In finance, there’s no shortage of “gurus” attempting to guide, scare or sell investors on their approach. They’re often driven not by accuracy or truth, but by convincing an audience they know the unknowable. But on occasion, someone pursues a deeper understanding of what drives markets and investors. Charlie Munger, the late vice chairman of Berkshire Hathaway and Warren Buffett’s lifelong business partner, was one such person.
I’ve studied Munger my entire professional career. More than an investor, he was a philosopher. His insatiable curiosity and grounded wisdom shaped both his business and entire life approach. Munger sought to live in alignment with a few core ideals: curiosity, humility, preparation, simplicity and gratitude. These ideals brought him unbelievable wealth and success. I believe they’re valuable to anyone willing to learn from his wisdom.
Munger relentlessly pursued an understanding of how the world (especially businesses) worked. Researching a company required understanding not only its finances, but the business model itself. How did it function? What made this company exceptional in the marketplace? To him the process was simple; for others it was deceptively hard to replicate. He said this pursuit occupied his mind and kept it from growing old. I’ve seen this myself: when I’m puzzling over a new idea or diving into an unfamiliar task, I feel more alive. While most of us get lost in the weeds, Munger had a knack for cutting through to clarity.
While his curiosity naturally kept him engaged, it was his humility that kept him out of the headlines. He embodied what I call “quiet wealth.” You wouldn’t catch him flaunting exotic cars or sprawling mansions. His wealth wasn’t defined by toys, but by freedom. It granted him the liberty to choose who he spent time with and when he worked or rested. He could pursue what mattered, going all-in if desired. He showed how the life we shape, not the stuff we own, is the real prize. At a Berkshire annual meeting, I watched as Munger gave the comfortable aisle seat to his wife, then sat in the cramped middle seat directly behind me. Humility is an admirable trait. He inspired me to rethink my own priorities — what’s the point of “more” if it means less freedom? Money should be a tool, not a trophy.
As a proponent of a long, quiet life, Munger preached preparation. Health was non-negotiable. Take care of your mind, he’d say, and your body too. He recognized that too many people trade vitality for wealth, only to realize no amount of cash can buy their health back. That’s a sobering thought. Munger urged a steady pace and forward momentum. While I’ve occasionally caught myself skipping workouts to spend time in the office, I try to remember: You don’t get “later” if you don’t tend to “now.”
Munger’s desire for simplicity carried over to investing. “Invest in businesses an idiot can run,” he’d advise, believing complexity was a trap. He’d say talent is fleeting and walks out the door every night. But a straightforward operation endures, even if talent doesn’t return in the morning. He favored what I call “every” business: the one everybody uses, everywhere, every day. Think toothpaste — nothing flashy, just essential. Those with a wide moat from their competition are even better. These businesses are hard to find in an increasingly complex world, but Munger recognized that simplicity wins. Berkshire Hathaway was built on this idea, and it drives my investing approach today.
Beyond the boardroom, Munger had a keen eye for human nature and warned about envy. He called it a “stupid sin,” one that’s deadly and uniquely miserable — a thief of joy. Why begrudge someone moving faster than you? Envy steals your peace, and it also can tank your portfolio. Buffett agreed, warning that envy derails investors. Comparing your returns to your neighbor’s often leads to rash moves, like jumping on trends driven by FOMO (fear of missing out).
Instead of envy, Munger and Buffett preached gratitude. When you’re thankful, you focus on what you have, not on what you’re missing. This mental shift encourages learning from others instead of resenting them. What led to their successes? How can they be repeated or built upon? Envy obsesses over the now; gratitude — coupled with curiosity — builds for the future.
While Munger’s approach may have been rooted in investing, his principles extend so much further, encouraging us to craft a life measured by our own yardstick. Today, our attention is stretched thin by modern life: social media, the news, work — everything weighs and distracts. But by shifting our focus onto what we can contribute — more than on someone else’s highlight reel — we can discover a freer, wealthier life. When I’m feeling overwhelmed, I try to reset and ask: What do I have? What can I build? Munger lived by these principles, and in doing so, created a roadmap for success.
Steve Booren is the founder of Prosperion Financial Advisors in Greenwood Village. He is the author of “Blind Spots: The Mental Mistakes Investors Make” and “Intelligent Investing: Your Guide to a Growing Retirement Income” He was named by Forbes as a 2024 Best-in-State Wealth Advisor, and a Barron’s 2024 Top Advisor by State.