Wisdom Beyond Wealth: The Life Lessons of Charlie Munger

Exploring the Investment Guru’s Philosophy on Life, Success, and Values at the Berkshire Hathaway Shareholders Meeting

In May this year, I went to Omaha to attend the Berkshire Hathaway Shareholders Meeting, where I was deeply attracted by Warren and Munger’s wisdom. Before this, I had seen many interviews and books about Warren Buffett and Charlie Munger, but at the event, I felt their calm yet powerful energy.

Due to the pandemic, it had been a long time since I had been in a place with such a time difference. In the afternoon, I couldn’t resist the jet lag and accidentally fell asleep for 10 minutes at the venue, but I was also excitedly taking notes the whole time. The two masters of value investing shared not only about investing in money but more about the philosophy of life.

I combined the quotes I read in books, past interviews, and what I heard from Munger at the Berkshire Hathaway Shareholders Meeting, and picked out 10 quotes to share here. These 10 quotes will guide me to face life’s journey with more wisdom in the past and the future.

“Understand your bottom line and do not let it be trampled.”

“Practice your values.”

“Understand the limits of your capabilities very clearly.”

“Money management is not a game; it’s about managing assets under control.”

“When encountering problems, developing the habit of reverse thinking can help you solve problems more rationally.”

“High concentration and focusing on doing one thing is the key; without this ability, I would never succeed. My success relies not on intelligence but on focus.”

“Regarding choices, I want to tell everyone that almost anything I am not interested in, I can’t achieve in this life. I don’t think spending all day doing things you are not interested in will lead to success. People must do what they are interested in; no matter how much you force yourself, you can’t do well in things you don’t like.”

“No matter what happens, we should maintain a positive attitude and keep moving forward.”

“Jealousy is all harm and no good; I have long since banished jealousy from my mind.”

“If you have a personality of delaying gratification, and you can cultivate this talent, you are already on the road to success and happiness. Wanting everything immediately can lead to destruction.”

Behind Munger’s success, I learned not to ‘seek outwardly’ for how to earn more, how to possess more, where the next opportunity is, or how to seize it, but to ‘explore inwardly’; to recognize your own bottom line, values, interests, strengths, and weaknesses. Everyone has their own unique path and opportunities in life. He is telling us that when we know ourselves well enough, just focusing on doing what we are interested in is enough. It’s never about comparing with others.

At the shareholders’ meeting, Buffett and Munger were effortlessly sitting on stage in front of thousands of shareholders. Buffett controlled the entire time and flow of the event. After Buffett answered, he would say, ‘Charlie?’ indicating whether Munger wanted to add his opinion. When Munger wanted to speak, he would add directly, always concise and to the point. When he didn’t want to speak, he would simply reply ‘no, nothing,’ making the audience laugh. Besides being adorable, I deeply admire them, as Munger and Buffett do not try to please anyone, they just focus on being themselves.

I remember a shareholder asking Buffett and Munger what they usually do or what the secret to Berkshire’s success was. Buffett and Munger said that in their leisure time, they also discuss Berkshire and investment-related matters, because these are things they are interested in and enjoy. Running Berkshire for them is not ‘work’; it’s just taking steps and working with like-minded friends to research, discuss, communicate, and manage what they love, and this ‘thing’ grew into a ‘business’ after four or five decades.

The driving force behind the Berkshire business, apart from their own interests, can be felt from their conversations: Buffett and Munger’s love and support for America. They are not doing it for money but to make everything in this land better and stronger.

When we are doing what we like, what we are good at, and what is meaningful to us, this is the MPS Model mentioned in the book ‘Happier: Learn the Secrets to Daily Joy and Lasting Fulfillment’ proposed by Tal Ben-Shahar, a master of psychology from Harvard University, and a doctor of philosophy and organizational behavior. About the MPS Model, I can write several articles to share my own story, homework done, inner struggles, tools used, and more, but I won’t say much today.

The keywords I learned from Munger are ‘understanding oneself’, ‘focus’, ‘like-minded partners’, ‘do not compare,’ ‘simplicity’, ‘self-discipline.’ How about you?

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