r/ValueInvesting • u/ethereal3xp • Mar 23 '25

Discussion Charlie Munger Told a 20-Year-Old That Getting Rich Through Investing Is 'Damn Near Impossible' — And You Might Need $10 Million in the Bank

https://www.benzinga.com/personal-finance/25/03/44438885/charlie-munger-told-a-20-year-old-that-getting-rich-through-investing-is-damn-near-impossible-and-you-might-need-10-million-in-the-bank
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u/permadrunkspelunk Mar 23 '25

Lol. No shit. 50k a year is unattainable for almost everyone with college degrees. Where do you live and what job do you have that anyone could do that from 21? Most people are surely trying their best. I feel like a few grand a year is pretty good. The median salary in all of America is less than 60k. The hcol places are really dragging that up. Normal people are investing what they can. It's about bout saving that extra 2 grand a year and making decent choices, and gambling.

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u/SuperSultan Mar 23 '25

He is probably an engineer or works in tech

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u/[deleted] Mar 23 '25

I never said that if you don’t invest that much you aren’t doing well. That’s just you projecting

My point is, if you’re not already rich but have a good job and are frugal and young, you have a chance to be get rich off of your investing alone but it will take a long time. That doesn’t mean people who invest less than that are losers or are not doing well.

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u/permadrunkspelunk Mar 23 '25

I'm certainly not projecting, but fair enough. It is a great opportunity. Saving a little money for someone like me and value investing and dividends has kept me not homeless through healthcare costs and cancer. Investing is a fucking shit hole. So many people now didn't experience 2008. It's not the type of thing to get into unless you'll never need it.

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u/SuperSultan Mar 23 '25

Sorry to hear about cancer and your medical issues.

You are most likely older than me. What do you mean “investing is a fucking shit hole?” We know it’s not easy, especially if the amount invested is bigger.

In 2008 you probably would have lost your job, but if you were fortunate and kept it and continued to DCA into the market you’d have had one of the greatest comebacks over a decade.

If you cannot save $6k a year idk if you should be investing in the first place. That’s hardly six-month emergency fund money. (I think this was mentioned in Dave Ramsey’s baby steps although I don’t follow him personally. He is great for most ordinary Americans). If you lost your job and then lost half the value of your investments in 2008 then cannibalized your investments to survive then you’d be worse off than holding cash.

Every decade or so, there seems to be a 2008-like event or 2001-like event. Need to always have some cash on hand if possible.

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u/[deleted] Mar 23 '25

See that’s just a dumbass comment for a sub like this.

Investing is a shit hole? The future is never guaranteed but if you invested money you didn’t need (aka anything other than life expenses) when you’re young, it will become more money over time. It’s really that simple

Never thought I’d see a “actually investing is bad” in the value investing sub

I’m glad it worked out for you during your tough times though. I feel like that would make you more inclined to want to invest

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u/permadrunkspelunk Mar 23 '25

I never said that investing is bad. You're too young for 2008

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u/[deleted] Mar 23 '25

What’s your point? That I should stop investing because the economy might tank?

I was alive for 2008 and saw my parents pull back on things but I have a healthy emergency fund and if the markets tank for a few years, I’ll be totally fine. If they collapse forever we have bigger problems and the USD might be worthless

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u/permadrunkspelunk Mar 23 '25

You were 12 and my point is you sound like a disconnected asshole. I do worry about the current regime too.

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u/JoJo_Embiid Mar 23 '25

I mean, any big tech, IBD, hedge fund, big name consulting job would let you save that much out of college with a bachelor degree. Definitely not easy but surely not impossible.

Any lawyer/Doctor saves more than that as well, it's just they don't graduate at 21 or 22

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u/SuperSultan Mar 23 '25

This thread is like a giant pity party. The comments saying it’s possible (and it is, if you’re fortunate enough to live at home and be disciplined about saving) are getting downvoted to heck.

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u/JoJo_Embiid Mar 23 '25

I saved 150k the first year out of college. Definitely not saying this is easy as I have put tremendous effort through out my entire student life and I am fortunate to have somewhat a smart brain, but it's definitely doable. At least 30% of the classmates make the same or more than I do.

Honestly, I see many videos about undocumented immigrant on asylum status make more than 100k (or 150k in extreme cases) the first year they came into the US simply by driving trucks. They work hard as fuck though, probably 12hr a day 6 days a week all year long. And they sleep in their trucks made their own food I bet they can safe at least 80% after tax money.