Charlie Munger Told a 20-Year-Old That Getting Rich Through Investing Is 'Damn Near Impossible' — And You Might Need $10 Million in the Bank

Charlie Munger never believed in selling people dreams, and when a 20-year-old from India asked him for investing advice at the Daily Journal DJCO annual meeting in 2015, he didn't sugarcoat a thing. Forbes transcribed the exchange, capturing Munger's brutally honest response.

The question was simple: "What is your advice to a 20-year-old individual who wants to achieve financial freedom through investing?"

Munger's answer? That used to be doable—but for young investors today, the road to riches through investing is a lot rougher.

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"Achieving success through investments has been pretty easy in my lifetime," Munger said. He explained that if an investor was "rational and disciplined," the stock market gave them a built-in tailwind, averaging around 10% per year before taxes. That alone, combined with smart saving and living below your means, "was enough to take care of you."

But then came the reality check.

"Now, if the world is going to get 10% out of indexes in the future, and I don't think it will, in real terms, getting more has proven to be quite difficult," Munger warned. "Some of you who come along later are finding that if you stay in the big stocks, it's damn near impossible for most people."

And then, the gut punch: "When things are damn near impossible, maybe you could stop trying."

That was 2015. Now, in 2025, the market is proving him right.

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The Market Has Changed—Just Like Munger Predicted

The S&P 500 pulled off over 20% gains in 2023 and 2024, but things aren't looking so bright this year. The Magnificent Seven—Apple AAPL, Microsoft MSFT, Tesla TSLA, and the rest of the tech giants—have lost nearly 15%, taking much of the broader market down with them. Investors who thought they could ride big-name stocks to easy riches? They're learning the hard way that the game has changed.

Companies like Tencent are throwing billions into artificial intelligence, but AI-driven investing tools are becoming so common that any advantage they once offered is slipping away. Investors looking for a shortcut to wealth are running into the same problem Munger described: it's damn near impossible for most people to outperform the market now.

That $10 Million Advice—And Who Actually Said It

One of the most memorable moments of the 2015 meeting came when Daily Journal CEO Gerry Salzman joked, "Charlie says the way to get rich is to keep $10 million in your checking account in case a good deal comes along."

The room laughed, but Munger was quick to clarify: that wasn't his advice—it was actually real estate mogul Howard Ahmanson's line to a bunch of young and starving college grads . Then he added his own signature commentary, "rich people sometimes get a little pompous."

For most people, keeping $10 million liquid isn't exactly an option, but Munger's real point was about being prepared. If you want to take advantage of real opportunities, you need money on hand.

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Munger's Final Take—And Why It Still Matters

Munger never promised an easy path to wealth. In fact, he spent decades trying to steer people away from thinking there was a simple formula. And in 2025, his warning is proving more accurate than ever.

The stock market isn't handing out easy money. AI investing isn't a magic trick. And the best opportunities still go to those who are disciplined, patient, and have the capital to act when the time is right.

As Munger put it, if something's "damn near impossible," stop wasting time chasing it. The real key to wealth is to be smart, be prepared, and most importantly—don't be delusional.

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