Life story

Charlie Munger Life Story – New Trader U

Charlie worked with Warren in Buffet’s grandfather’s grocery store in Omaha, Nebraska. Munger earned $2 for ten hours of work in the 1930s before he went off to college.

Munger left the University of Michigan to become an army meteorologist during World War II. After the war, he graduated from Harvard Law School.

Charlie Munger sad story

“I had no intention of becoming rich. I wanted to go independent, I just overshot!” –Charlie Munger

In 1949, Charlie Munger was 25 years old. He was hired at the law firm Wright & Garrett for $3,300 a year, or $40,528 in inflation-adjusted dollars as of 2022. He had $1,500 in savings, or $18,422 now.

A few years later, in 1953, Charlie was 29 when he and his wife divorced. He had been married since he was 21. Charlie lost everything in the divorce, with his wife keeping the family home in South Pasadena. Munger moved into horrible conditions at the University Club and drove a terrible yellow Pontiac, which his kids said had a horrible paint job. According to the biography written by Janet Lowe, Molly Munger asked her father, “Dad, this car is just awful, a mess. Why are you driving it? The broke Munger replied: “To discourage gold diggers.”

Shortly after the divorce, Charlie learned that his son, Teddy, had leukemia. At that time, there was no health insurance, you paid for everything out of pocket and the mortality rate was close to 100% because the doctors could not do anything. Rick Guerin, Charlie’s friend, said Munger would go to the hospital, hold his young son in his arms, and then walk the streets of Pasadena crying.

A year after the diagnosis, in 1955, Teddy Munger died. Charlie was 31, divorced, broke, and was burying his 9-year-old son. Later in life, he faced a horrific operation that left him blind in one eye with such terrible pain that he ended up having his eye removed.

He met Buffett again at a dinner party in 1959 and began a 60-year friendship and later a business partnership.

In 1962, Munger founded and worked as a real estate attorney with Munger, Tolles & Olson LLP. Later, he gave up practicing law to focus on investment management. He also partnered with Otis Booth and got into real estate development.

Charlie Munger ran his own investment partnership from 1962 to 1975. Munger’s investment partnership generated compound annual returns of +19.8% from 1962 to 1975 against an annual rate of return of +5.0% for the Dow Jones Industrial Average over the same period.[3]

At 31, Charlie Munger was divorced, broke, and was burying his 9-year-old son, who died of cancer. By the age of 69, he had become one of the 400 richest people in the world, had been married to his second wife for over 35 years, had eight wonderful children, countless grandchildren and had become the one of the most respected thinkers. in history. He finally realized his dream of having lots of money, a house full of books and a big family. But that doesn’t mean he hasn’t faced incredible challenges and tragedies. [1]

Charlie Munger Philosophy

Charlie Munger believes that by using a wide range of different mental models from different disciplines, such as psychology, history, math, physics, philosophy, biology, etc., a person can use the output that overlaps of aggregation to create results greater than the sum of its parts. He refers to his model as worldly wisdom.[2]

What can we learn from Charlie Munger?

Pursue your interests and where your work energy lies. Play to your strengths in the world.

Go to bed every night a little wiser than you were when you woke up that morning. Never stop learning.

Find your own path in life.

Reserve about 20% of your time each day to expand your knowledge base and develop your expertise.

Model success, study what makes something successful and copy the principles.

Old fashioned simple values ​​still work.

  • Family first.
  • Hard work.
  • Integrity and honesty.
  • Good communication.
  • Positive attitude.

Fill your mind with good ideas, not bad ones. Focus on what works and avoid negativity.

You must constantly evolve and grow to keep pace with the world.

Always think like a business owner in every role you have.

Always have fun, no matter what you do.

Nick, CC BY 2.0 via Wikimedia Commons

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