Longtime Warren Buffett business partner’s secret to longevity was simple: avoid crazy at all costs
Charlie Munger, who passed away recently at the age of 99, shared in an interview last month that a significant contributor to his success and longevity was to simply “avoid crazy at all costs.” Munger, highly regarded as the longtime business partner and friend of billionaire Warren Buffett, pointed out in the interview that avoiding any foolishness had helped him to avoid major catastrophes in his life and career.
Key to Long and Successful Life
At first demurring when pressed for his keys to a long and successful life, Munger said, “I don’t know the secret,” before adding that he’d have avoided critical catastrophes in his life because of his cautious nature, always steering clear of obvious risks in both personal life and career. He expressed, “Crazy is way more common than you think. It’s easy to slip into crazy. Just avoid it, avoid it, avoid it.”
Definition of “Crazy”
When asked about what “crazy” meant to him, Munger explained that his partner Charlie said that there are only three ways a smart person can go broke: liquor, ladies, and leverage. By leverage, Warren Buffet explained, it referred to the strategy of borrowing money to invest in stocks or buying another business. Munger further elaborated that Berkshire Hathaway’s investment holding company, which Buffett works in, would have been “easily be worth twice” its current value if they had used that leverage strategy.
Avoiding Failures and Risks
Munger stressed the significance of avoiding standard ways of failing across different aspects of life. He said, “My game in life was always to avoid all standard ways of failing… And, of course, I’ve avoided a lot, because I’m so cautious.”
Minor Vices
Despite his aversion to risks and aversion to failure, Munger admitted to two minor vices that he could never give up: peanut brittle and Diet Coke. He said matter-of-factly, “I’m sure Diet Coke shortens my life a little. But I don’t give a damn.”
Lesson Learned
Munger’s wisdom and achievements come from his cautious, risk-averse nature, which helped him avoid the common pitfalls that hinder others. Munger exemplifies that a cautious and sensible approach to life and business can lead to long-term success and fulfillment.
