Charlie Munger He said he moved from law to investing only after years of careful saving because he was cautious, not bold or drawn to big risks.
During an interview at the University of Michigan’s Ross School of Business in 2017, then-Berkshire Hathaway vice president Munger said he began practicing law because he had no other option and needed to support his five children. He said he went to law school because it was the “least bad” option at the time.
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Responding to a question about his move from law to investing, Munger said he had saved several years of expenses before getting into the investing business and didn’t go all out until he was sure it would work.
“He was not a brave, adventurous, admirable man,” Munger said. “I was a cautious little squirrel who saved more nuts than I really needed and didn’t dig very deep into my nut pile. He wasn’t that brave.”
Munger said he left his law practice because he wanted more independence and freedom. He said he believed the potential of a legal career was limited at the time and did not foresee the subsequent rise in major law firms.
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“I hated sending bills to other people and needing money from wealthier people,” Munger said. “I thought I was unworthy. I wanted my own money, not because I loved comfort or social prestige, I wanted independence.”
After leaving the law, Munger focused full time on investing through his partnership, Wheeler, Munger & Company. He said that during the financial crisis of 1973-1975 he did not suffer, but watching some of his investors struggle with the collapse of share prices caused him real distress and pushed him to manage only his own money.
“I had $3 million or $4 million, which was a lot of money back then, and I also knew how to handle that $3 million or $4 million very well at the time,” Munger said. “I knew I didn’t need to charge fees or override other investors. I knew it was going to work out.”
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