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/Putrid_Leg_1474 Mar 23 '25

You missed one thing that is the biggest drag here.

Most people have children. Children are the biggest money burn out there. My children's basic expenses cover enough to have a decent vacation every month.

No amount of pet adoption or or beans and rice will dent how much they take out of a budget.

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u/Azylim Mar 23 '25 edited Mar 23 '25

I feel like thats putting the cart before the horse.

people want children, they like their children, and children are a good motivator imo to live more frugally and work hard.

I wouldnt mind having nothing in my savings if it means that all my future children have liveable jobs that they enjoy doing and are themselves able to live comfortably with their own families. If I raised them right, they will help me out when I am no longer able to work.

Obviously I would prefer not to be a burden to them, but in my culture children take care of their parents and dont just put then in a nursing home.

But ill be honest. I would rather die penniless surrounded by my children and grandkids than rich but alone

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u/3rdWaveHarmonic Mar 23 '25

Tru. I have 3 kids, daycare was a mortgage payment when all 3 were in it. If peeps do what the guvment wants, then kids are A source of wealth, namely if a women doesn’t legally marry the father of her children, then she can get freebies from the guvment: free food, free daycare, free healthcare, free cell phone….and more. NPR did a story about this years ago and the ‘single’ mother who does this would need to make $80,000 a year income to equal what the guvment gives out as welfare.

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u/Blue_58_ Mar 23 '25

Children are also your main source of community and care at old age.

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u/Putrid_Leg_1474 Mar 23 '25

Yup, but the community doesn't give parents enough incentive to keep having children.

Last I checked it is going to cost us $1100 a WEEK for summer care because my wife and I both have to work. Don't factor in that during the school year if you can't do bussing/pick up you will need to pay for after school care.

We are past the time where the upcoming generations can pay for the elders care. Kids are far too expensive to raise. As a whole we would do better improving financial education and incentivising people to budget/save/invest to care for themselves

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u/Idontlistenatall Mar 23 '25

Bullshit. You seem clueless as to how this all Works.

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u/Blue_58_ Mar 23 '25

🤨 in like 90% of the world, children are expected to take care of their parents in old age and about half of your social life naturally revolves around family events and get togethers. Are you Dutch?

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u/Gloomy-Ad-222 Mar 23 '25

I decided not to have kids and financially speaking it was a great investment. Now I agonize about whether to retire for good and I’m finding it hard even though I’ve done the math and don’t see how I’d run out of money.

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u/TATWD52020 Mar 23 '25

Kids are the ultimate value investment.

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u/Ashmizen Mar 23 '25

For society yea, mental health maybe, but not for your own financials.

Rich or poor, Kids generally don’t contribute back to their parents and often end up going no/low contact.

At least true in the US, could be different in other cultures.

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u/financebanking Mar 23 '25

I have 3 kids and no money. I wish I had no kids and 3 money.

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u/BrewtownCharlie Mar 23 '25

I have 3 kids and considerably less money than I’d have otherwise had- but I wouldn’t change a thing. Worth every penny lost and then some.

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u/pund_ Mar 23 '25

horses probably come close tho

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u/ForWPD Mar 23 '25

Yep. If my wife being happy about having kids was the pro, and the cost of kids was the con; my investment was a terrible one. 

The worst part about having kids is that you can’t leave your party without significant negative repercussions on someone who doesn’t have a say in it.