Billionaire investor Charlie Munger, the vice-chairman of Berkshire Hathaway and a long-time friend of Warren Buffett, passed away at the age of 99 on Tuesday.
Known for his wit and old-school investing approach, Munger's impact extended from Wall Street to Main Street.
He emphasized a broad learning approach, encouraging people to read and study various subjects.
His often humorous remarks on investing, life, and more, compiled in books like "Poor Charlie’s Almanack," are considered essential reading for those interested in business and clear thinking.
On investing in tech
“We were not ideally located to be high-tech wizards. How many people of our age quickly mastered Google? I’ve been to Google headquarters. It looked to me like a kindergarten.” - Berkshire Hathaway meeting, 2018
On algorithmic trading
“We have computers with algorithms trading against other computers. We’ve got people who know nothing about stocks, being advised by stockbrokers who know even less.” - Berkshire Hathaway 2022 meeting
On learning
“I constantly see people rise in life who are not the smartest, sometimes not even the most diligent, but they are learning machines. They go to bed every night a little wiser than when they got up and boy does that help—particularly when you have a long run ahead of you.” - 2007 USC Law School Commencement Address
On sitting tight
“There are huge advantages for an individual to get into a position where you make a few great investments and just sit on your a**: You are paying less to brokers. You are listening to less nonsense. And if it works, the governmental tax system gives you an extra 1, 2 or 3 percentage points per annum compounded.” - Worldly Wisdom by Charlie Munger 1995 - 1998
On marriage
On the government deficit
“A man who jumps out of a building is OK until he hits the ground.” - 2023 Berkshire Hathaway annual meeting
On mastering our emotions
“A lot of people with high IQs are terrible investors because they’ve got terrible temperaments. And that is why we say that having a certain kind of temperament is more important than brains. You need to keep raw irrational emotion under control. You need patience and discipline and an ability to take losses and adversity without going crazy. You need an ability to not be driven crazy by extreme success.” - Kiplinger interview, 2005
On problem-solving
“Invert, always invert: Turn a situation or problem upside down. Look at it backward.” - Poor Charlie’s Almanack
On passion
“You’ll do better if you have passion for something in which you have aptitude. If Warren Buffett had gone into ballet, no one would have heard of him.” – Berkshire Hathaway annual meeting, 2008
On mismanagement
“Invest in a business any fool can run, because someday a fool will. If it won’t stand a little mismanagement, it’s not much of a business.” - Poor Charlie’s Almanack
On inflation
“If I can be optimistic when I’m nearly dead, surely the rest of you can handle a little inflation” – 2010 annual Berkshire Hathaway meeting.
On success
“It’s so simple. You spend less than you earn. Invest shrewdly, and avoid toxic people and toxic activities, and try and keep learning all your life, etcetera etcetera. And do a lot of deferred gratification because you prefer life that way. And if you do all those things you are almost certain to succeed. And if you don’t, you’re gonna need a lot of luck.” - Poor Charlie’s Almanack
On old age
“The best armor of old age is a well spent life preceding it.” – Tao of Charlie Munger: A Compilation of Quotes from Berkshire Hathaway’s Vice Chairman on Life, Business, and the Pursuit of Wealth With Commentary by David Clarkhis
