Even after his long and impactful life as a billionaire investor and right-hand man to the “Oracle of Omaha” Warren Buffett, Charlie Munger’s wise words live on, inspiring others towards wealth and success.
Warren Buffett’s Advice to Investors: ‘Incredible Period’ for America’s Economy is Ending
Know: Warren Buffett Reveals How To Invest $10,000 If You Want To Get Rich
For decades, Buffett and Munger’s shareholder meetings for Berkshire Hathaway have been synonymous with profound advice on not just investing, but creating a successful life in general.
In a 2019 interview with CNBC’s Becky Quick, Munger echoed advice from shareholder meetings and shared his secrets for a long and happy life. Here are five pieces of advice from Munger that undoubtedly contributed to his long life, financial success, and — most importantly — happiness.
1. Spend Less Than You Earn
It’s not surprising that Munger suggested you can stay happy by living within your means. In his conversation with Quick, he shared several snippets of advice for those who want a better life. One key to success, according to Munger: “You don’t overspend your income.”
By living within your means, you can reduce stress surrounding debt, inflation and rising costs. I you are spending less than what you earn, you have a safety net if your expenses rise or your income drops. Plus, it frees up cash for investments and passive income generation.
2. Invest Wisely
“It’s so simple to spend less than you earn, and invest shrewdly,” Munger told shareholders at one famous Berkshire Hathaway meeting.
Like Buffett, Munger followed the philosophy of holding onto his investments. “The big money is not in the buying and selling, but in the waiting,” he said.
He also advised that you should invest in businesses that virtually anyone can run. “If it won’t stand a little mismanagement, it’s not much of a business,” he said. However, don’t seek out businesses that are poorly run as a general practice: “We’re not looking for mismanagement, even if we can withstand it.”
3. Continue Learning
Learning how to invest and makes the right choices takes time. But if you’re willing to learn, nothing can stop you. Munger had previously advised, “The game of life is the game of everlasting learning. At least it is if you want to win.”
Learning today can take many forms, from taking classes to listening to podcasts or watching YouTube videos. But Munger also emphasized one of these best ways to gain knowledge: “In my whole life, I have known no wise people who didn’t read all the time — none, zero.”
4. Remain Disciplined
Small habits can lead to big results over time. One of Munger’s biggest pointers is to find reliable people to deal with and, in turn, “[Y]ou do what you’re supposed to do.” When people know they can rely on you, whether in business or other relationships, that trust can go far.
5. Avoid Toxic People
While you want to seek out and surround yourself with reliable people, you also want to avoid the toxic ones, Munger advised. “A great lesson of life is get them the hell out of your life — and do it fast,” he told shareholders at one meeting. “If you do all those things, you are almost certain to succeed. If you don’t, you’re going to need a lot of luck.”
More From GOBankingRates
This article originally appeared on GOBankingRates.com: Warren Buffett’s Right-Hand Man Charlie Munger Said People With These 5 Traits Are ‘Almost Certain To Succeed’
