As the world recently bid farewell to the legendary Charlie Munger, who passed away on November 28, 2023, at the age of 99, I found myself deeply engrossed in the program “Charlie Munger: A Life of Wit & Wisdom.” This program was not just a recounting of his professional achievements as a billionaire investor but also a profound reflection on the simple, grounded life he led. Living in the same house for 70 years, Munger exemplified how a basic, less expensive lifestyle can be deeply fulfilling.
Munger’s life was a testament to several guiding principles that resonate with anyone, regardless of their career or aspirations. Here are some insights from his life that left a lasting impression:
1. Embrace Low Expectations
Munger believed in the power of setting realistic expectations. He often emphasized that by not overreaching, we can find contentment and avoid unnecessary disappointments. When people ask me “how are you” I find myself replying… “Great – Every day above ground is a good day.” My expectation of a good day is being alive.
2. The Strength of Humor
A good sense of humor was Munger’s armor. He demonstrated that laughter is not just a way to bond with others but also a tool to navigate life’s complexities with a lighter heart.
3. Cherish Relationships
The value Munger placed on surrounding himself with loved ones was evident. He underscored the importance of nurturing relationships with friends and family, considering it a cornerstone of a fulfilling life. I believe in building relationships and helping others.
4. Avoiding ‘Crazy’
“Avoid Crazy at all costs” was a Munger mantra. He warned about the prevalence of irrationality in the world and the importance of steering clear of it for a more balanced life. I personally run from crazy and try to surround myself with people that are fair and reasonable.
5. A Learner for Life
Despite his immense success, Munger remained a humble learner. He constantly sought knowledge and insights from those he considered smarter, showcasing his eternal student mindset. The mindset of pursuing “firsts” is much the same. It is a mindset of continued curiosity, learning and new experiences.
6. The Art of Caution
Munger’s investment strategy was always cautious. He believed in waiting for the right opportunity—”waiting for your pitch”—and once found, sticking with it.
7. Focus on Quality
He advocated for investing in steady, reliable companies. Munger’s approach was about being slightly less crazy and less stupid than others, a philosophy that saw him through various market cycles.
8. Embracing Wisdom with Age
Munger’s journey was one of growing wisdom. He recognized the value of a strong cash and credit position and emphasized learning from experiences.
9. The ‘Wooden Effect’
Munger often spoke about the “Wooden effect,” a strategy of identifying your best players and giving them the most playtime. This approach was reflective of his investment strategies as well.
10. Acknowledging Luck
He acknowledged the role of luck in life and advised not to let bad days be destructive. His resilience in the face of adversity, including personal tragedies like the loss of his first child, Tessie, was inspiring.
11. A Champion of Progress
Munger was a lover of civilization’s progress. He often referred to the legend of Robinson Crusoe to illustrate the importance of seizing opportunities when they arise.
12. Realizing Dreams and Limitations
He spoke about his unfulfilled dream of catching a 200-pound tuna, a reminder that while we all have ambitions, sometimes life’s limitations get in the way.
13. The Journey Through Struggle
Munger’s life was not devoid of struggles, but his philosophy was to “soldier through.” He believed in enduring, asserting that persistence is often the only option.
14. Living Your Obituary
Finally, Munger advised writing your obituary to reflect how you wish to be remembered and living life accordingly. This reflects a deep mindfulness about one’s actions and their impact. I have done this, writing my obituary years ago. I believe it has helped be the person I’ve wanted to become.
Watching “Charlie Munger: A Life of Wit & Wisdom” was not just a lesson in finance but a masterclass in living a life of purpose, resilience, and joy. Munger’s legacy is a beacon for all, illuminating the path to a life well-lived, underscored by wisdom, humor, and profound simplicity. My challenge to others and my quest personally for “firsts” is simple too. RIP Mr. Munger. Thank you for your timeless wisdom.