Charlie Munger, the billionaire investor and business partner of Warren Buffet, passed away at the age of 99. On a recent interview, Munger revealed the rationale behind his decision to live in the same California home for over 70 years.
## A Conscious Decision
Munger’s choice to live in a relatively modest house was a deliberate decision. He mentioned that he and Buffett had observed that many of their wealthy friends who built large houses did not become happier. Munger believed that a “basic house” had enough utility and thought that larger homes were expensive and didn’t provide much benefit aside from allowing more people to be entertained. He also expressed concern that owning a mansion could spoil his children by encouraging them to “live grandly”.
Munger and Buffett seriously considered having larger houses, especially because Munger had a large number of children. However, they both chose to avoid ostentatious displays of wealth. Buffett similarly lives in a home he bought for a modest amount in 1958 and has lived there ever since.
## A Life of Moderation
Throughout his life, Munger often preached the benefits of living modestly and offered advice such as not envying others and not spending beyond one’s income. He credited his success and longevity to a sense of caution and the ability to avoid standard ways of failing. Munger advised against going crazy and stressed the importance of avoiding it at all costs.
Both Munger and Buffett’s lives reflect their philosophy of modest living. They chose to live in relatively modest homes despite their immense wealth, and have found contentment in doing so.
Charlie Munger’s life and legacy serve as a reminder of the value of living a modest and unassuming life, regardless of one’s wealth. It is a testament to the fact that true happiness and fulfillment do not necessarily come from material possessions but from a sense of contentment and purpose.
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