5 Traits Are ‘Almost Certain To Succeed’ – Charlie Munger

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. Don’t overspend your income.

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 shrewdly

“It’s so simple to spend less than you earn, and invest shrewdly,” Munger told shareholders at one Berkshire Hathaway meeting.

“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

Munger had previously advised, “The game of life is the game of everlasting learning. At least it is if you want to win.” 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

Hold on your principles. Don’t speculate. To achieve long term success, you need to be patient and do the right thing day by day and year after year.

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.”

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