The late billionaire Charlie Munger, an equity partner of Warren Buffett, the former CEO of Berkshire Hathaway, had a very simple rule for getting rich: don’t confuse activity with progress.
“It takes character to sit around with all that money and do nothing. I didn’t get to where I am by chasing mediocre opportunities,” Munger said in the quote.
What does this mean?
This quote means that having money creates pressure to act – to invest, buy, expand or jump on opportunities. But according to Munger, real strength comes from resisting the urge and waiting. He also noted that while you can act, act with self-control and confidence – success comes from being selective, not busy.
Munger suggested that chasing mediocre, “good enough” options can actually hold you back—real gains come from waiting for exceptional opportunities.
Charlie Munger’s advice on how to be rich:
In one of his last interviews, the billionaire said that earning the first $100,000 is the hardest step. “You only have to get rich once. You don’t have to climb this mountain four times. You only have to do it once,” Munger said.
“Big money is not in buying or selling, but in waiting” – He believed in four basic ideas:
- Patience over action
- Avoid stupidity before you seek brilliance
- Long-term thinking
- Inverse thinking
Munger’s attitude was not about ego; it was on the edge. He said if you understand the business you don’t need 47 backups. And if you don’t understand, that’s okay too, just don’t pretend you do.
Who is Charlie Munger?
Charles Thomas Munger was one of the architects behind the success of Berkshire Hathaway. He shaped Berkshire Hathaway’s investment style, pushing Warren Buffett away from cheap butt stocks and into high-quality businesses at fair prices.
Munger, known for his sharp wit, brutal honesty and no-nonsense thinking, was Buffett’s best friend.
He was vice chairman of Berkshire Hathaway from 1978 until the day he died at the age of 99 in 2023.
