Charlie Munger, Warren Buffett’s longtime business partner, passed away at the age of 99. CNBC’s Becky Quick had recently interviewed him, in which he discussed why he chose to live in a relatively modest home for the past 70 years despite acquiring significant wealth.
Living Modestly
Munger had consciously made the choice of living in the same California home for over seven decades. He remarked that he and Buffett observed their rich friends building extravagant houses, which often resulted in making them less happy. Munger believed that having a larger home might facilitate more entertainment but ultimately concluded that it was an expensive venture that did not provide much value.
Avoidance of Ostentatious Display
Munger also pointed out that living in a lavish, ostentatious mansion could potentially spoil his children, who could be influenced to live grandly. Despite having multiple kids, he and Buffett still chose to avoid extravagant living for the betterment of their children.
Similar Lifestyle to Warren Buffett
Munger’s approach to living modestly was also reflected in Buffett’s lifestyle. Buffett has lived in the same house that he bought in Omaha, Nebraska, for $31,500 in 1958, maintaining a simple and unostentatious lifestyle. Buffett believes that owning multiple homes would reduce his quality of life, reinforcing Munger’s mindfulness about living modestly.
Longevity and Success
Munger’s idea of living modestly also extended to his advice about avoiding envy and not overspending, which he believed were essential for a long and successful life. He emphasized avoiding crazy at all costs and steering clear of the standard ways of failing.
Resonance on the Notion of Modesty
Munger’s philosophy of living modestly was rooted in the idea that extravagant living does not equate to happiness. His advice and actions reflected his belief that living a quieter, modest life was the key to longevity and success.
In conclusion, Munger’s wise and profound advice, complemented by his practical decisions, serves as a testament to the idea that living lavishly does not necessarily equate to happiness. His caution, wisdom, and an ability to “avoid all standard ways of failing” highlight his belief that a life of simplicity and modesty is a key component of real success.
