Before billionaire investor Charlie Munger passed away in November 2023 at the age of 99, he sat down with CNBC’s Becky Quick for a wide-ranging interview reflecting on his century-long life. One of the several things he and his longtime business partner, Warren Buffett, had in common? A commitment to simplicity, even as their wealth skyrocketed.
Keeping It Simple
Munger lived in the same house in Los Angeles for about 70 years. Buffett, chairman and CEO of Berkshire Hathaway, has lived in his Omaha home for over six decades. Despite amassing billions, both men decided against moving into extravagant mansions.
“We’re both smart enough to have watched our friends who got rich build these really fancy houses. And I would say in practically every case, they make the person less happy, not happier,” Munger told Quick.
That observation didn’t come from theory. It came from watching peers chase luxury and end up dissatisfied. In his view, a simple, functional home does more for happiness than a sprawling estate. “Having a basic house really helps you. Having a really fancy house, it’s good for entertaining 100 people at once. It’s a very expensive thing to do. And it doesn’t do you that much good.”
Wealth Without Waste
Buffett famously bought his Omaha home in 1958 for $31,500 and never left. Munger’s decision to stay put followed the same logic. They avoided excessive spending not out of frugality, but because they didn’t believe it added value to their lives.
“I still decided not to live a life where I look like the Duke of Westchester or something,” Munger said. “And I was gonna avoid it. I did it on purpose.”
Part of that, Munger explained, was about setting a good example for his kids. Living too lavishly, he believed, could spoil them. “You grow up in a rich family, your duty is to use the wealth and live grandly. That is what everyone is doing with the money. You will learn from people who are doing it.”
A Different Kind of Rich
While many billionaires use wealth to buy status symbols, Buffett and Munger used theirs to build businesses and live lives rooted in purpose. Their homes weren’t just shelters; they were reminders of values that don’t change with the size of your bank account.
Munger summed it up best: “Avoid crazy at all costs. Crazy is way more common than you think. It’s easy to slip into crazy. Just avoid it, avoid it, avoid it.”
And for him, crazy included trying to buy happiness with square footage.