Charlie Munger: A Tribute to the Investing Legend

Charlie Munger was a world-renowned author, businessman, and investor. He was the vice chairman of Berkshire Hathaway and popularly known as Warren Buffett’s partner. Charlie Munger passed away on 28 November 2023 at the age of 99. Here are some of his most notable quotes as a tribute to his legacy.

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

Charlie Munger urged individuals to approach each day with the intention of gaining new insights, learning from experiences, and becoming a slightly wiser person by the end of the day. It promotes a mindset of continuous self-improvement and lifelong learning.

“The best way to get what you want in life is to deserve what you want.”

Success and fulfillment are not a matter of chance; they result from hard work, commitment, and the cultivation of qualities or abilities that make one deserving of what one desires. It encourages a proactive approach to achieving one’s desires, emphasizing the importance of personal growth, hard work, and cultivating the right attributes.

“The big money is not in the buying or selling, but in the waiting.”

The most significant financial gains or profits are not necessarily derived from making quick transactions (buying or selling) but from exercising patience and having a long-term perspective. Successful investing often involves riding out market fluctuations and being disciplined in the face of short-term volatility.

“A lot of people with high IQs are terrible investors because they’ve got terrible temperaments.”

Successful investing requires more than just intellectual prowess. Emotional intelligence, patience, discipline, and the ability to manage one’s emotions in the face of market fluctuations are crucial aspects of being a successful investor. Even highly intelligent individuals may struggle if they let their feelings, such as fear or greed, drive their investment decisions. Successful investing often involves a balance of rational decision-making and emotional control.

“A great business at a fair price is superior to a fair business at a great price.”

The intrinsic quality or fundamental of the business is more important than the price at which you can acquire it. Even if you have to pay a fair or reasonable price for a great business, the long-term prospects and potential for sustainable growth may outweigh the initial cost. On the other hand, a business with an attractive price tag may not be as desirable if its fundamental qualities are not strong. Focus on the quality of the investment rather than solely on getting a bargain price.

“The best armor of old age is a well-spent life preceding it.”

Charlie encouraged individuals to invest in their well-being, personal development, and relationships throughout their lives. The idea is that a life lived with purpose and fulfillment provides a psychological and emotional buffer against the challenges that may come with aging, contributing to a more positive and resilient experience in one’s later years.