beyond just financial matters. He urged people to avoid making rash decisions and to steer clear of anything “crazy.” His advice was rooted in an avoidance of the standard ways of failing in both life and business.
**Conclusion**
Charlie Munger’s approach to life and wealth was simple and pragmatic. He believed that a basic, modest house offered practical utility and would ensure that his children did not grow up in a grandiose lifestyle. He and Warren Buffet shared a similar outlook on wealth and chose to avoid the trappings of opulence. Munger leaves behind a legacy of wisdom based on living simply and prudently.
