The late Charlie Munger, the esteemed investor and vice chairman of Berkshire Hathaway Inc., chose a path less traveled by those with enormous wealth.
Known for his sharp wit and wise investment strategies, Munger amassed a fortune but remained committed to a remarkably modest lifestyle. For more than seventy years he lived in the same modest house, avoiding the high standard of living that often comes with financial success.
In an interview with CNBC before he died at age 99, Munger discussed his choice to live a simple life despite his wealth. He and Warren Buffett observed many wealthy friends who opted for luxurious, sprawling homes, only to find that their happiness did not increase.
“And I would say that in almost all cases they make the person less happy, not happier,” Munger said. This observation reinforced his commitment to simplicity, believing that grandeur could negatively affect one’s happiness and family life.
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Munger’s lifestyle was based on a philosophy that valued utility over extravagance. He noted that while a larger home might increase one’s ability to host gatherings, it provides little else of value and is costly.
He also expressed concern about the impact of visible wealth on his children, suggesting that an extravagant lifestyle could encourage them to “live big” in ways that were not wholesome or beneficial. Munger, the father of nine children from two marriages, believed that a modest living environment is crucial to nurturing the right values.
Despite his considerable wealth, Munger’s professional background as a real estate attorney gave him a unique perspective on real estate ownership. He owned other real estate investments, yet he chose to establish his permanent residence in a modest home. This decision was not for a lack of opportunities to live grander, but was a conscious choice to model values such as contentment and restraint.
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Munger’s longtime business partner, Buffett, shares a similar view on modest living. Buffett has lived in the same house in Omaha, Nebraska, which he bought in 1958 for $31,500. At Berkshire Hathaway’s 2014 shareholder meeting, he said that owning multiple homes would likely decrease, not increase, his quality of life.
Despite his billionaire status, Munger’s views resonate with recent findings published in the Proceedings of the National Academy of Sciences. The study suggests that while money can increase happiness, this tends to plateau at incomes of around $500,000 per year.
Munger was determined to live a simple, disciplined life, which serves as a powerful example in today’s material-driven society. His philosophy reiterates the idea that true happiness and fulfillment do not come from accumulating possessions, but from focusing on family, meaningful work and maintaining personal integrity.
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This article Charlie Munger Lived in the Same House for 70 Years—He Watched Rich Friends Buy Nice Homes and Become ‘Less Happy, Not Happier’ originally appeared on Benzinga.com
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