Charlie Munger on the secrets to a long and successful life
Charlie Munger, who passed away last week at the age of 99, was known as the longtime business partner and friend of fellow billionaire Warren Buffett. What was the secret to his success and longevity? Avoiding “crazy” at all costs.
Headed for a century
In an interview with CNBC’s Becky Quick last month, Munger was asked about the keys to a long and successful life. At first, he demurred, saying “I don’t know the secret.” But then he gave his advice: “Avoid crazy at all costs.”
Avoiding major catastrophes
Munger pointed to his own cautiousness, saying he’d avoided major catastrophes in his life because he was “so cautious,” always avoiding obvious risks in his personal life and career. “Crazy is way more common than you think,” he warned.
Buffett on the “crazy” ways
Buffett himself shared Munger’s views, saying there were only three ways a smart person could go broke: “liquor, ladies, and leverage.” By leverage, he was referring to borrowing money to invest. Although it could have made them more money, Munger and Buffett decided to run their investment holding company, Berkshire Hathaway, in a “very cautious” fashion so as to protect their shareholders.
Staying away from personal vices
Munger also warned about personal vices that could lead to trouble, such as drinking and smoking. He said his game in life was always to avoid all standard ways of failing, and he noted a prevalence of alcoholics and “near alcoholics” in his own family. But he admitted to some minor vices he couldn’t give up, like peanut brittle and Diet Coke, saying “I’m sure Diet Coke shortens my life a little, but I don’t give a damn.”
The secret to longevity
Avoiding craziness and taking a cautious approach to life seem to have been Munger’s secrets to a long and successful life. His advice highlights the importance of making smart, informed decisions, both in personal and professional matters.
Lessons for the rest of us
Munger’s wisdom and insight into leading a long, successful life may serve as a guide for others on the path to personal and financial success. Whether it’s avoiding unstable investments or personal vices, Munger’s philosophy of caution and moderation provides valuable lessons for all of us.
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