Charlie Munger Said, 'You Don't Need To Own A Lot Of Things In Order To Get Rich' – But Believed You Absolutely Need Patience

In 2023, Warren Buffett took a moment in his annual letter to Berkshire Hathaway shareholders to spotlight some of his favorite quotes from his longtime friend and business partner Charlie Munger. Although Munger passed away in November of that year, his wisdom remains a guiding light for investors everywhere.

Here are a few gems that Buffett highlighted:

1. "There is no such thing as a 100% sure thing when investing."

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Munger's warning about the inherent risks in investing is one that every investor should take to heart. He also emphasized that this uncertainty is why "the use of leverage is dangerous." In other words, don't bet the farm on anything, no matter how sure it seems. It's a reminder that humility and caution are crucial when navigating the financial markets.

2. "You don't, however, need to own a lot of things to get rich."

Munger firmly believed in the power of focusing on a few high-quality investments rather than spreading oneself too thin. He understood that the real money comes from a handful of big winners over the long run. To illustrate this, just look at Munger's portfolio, which included only three stocks: Costco, Berkshire Hathaway and the Daily Journal Corporation. It's a powerful reminder that sometimes, less really is more.

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3. "You have to keep learning if you want to become a great investor. When the world changes, you must change."

This quote encapsulates Munger's lifelong commitment to continuous learning. Throughout his life, Munger adapted to the world's ever-changing landscape. One notable example is when he convinced Buffett to invest in BYD, a Chinese electric vehicle company – a move that proved to be incredibly forward-thinking. Munger's message is clear: staying ahead requires a willingness to evolve with the times.

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4. "The world is full of foolish gamblers, and they will not do as well as the patient investor."

Munger's disdain for speculative, short-term trading is evident in this quote. He and Buffett both championed the virtues of patience and discipline in investing, often saying that their favorite holding period is "forever." They believed true wealth is built not by chasing quick gains but by owning strong companies over many years, allowing compounding to work its magic.

Buffett concluded his tribute with a personal note: "I never have a phone call with Charlie without learning something. And while he makes me think, he also makes me laugh." This simple statement captures the essence of their relationship – one built on mutual respect, intellectual growth and, importantly, a good sense of humor.

Charlie Munger's wisdom may have been timeless, but it's also more relevant than ever. His quotes aren't just words; they're a road map for anyone looking to navigate the unpredictable investing world. Even though he's gone, his insights will continue influencing investors for generations.

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