Charlie Munger's Financial Success Advice: 'I Avoided Standard Ways Of Failing, Because My Game in Life Was Always To Avoid All Standard Ways of Failing'

The late billionaire Charlie Munger, renowned for his financial acumen and longevity, believed the key to success was avoiding conventional pitfalls.

What Happened: Munger, who lived to 99, attributed his success to a simple and direct approach to life and work. He emphasized the importance of avoiding standard ways of failing, and was known for his cautious decision-making.

Munger, who lived in the same house for 70 years, believed that extravagant living often leads to dissatisfaction. 

“I avoided the standard ways of failing, because my game in life was always to avoid all standard ways of failing. You teach me the wrong way to play poker and I will avoid it. You teach me the wrong way to do something else, I will avoid it. And, of course, I’ve avoided a lot, because I’m so cautious,” Munger said in an interview with CNBC.

His pragmatic approach extended to his spending habits. For instance, when his business associate at Berkshire Hathaway BRK, Warren Buffett, decided to replace a company jet, Munger saw the $6.7 million expense as excessive.

Also Read: Charlie Munger's Three Investment Lessons: ‘Buy Wonderful Businesses At Fair Prices, Big Money Isn't In Buying Or Selling-It's In Waiting, Good Businesses Are Ethical Businesses'

According to Munger, avoiding apparent risks, frivolity, and “insane” scenarios were key to his financial success and longevity. “Steer clear of insanity at all costs. Insanity is far more prevalent than you'd imagine. Avoid crazy at all costs. Crazy is way more common than you think. It’s easy to slip into crazy. Just avoid it, avoid it, avoid it,” Munger said.

Why It Matters: Munger’s philosophy offers valuable insights into his work ethic.

His avoidance of conventional failure modes, cautious decision-making, and disdain for extravagance and risky ventures provide a refreshing perspective in a world often obsessed with quick riches and ostentatious displays of wealth.

His legacy serves as a reminder that success can be achieved through simplicity, caution, and a steadfast refusal to participate in “insane” ventures.

Read Next

Charlie Munger’s 3 Rules For Success: ‘Don’t Sell What You Wouldn’t Buy, Work For Those You Admire, Partner With People You Enjoy’