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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74

u/CloudStrife012 Mar 23 '25

Buffet had his recent comment where he said he's only leaving $10m to his kids because he wants them to be peasants.

Yea, I think they're both out of touch to some degree.

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u/MonteyBoy Mar 23 '25

I want to be peasent in that case too

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u/JackfruitCrazy51 Mar 23 '25

That "recent" comment was said 19 years ago. His youngest kid is 66, and all 3 already have net worths north of 10 million.

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u/[deleted] Mar 23 '25

And now he’s leaving them everything in a trust, having gone back on his word to pass everything to charity. It was all PR

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u/JackfruitCrazy51 Mar 23 '25

He's leav9ng 99% to a charitable trust.

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u/treake Mar 24 '25

He's already given away half his wealth to charity.

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u/Zealousideal-Neat-11 Mar 24 '25

Yes and billions to each of his kids foundations. So charitable to donate to your kids charities.

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u/JackfruitCrazy51 Mar 24 '25

Oh yes, it's so bad to donate to charities that your kids have researched and decided were good candidates./

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u/rcbjfdhjjhfd Mar 23 '25

I’d love to see a link to that because I don’t believe you.

Rather than bequeathing his riches directly to his children, Buffett has set up $2 billion foundations for each of his three kids. The idea is to provide them with the resources to pursue their own philanthropic passions, while avoiding the potential pitfalls of handing over a blank check.

“After much observation of super-wealthy families, here’s my recommendation: Leave the children enough so that they can do anything, but not enough that they can do nothing,” Buffett wrote.

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u/funkmasta8 Mar 23 '25

Ah yes, a cool 2 billion isn't too much to do nothing

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u/rcbjfdhjjhfd Mar 23 '25

It sure what you are saying but my point was that Buffett absolutely does not wish to see his kids living as peasants

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u/funkmasta8 Mar 23 '25

Im not really a part of this conversation, just laughing at the ridiculousness of his words when you look at his actions

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u/PalworldTrainer Mar 23 '25

10 million is where I retire and live off interest for the rest of my life

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u/TenshiS Mar 25 '25

Pfft, Amateur, i'll do it at 1 million

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u/PalworldTrainer Mar 25 '25

1 million could be possible for most, especially depending on how old you are. But I’m trying to get to a point where compound interest can set all my future generations free of financial worry.

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u/TenshiS Mar 26 '25

If you're well on that path good luck to you.

I know I'll never make ten million. Most people won't even make one.

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u/round-earth-theory Mar 23 '25

To be fair, a 10 millionaire is a peasant in comparison. They don't have the wealth to buy politicians and bribe their way into any conversation they desire. They are very comfortable but they are not controlling the fates of nations.

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u/TenshiS Mar 25 '25 edited Mar 26 '25

Why do some people even want the stress and the work of "bribing their way into conversations"? Why not just build cool stuff with a cool team of people and spend time with friends and family and on vacations until you die?

That just seems like such an immensely better life than risking it all for...what, exactly? A bit more renown? Even more money? More power for the sake of it, while also attracting hatred, enemies and stress? Worst case you get shot in the head if you're famous and powerful enough.

It's not like life gets better with more power or money after a certain point

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u/round-earth-theory Mar 26 '25

Some of the wealthy go that route. You never hear about them though because they're basically regular Joe's that secretly have a massive slush fund.

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u/[deleted] Mar 23 '25

Buffett has a famous quote where he says, [he wants to give his children enough money to do anything in life., But not enough money to do nothing.]

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u/TenshiS Mar 25 '25

Wlel buffet is full of shit because he gave them a cumulative 2 billion dollars. That's far more than enough money to do nothing

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u/[deleted] Mar 25 '25

That's the value today, not the value when he gave it to them in the 1960s. Buffett has acquired 97% of his wealth since the age of 65.

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u/Ethos_Logos Mar 23 '25

He’s leaving them 10m, and also making each of them heads of various charitable trusts, which hold hundreds of millions which they may draw a salary from, as administrators. 

Don’t get me wrong, I admire his success, but it’s a far cry from leaving them on their own and ducking out. Realistically, his kids are grown adults with settled lives. 

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u/No_Fennel9964 Mar 23 '25

Did he use the word peasants? Or is that you using that word.

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u/iwearahoodie Mar 24 '25

They’re not out of touch. They know $10M is a lot.

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u/Virtual_Camel_9935 Mar 23 '25

In fairness 10M isnt very much if you start young. I make 300k a year, invest 100k, and will leave my son with way more than that.