Charlie Munger Has Given Away Billions Over The Years, Deliberately Spending Down His Wealth — Says, 'My Thinking Is, I'm Not Immortal And I Won't Need It Where I'm Going'

The name Warren Buffett is synonymous with wealth and investment prowess, often making headlines and topping rich lists. This year, he ranked fourth on the Forbes 400. But his lesser-mentioned counterpart Charlie Munger, Berkshire Hathaway's vice chairman, possesses an equally remarkable, albeit different, legacy.

Many might wonder why Munger, a significant figure in the financial world, is conspicuously absent from the glamorous lists of billionaires. The answer isn't his inability to amass wealth, but rather his decision to part with it. 

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A decade ago, at age 89, Munger told the Omaha World-Herald, "My thinking is, I'm not immortal and I won't need it where I'm going." 

He deliberately reduced his net worth, focusing on making impactful contributions rather than accumulating wealth.

This sentiment has been reflected in Munger's philanthropic endeavors over the years. Despite the potential to hold a net worth exceeding $10 billion, had he retained all of his Berkshire Hathaway Inc. stock, Munger has consistently demonstrated his philanthropic spirit. As of Oct. 5, regulatory filings reveal he owned 4,033 Class A shares of Berkshire Hathaway, valued at $2.1 billion and assets that include over $100 million in shares of Costco Wholesale. 

Forbes estimates Munger's net worth at $2.5 billion, placing him at around the 1,200th spot in its real-time wealth rankings. In contrast, Buffett, with an estimated net worth of $121 billion, consistently ranks in the top 10. The disparity is largely attributed to Munger's decision to sell or donate over 75% of his Berkshire stock since 1996 when he owned 18,829 A shares, approximately 1.6% of the then-outstanding stock. 

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Munger's pattern of generosity spans decades. In October, he donated 77 A shares, valued at $40 million to a library and art gallery. In the past, Munger has made substantial contributions to educational institutions. In 2014, he donated $110 million to the University of Michigan to fund a new residence complex. His alma mater, Stanford Law School, also benefited from his generosity when he contributed $20 million to support the construction of new student housing. 

In 2016, he pledged $200 to the University of California, Santa Barbara aimed at constructing new student housing. He was said to be one of UC Santa Barbara's all-time largest donors. 

After his wife died in 2010, Munger directed approximately $1 billion of his stock into a charitable trust.

In an age where net worth is often equated with success, Munger's choices showcase a different kind of success that is defined by how much a person gives away. As Munger's life and actions demonstrate, true legacy lies not just in wealth but in the impact you leave behind.

For many, accumulating wealth isn't just about personal affluence or achieving a luxurious lifestyle. It's about securing a financial legacy that can benefit future generations. Whether it's through donating to causes close to your heart, passing on assets to children or enjoying the fruits of your labor during your lifetime, the ways to use wealth are diverse.

While Munger's method involves significant stock holdings, others might explore different avenues. 
Investing in startups, for instance, presents a unique opportunity. Startups offer the allure of getting in at the ground level, potentially becoming part of the next big success story. By investing early in these burgeoning companies, people have the chance to multiply their wealth and shape the future of innovation. In essence, the choices made today, whether in traditional stocks or the dynamic world of startups, can pave the way for lasting legacies and the creation of generational wealth.

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