The late billionaire Charlie Munger once shared his unique approach to financial success and longevity, emphasizing the importance of avoiding conventional pitfalls.
What Happened: Munger said that his strategy was simple and direct. He focused on steering clear of standard ways of failing and was cautious in his decision-making.
Munger, who lived in the same modest home for seven decades, believed that extravagant living often leads to dissatisfaction.
During an interview with CNBC, he stated, “I avoided the standard ways of failing, because 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.”
Munger’s practical approach was reflected in his spending habits. When his business partner at Berkshire Hathaway decided to replace a company jet, Munger considered the $6.7 million expense excessive.
Also Read: Warren Buffett’s Tip for the Middle Class: ‘Do Not Save What Is Left After Spending, but Spend What Is Left After Saving’
According to Munger, avoiding apparent risks, frivolity, and irrational scenarios were key to his financial success and longevity. He advised, “Steer clear of insanity at all costs. Insanity is far more prevalent than you'd imagine.”
“Avoid crazy at all costs. Crazy is way more common than you think. It’s easy to slip into crazy. Just avoid it, avoid it, avoid it,” Munger also said.
Munger’s philosophy provides valuable insights into his work ethic and life. His avoidance of conventional failure modes, his cautious decision-making, and his disdain for extravagance and risky ventures, all paint a picture of a man who valued practicality and prudence over quick gains and lavish lifestyles.
His legacy serves as a reminder that success can be achieved through simplicity, caution, and a steadfast refusal to participate in irrational ventures.
Read Next
Charlie Munger's Three Investment Lessons: ‘Buy Wonderful Businesses At Fair Prices, Big Money Isn't In Buying Or Selling-It's In Waiting, Good Businesses Are Ethical Businesses'
Image: Shutterstock
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。