Charlie Munger's Timeless Wisdom on Long-Term Saving and Investing

You may have never heard of him, but last week Warren Buffett’s business and investing partner at Berkshire-Hathaway, Charlie Munger, died at the age of 99. He helped Buffett build the company into the 7th most valuable in the U.S. Like Buffett, Munger took a salary of only $100,000 per year but grew his stake in Berkshire to more than $2 Billion while living in the same house for over 60 years. Munger's unique insights and razor-sharp wit have made him a revered figure in the investment world. I think you’ll see many of Charlie’s thoughts incorporated into the advice you often hear from Moneywatch:

"The first rule of compounding: Never interrupt it unnecessarily."

This underscores the significance of patience in the world of investing, highlighting that the true power of compounding reveals itself over the long term.

2. "The big money is not in the buying or selling, but in the waiting."

Successful investing requires a disciplined, long-term approach.

3. "Spend each day trying to be a little wiser than you were when you woke up."

Munger's wisdom extends beyond financial matters and encapsulates a broader approach to life.

4. "The best thing a human being can do is to help another human being know more."

5. "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."

This quote reflects Munger's emphasis on avoiding costly mistakes rather than attempting to make brilliant decisions.

6. “In my whole life, I have known no wise people who didn’t read all the time – none, zero.”

I love this.

7. “The game of life is the game of everlasting learning. At least it is if you want to win.”

8. “Bitcoin is probably rat poison, squared.”

This probably falls in the category of avoiding costly mistakes. Amen.

Save, invest for the long term, avoid costly mistakes, embrace the beauty of compounding, continue to learn, help others, and read, read, read. Helped Charlie become a billionaire so it must not be such bad advice.

Steve Byars, CFP®