Investment legend Charlie Munger passed away peacefully in a California hospital on November 11 at the age of 28.

He previously filmed a CNBC interview with Becky Quick, who later revealed:"Munger has lived in the same house in Los Angeles for the past 70 years."

Munger, who is worth billions, can buy any luxury house in the world, but he has been living in a relatively ordinary house for many years. It is a bit surprising, but Munger said“Living in a mansion doesn’t really make you happier.”

Why is this? Let’s see together~

01

 Munger: The happiness that a mansion brings to people is limited 

In an interview with CNBC a few weeks before his death, Charlie Munger said that he and Buffett had witnessed many wealthy friends build very beautiful mansions, but almost all of them made people less happy, not happier.

Munger said,"Having a house that meets the basic practicalities of living in is really helpful, but having a very luxurious house is a very expensive thing to do and it doesn't do you much good."

For him, living in a relatively simple house is not an accident, but a conscious choice that he has always made.

Munger believes that another fatal disadvantage of owning a huge mansion is:Such displays of wealth may spoil children by making them spend money.He had nine children from two marriages, including two stepsons and a nine-year-old son who died of leukemia.

He said:"[Buffett and I] have both considered bigger and nicer houses, and I have a lot of kids, so it makes sense. But I still decided not to live a life that looked luxurious and not live in a mansion. I did that on purpose. 's... I think living in a mansion is bad for children."

02

If you don’t move for 70 years, the most important thing is that the house is comfortable 

Munger's houseLocated in the seaside community of Sea Meadow in Montecito, located approximately 90 miles north of Los Angeles and approximately 10 miles from downtown Santa Barbara.

This has always been a vacation destination for many wealthy people, and is known as the "American Riviera."

In addition to Montecito's warm climate and diverse facilities, not to mention expensive housing prices, with an average price of more than $1000 per square foot.

According to pictures exposed online, Munger’s house is a French Normandy-style residence with four bedrooms and six bathrooms.Over 4,600 square feet of living space.

It is reported that,The home sits on a quarter acre just feet from the sand, has been lovingly renovated since it was built.

The leaked images show the home boasting blond hardwood floors, wooden beams and cathedral ceilings, as well as walls of glass doors.

The living room and kitchen both have a luxurious feel.

The bedroom area is very simple and elegant

The grounds also feature landscaped gardens and fruit trees.

Dining terrace, built-in BBQ facilities

There are also full size tennis courts.

Although Munger said that the house he lives in is not a mansion, for ordinary people, this house is already very luxurious.

But for Munger, who is worth hundreds of millions, this house, currently priced at $1100 million, may be a little ordinary...

03

  The billionaire stock god believes in being low-key and frugal

Just like he hasn’t changed his house for many years, Munger often preaches the virtues of modest living and proposes"Do notDon’t overspend”Waiting for suggestions.

Like Munger, Buffett has always been known for his frugality.

The 93-year-old billionaire bought his home in Omaha, Nebraska, in 1958 for $31,500, and Buffett has lived there ever since.

The house was originally built in 1921 and underwent several additions until it was a comfortable 6,500 square foot residence.

Buffett reportedly said at Berkshire Hathaway's 2014 shareholder meeting,"If he owned six to eight houses, his quality of life would be worse."

In addition to the house, it is rumored that he collects discount coupons to buy things, buys hail-damaged cars at low prices, often eats McDonald's breakfast, etc...

Just a while ago, when Buffett and his wife Astrid attended the Allen & Company Sun Valley Conference, the price of coffee aroused heated discussion among netizens because Buffett's wife bought a cup of coffee near the venue. Costed $4 and indicated to the staff that $4 was too expensive.

Netizens were surprised to find out that the consumption views of rich people are different from what we imagined.The richer people are, the more they save, and from time to time we buy coffee worth more than $4 a cup. No wonder we are poorer.

This is even more true for Munger. According to Reuters,Although Munger accumulated a net worth of approximately $23 billion during his lifetime, but he lived frugally and even drove his own car, although he used a wheelchair in his later years.

He was never extravagant in his life, but he was a generous philanthropist; since Munger studied at the University of Michigan in his early years, he was a major donor to his alma mater throughout his life.

• In 2007, Munger donated $300 million to the University of Michigan Law School to improve Hutchins Hall and the famous reading room;

• In 2011, Munger donated $2000 million to the University of Michigan Law School to renovate the Lawyers Club Residential Complex;

• In December 2011, Munger donated 12 shares of Berkshire Hathaway Class A stock (worth a total of approximately $10 million at the time) to the University of Michigan.

• In 2014, he announced a $6500 million donation to the Kavli Institute for Theoretical Physics at the University of California, Santa Barbara. In 2016, he also revealed that he donated $2 million to the organization and more

In addition, there are countless other charity donations...

He said in interviews that he owes his success and longevity to a long history of "caution."

Munger said in the interview:"Avoid madness at all costs, madness is more common than you think. It's easy to slip into madness. Avoid it!"

Just like living in the same house for decades, even if he stands at the top of the world's richest list, he does not show off at all. Being frugal, humble and low-key has always been Munger's attitude towards life.

ref: https://www.cnbc.com/2023/12/01/charlie-munger-living-in-the-same-home-for-70-years-made-me-happier.html

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