Getting rich is the goal for many people. But when someone already has more money than they could ever spend, how much sense does it make to keep risking it for more?
Charlie Munger had a thought about that. The longtime Berkshire Hathaway (BRK.A) (BRK.B) vice chairman questioned why anyone who was already “filthy rich” would want to take on more danger just to grow an already enormous fortune.
More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.
“Why do you want to strain to have more danger when you’re already filthy rich? As Warren says, what difference does it make to him if he has an extra zero on his tombstone?” Munger said during an informal fireside chat with shareholders following the Daily Journal Corp. annual meeting in 2017.
Munger was 93 at the time, while Warren Buffett, Berkshire Hathaway’s chairman and CEO at the time, was 86. Together, the two longtime partners had nearly 180 years of life experience and decades spent building one of the most successful investment businesses in the world.
Sponsored Content: The Flying Car Market Could Reach $9 Trillion — Here’s One Way to Invest Early
When Is Enough Enough?
Munger wasn’t suggesting that people should stop working, investing, or building wealth. His point was about taking on more risk when money is no longer the problem.
An extra zero might make a fortune look more impressive on paper. But for someone who already has enough money to live comfortably for the rest of their life, that additional wealth may not change much about how they live. The potential downside, however, could be enormous if the risks don’t pay off.
It’s easy to get caught up in the numbers. A bigger portfolio, another business, or a higher net worth can become the next target, even after financial security is well within reach. Munger’s observation put that endless pursuit into perspective. More money isn’t always worth what it takes to get it.
A Fortune Isn’t The Whole Story
Munger died, a billionaire, in November 2023 at age 99. His decades-long partnership with Buffett helped build Berkshire Hathaway into a global investment giant, leaving a legacy that reaches well beyond the size of his bank account.
Money can buy comfort, freedom, and opportunities. But a person’s legacy also rests on the decisions they make, the people they help, and the ideas they leave behind. Another zero on a financial statement might impress the world, but it says little about how a life was lived.
For Munger, the question wasn’t simply how much money someone could accumulate. It was whether the pursuit of more was worth the risks when there was already so much to lose.
On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.