books recommended charlie munger

The Charlie Munger Reading List (50 Book Recommendations)

R.J. Weiss, CFP®

• Updated June 02, 2024

Charlie Munger is an American investor, a philanthropist, and a former real estate attorney. But he’s most well-known as the billionaire Vice Chairman of Warren Buffett’s Berkshire Hathaway, with the famed value investor describing Munger as his partner.

Like Buffett, Munger is a reading enthusiast, once saying, “In my whole life, I have known no wise people (over a broad subject matter area) who didn’t read all the time – none, zero.”

Munger isn’t a fan of random facts, though. He emphasizes the importance of constructing what he calls “a latticework of interdisciplinary mental models .”

This “latticework” provides the foundation on which the wisdom you gain from reading can sit, and allows you to draw knowledge from multiple fields to better understand the world.

In turn, this can help you avoid bad judgment calls that stem from a lack of understanding about how different things — whether companies, products, investments or even entire systems — are related.  

Consequently, the list of Charlie Munger book recommendations is culled from an array of genres, ranging from finance to biographies to physics.

We’ll break this list down into three sections:

• Books he recommends in his anthology of speeches, Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger .
• Books he has recommended in shareholder letters and/or at a Berkshire Hathaway annual meeting.
• Other recommendations — including a number that have been attributed to Munger over the years, but which our research was unable to verify.

Table of Contents

Recommendations From Poor Charlie’s Almanack

Poor Charlie’s Almanack is a collection of lectures, public commentary and speeches Munger has given over his career. It was compiled by Peter Kaufman.

In the appendix, Munger recommends 20 books covering a wide range of topics.

Here is a list of those books, organized by their date of first publication.

The Autobiography of Benjamin Franklin

Author : Benjamin Franklin Originally published : 1791

Benjamin Franklin accomplished much in his life, including success as a scientist, an inventor and an American founding father. His autobiography is a testament to the power of hard work and relentless self-improvement, detailing his rise from a humble childhood to success and fame.

You can download the Kindle version of the book for free here .

Also, it’s worth noting that Franklin is the author of another book — The Way to Wealth — from which this blog draws its name.

Andrew Carnegie 

Author : Joseph Frazier Wall Originally published : 1970

Andrew Carnegie was one of America’s greatest industrialists and philanthropists. He was also an accomplished writer and peace activist. This biography details how Carnegie got rich, why he believed in giving it away, and how he attempted to use his status to influence politics for the better.

The Selfish Gene

Author : Richard Dawkins Originally published : 1976

In The Selfish Gene , famed evolutionary biologist Richard Dawkins flips on its head the popular view that organisms use genes to reproduce. He argues that, instead, genes use us to reproduce themselves . Dawkins also coined the idea of “memes” – described as self-reproducing ideas – in this book.

Dawkins also published a revised and expanded version of the book, called The Extended Selfish Gene .

Getting to Yes

Subtitle : Negotiating Agreement Without Giving In Authors : Roger Fisher, William Ury and Bruce Patton Originally published : 1981

Getting to Yes: Negotiating Agreement Without Giving In presents a method of negotiation called “principled negotiation,” the purpose of which is to reach a mutually-agreeable outcome without jeopardizing professional relations between both parties. 

The book lays out the five principles of this negotiation strategy, and offers a step-by-step process for putting them into action.

Subtitle : The Psychology of Persuasion Author : Robert B. Cialdini Originally published : 1984

Influence: The Psychology of Persuasion is a classic in the fields of psychology, marketing and sales. In the book, Cialdini covers six fundamental persuasion principles, explaining each and providing examples to demonstrate them in action. He also offers solutions for resisting attempts by others to use them on you.

The Wealth and Poverty of Nations  

Subtitle : Why Some Are So Rich and Some So Poor Author : David S. Landes Originally published : 1998

Why do some countries rise to economic prominence, while others stay stuck in poverty? In The Wealth and Poverty of Nations , David Landes argues that a complicated web of a country’s history and its current cultural norms largely determines its economic condition.

Three Scientists and Their Gods

Subtitle : Looking for Meaning in an Age of Information Author : Robert Wright Originally published : 1988

Robert Wright’s book explores how three eccentric scientists — computer scientist Edward Fredkin, sociobiologist Edward Wilson and economist Kenneth Boulding — attempt to make sense of life’s meaning through theories that toe the line between science and metaphysics.

Only the Paranoid Survive 

Subtitle : How to Identify and Exploit the Crisis Points that Challenge Every Business Author : Andy Grove Originally published : 1988

Andy Grove led chipmaker Intel through massive, industry-wide change that threatened the company. In his book Only the Paranoid Survive , he examines the strategies he used during this crisis, suggesting that other managers can use them in similar situations.

Models of My Life  

Author : Herbert A. Simon Originally published : 1991

Herbert Simon was an economist, political scientist and psychologist whose research spanned several fields. In his autobiography, Models of My Life , he shows how he was able to apply his knowledge to so many areas of science by using mental models — a thought framework that famously underscores Munger’s approach to investing .

The Third Chimpanzee

Subtitle : The Evolution and Future of the Human Animal Author : Jared M. Diamond Originally published : 1991

How did humans come to dominate other animal species? And how does our evolutionary heritage affect the way we live? In The Third Chimpanzee , Jared Diamond explores several human behaviors and how they relate to our animal origins.

Living Within Limits

Subtitle : Ecology, Economics, and Population Taboos Author : Garrett Hardin Originally published : 1993

In Living Within Limits , Garrett Hardin — the author of the seminal “ Tragedy of the Commons ” essay — argues that our planet’s resources are finite, suggesting that the human population can’t grow forever and that we may have to make hard choices in the future.

Guns, Germs, and Steel

Subtitle : The Fates of Human Societies Author : Jared M. Diamond Originally published : 1997

In Guns, Germs, and Steel: The Fates of Human Societies , Jared Diamond argues that geographical and environmental factors played a significant role in the development of the modern world.

He also argues that environmental differences helped some societies get ahead of others, thereby creating positive feedback loops that only amplified the successes of the faster-advancing civilizations.

Subtitle : The Life of John D. Rockefeller, Sr. Author : Ron Chernow Originally published : 1998

John D. Rockefeller is widely considered the wealthiest American ever, with his net worth peaking at $900 million in 1913 — or $418 billion in today’s money. Chernow’s Titan: The Life of John D. Rockefeller, Sr. explores the good and the bad of this man’s life, including how he became the richest person in modern history.

Also worth noting is that while Ron Chernow is an acclaimed historian, he’s most widely known as the author of the Alexander Hamilton biography that inspired actor and musician Lin-Manuel Miranda to write the smash-hit musical Hamilton.

F.I.A.S.C.O.

Subtitle : Blood in the Water on Wall Street Author : Frank Partnoy Originally published : 1999

In this book , former Morgan Stanley derivatives trader Frank Partnoy offers an inside look into the competitive, cutthroat culture of Wall Street. He also takes the reader to his firm’s annual FIASCO skeet-shooting retreat, where you can watch these macho attitudes develop.

Subtitle : The Autobiography of a Species in 23 Chapters Author : Matt Ridley Originally published : 1999

The mapping of the human genome’s 23 chromosome pairs was arguably the most significant scientific breakthrough of the 20th century. In Genome , Matt Ridley spends a chapter on each chromosome pair, telling its story and discussing the history of our species.

The Warren Buffett Portfolio

Subtitle : Mastering the Power of the Focus Investment Strategy Author : Robert G. Hagstrom Originally published : 1999

In this book , Hagstrom introduces Warren Buffett’s stock picking strategies, showing ordinary investors how they can be used to profitably grow and manage a portfolio.

Hagstrom notes that this investing strategy – called focus investing – relies on the underlying business’s financials. So while you don’t have to be a financial whiz to leverage it, you may want to brush up on your foundational knowledge with our “best investing books” recommendation list .

How the Scots Invented the Modern World

Subtitle : The True Story of How Western Europe’s Poorest Nation Created Our World and Everything in It Author : Arthur Herman Originally published : 2001

Many people know that civilizations like Rome have been quite influential on much of the modern world. But in How the Scots Invented the Modern World , Arthur Herman argues that Scotland is (surprisingly) responsible for many aspects of today’s society.

Subtitle : The Theory That Came In From the Cold Authors : John Gribbin and Mary Gribbin Originally published : 2001

In Ice Age: How a Change of Climate Made Us Human , John and Mary Gribbin detail ice ages, interglacial periods, magnetic pole flips and similar events. They also show how an ice age caused us to evolve from our ape ancestors into the humans we are today.

A Matter of Degrees 

Subtitle : What Temperature Reveals About the Past and Future of Our Species, Planet, and Universe Author : Gino Segre Originally published : 2002

In A Matter of Degrees theoretical physicist Gino Segre unites several of the sciences to explore the many mysteries of temperature and how it influences almost everything.

Deep Simplicity

Subtitle : Bringing Order to Chaos and Complexity Author : John Gribbin Originally published : 2004

In Deep Simplicity , John Gribbin explores the field of chaos theory, which, in essence, claims that tiny changes and differences in starting conditions can lead to wildly different outcomes. He shows how it affects events at all levels of existence, from atoms to galaxies.

Recommendations From Shareholder Letters and Annual Meetings

Munger is vice chairman of Berkshire Hathaway’s board of directors, serving as Warren Buffett’s right-hand man. 

As with all public companies, Berkshire holds annual shareholder meetings. But these are more like conferences, with investors from all over the world gathering to hear from the company’s leaders.

Due to the meeting’s conference-like nature, Buffett and Munger also often recommend their favorite books. 

Here are some verified Charlie Munger book recommendations from these events, as well as some taken from letters and memos issued to shareholders.

Additionally, we’ve included book recommendations offered by Munger at Wesco Financial shareholder meetings, where he served as CEO and Chairman from 1984 to 2011.

All of the books listed below are organized by their date of first publication.

The Blind Watchmaker

Subtitle : Why the Evidence of Evolution Reveals a Universe without Design Author : Richard Dawkins Originally published : 1986 Meeting year : Berkshire Hathaway, 2006

The title of The Blind Watchmaker references an analogy used to argue for intelligent design, a theory stating that certain parts of the universe are best explained by the presence of a god figure. Richard Dawkins argues against this theory, in favor of pure natural selection.

Subtitle : Bill Gates and the Making of the Microsoft Empire Authors : James Wallace and Jim Erickson Originally published : 1992 Meeting year : Berkshire Hathaway, 1993

Bill Gates rose from humble computer hacker to become the world’s richest living person through the founding of the tech titan Microsoft. In Hard Drive , investigative journalists James Wallace and Jim Erickson document his rise to power, explaining how he achieved such immense success in what was (and still is) a brutal industry.

Master of the Game

Subtitle : How Steve Ross Rode the Light Fantastic from Undertaker to Creator of the Largest Media Conglomerate in the World Author : Connie Bruck Originally published : 1994 Meeting year : Berkshire Hathaway, 1994

In Master of the Game , business and political journalist Connie Bruck details the career of Steve Ross (the founder of Time Warner) as he turned his father’s funeral business into the massive media conglomerate it is today.

Benjamin Franklin

Author : Carl Van Doren Originally published : 1917 Meeting year : Berkshire Hathaway, 1994

Benjamin Franklin has many biographies, but Munger enjoyed this one enough to recommend it. The book contains a wide selection of Franklin’s autobiographical writings, many of which were out of print for an extended period. Additionally, you’ll find several letters Franklin wrote that were never published before this book was released.

Judgement in Managerial Decision Making

Author : Max H. Bazerman Originally published : 1986 Meeting year : Berkshire Hathaway, 1995

In this textbook , Harvard business professor Max Bazerman merges behavioral decision theory with research on organizational behavior to observe judgment in several managerial contexts. An excellent read for anyone who wants to sharpen their judgment abilities.

The Nurture Assumption 

Subtitle : Why Children Turn Out the Way They Do Author : Judith Rich Harris Originally published : 1998 Meeting year : Berkshire Hathaway, 2016

Which has more impact on a child’s growth: nature or nurture? Many people say the answer is nurture, but Judith Rich Harris’ The Nurture Assumption argues that parents have much less of an impact on their child’s development than one might think.

Darwin’s Blind Spot

Subtitle : Evolution Beyond Natural Selection Author : Frank Ryan Originally published : 2002 Meeting year : Berkshire Hathaway, 2003

In Darwin’s Blind Spot: Evolution Beyond Natural Selection , Frank Ryan argues that Darwin’s theory of natural selection ignores one critical component that helps explain biodiversity: symbiosis, a mutually beneficial relationships between two organisms living in close proximity. Symbiosis is everywhere in the wild, and may even help push evolution along.

Seeking Wisdom

Subtitle : From Darwin to Munger Author : Peter Bevelin Originally published : 2003 Meeting year : Wesco, 2007

Munger himself partly inspired Peter Bevelin to seek out wisdom from as many sources as possible, and to eventually create Seeking Wisdom: From Darwin to Munger . In this book, Bevelin compiles “worldly wisdom” from great thinkers across many eras and fields, with the goal of helping readers change the way they think and act for the better.

Conspiracy of Fools

Subtitle : A True Story Author : Kurt Eichenwald Originally published : 2005 Meeting year : Wesco, 2007

Several massive accounting scandals rocked the financial world at the turn of the 21st century – Enron being at the forefront. In Conspiracy of Fools: A True Story , Kurt Eichenwald dives into the Enron scandal to explain exactly what happened and why.

Fortune’s Formula

Subtitle : The Untold Story of the Scientific Betting System That Beat the Casinos and Wall Street Author : William Poundstone Originally published : 2005 Meeting year : Wesco, 2016

Computer scientist Claude Shannon and physicist John Kelly, Jr. applied information theory — the science underpinning computers — to win big in casinos and in the stock market. Fortune’s Formula tells their story.

No Two Alike

Subtitle : Human Nature and Human Individuality Author : Judith Rich Harris Originally published : 2006 Meeting year : Berkshire Hathaway, 2016

No two human beings are exactly alike. But why does every individual have a unique personality? Judith Rich Harris explores this in No Two Alike , arguing that what we all share as humans is what makes us so different from each other.

The Martians of Science

Subtitle : Five Physicists Who Changed the Twentieth Century Author : Istvan Hargittai Originally published : 2006 Meeting year : Wesco, 2007

As a young chemist, Istvan Hargittai met five Hungarian physicists known as the “Martians of Science.” Each one made significant scientific achievements, from winning a Nobel Prize in physics to developing the modern computer. In this book , Hargittai explores the wisdom of each.

Subtitle : His Life and Universe Author : Walter Isaacson Originally published : 2007 Meeting year : Wesco, 2007

Einstein is responsible for developing some of the most important theories in physics, such as the theory of relativity. In Einstein: His Life and Universe , Walter Isaacson (who also wrote the most popular Steve Jobs biography) does more than simply explore this genius’s discoveries; he attempts to bring him to life, painting a portrait of a complex man that defies the common caricature of a mad but brilliant scientist standing before a chalkboard.

Subtitle : The Story of Success Author : Malcolm Gladwell Originally published : 2008 Meeting year : Wesco, 2009

What sets high achievers apart from everyone else? According to Malcolm Gladwell’s Outliers , we should pay less attention to what successful people are like, and more to the environmental and cultural influences on their lives.

Subtitle : 50 Scientifically Proven Ways to Be Persuasive Authors : Noah J. Goldstein, Steve J. Martin and Robert B. Cialdini Originally published : 2008 Meeting year : Berkshire Hathaway, 2008

Want to learn ways to be persuasive? Noah Goldstein, Robert Cialdini and Steve J. Martin offer you 50 ways to do so — many of which are counterintuitive — in this book . Each one is accompanied by stories and examples so you understand them better.

The Greatest Trade Ever 

Subtitle : The Behind-the-Scenes Story of How John Paulson Defied Wall Street and Made Financial History Author : Gregory Zuckerman Originally published : 2009 Meeting year : Wesco, 2010

John Paulson was one of the Wall Streeters who saw the sub-prime mortgage crisis coming. He bet against it, and eventually profited immensely. In The Greatest Trade Ever , Gregory Zuckerman shows us how Paulson managed to pull off such a significant financial coup.

Related : Check out the book recommendation list from Michael Burry , who also famously shorted the housing market.

In The Plex

Subtitle : How Google Thinks, Works, and Shapes Our Lives Author : Steven Levy Originally published : 2011 Meeting year : Berkshire Hathaway, 2011

Google’s had such an extreme cultural impact that the phrase “Google it” is now synonymous with “look it up.” But how did Google become the behemoth it is today? In this book , Steven Levy takes readers inside the company to highlight its history and operations.

Subtitle : Johnson, Boswell, and the Friends Who Shaped an Age Author : Leo Damrosch Originally published : 2019 Meeting year : Berkshire Hathaway, 2020

In late 18th-Century Britain, several prominent thinkers met for dinner and drinks every Friday night at a tavern in London. While there, they aired their opinions and discussed the times. This group became known as “The Club,” and Damrosch’s book of the same name dives into how their conversations shaped the era.

Other Recommendations

Our goal with this post was to provide the most complete and accurate list of Charlie Munger’s book recommendations. To compile this list, we scoured many sources — including other lists published on the web.

However, we were not able to independently verify that Munger actually recommended many of the titles attributed to him by other articles. The list below highlights those books, as well as a few that we were able to verify, but which do not fit into the categories above.

We will continue researching and updating this list if and when we’re able to verify this information.

• Man’s Search for Meaning by Viktor Frankl (1946). Although this title appears on nearly every Charlie Munger reading list, we have been unable to definitively confirm that he has ever talked about the book.
• The Years of Lyndon Johnson: The Path to Power by Robert Caro (1982). Munger allegedly recommended this book at the 2004 Wesco annual meeting.
• Pride in Performance: Keep It Going! by Les Schwab (1986). Although it appears on nearly every Charlie Munger reading list, we have been unable to definitively confirm that he has ever talked about the book.
• Barbarians at the Gate: The Fall of RJR Nabisco (1989). Munger allegedly recommended this book at Berkshire’s 1992 annual meeting.
• Den of Thieves by James B. Stewart (1992). Munger allegedly recommended this book at Berkshire’s 1992 annual meeting.
• The Language Instinct: How the Mind Creates Language by Steven Pinker (1994). Munger recommended the book in this transcript .
• Getting it Done: How to Lead When You’re Not in Charge by John Richardson and Roger Fisher (1998): Munger wrote a blurb for the book, saying, “This book is must reading for those seeking to maximize their contribution to the constructive work of the world.”
• Distant Force : A Memoir of the Teledyne Corporation and the Man Who Created It, with an Introduction to Teledyne Technologies by G. A. Roberts (2007). This recommendation is unverified, but Munger did discuss Henry Singleton, the founder of Teledyne, at the 2013 Berkshire shareholder meeting.
• The Little Book of Common Sense Investing : The Only Way to Guarantee Your Fair Share of Stock Market Returns by John C. Bogle (2007). This recommendation — which was written by the famed Vanguard founder/fund manager who pioneered the concept of investing in market indexes — appears on Berkshire Hathaway’s shareholder meeting official books list , with a blurb from Munger.
• The Quants : How a New Breed of Math Whizzes Conquered Wall Street and Nearly Destroyed It by Scott Patterson (2010). This recommendation is unverified, but it was reportedly “Charlie’s pick” for the 2010 on-site bookstore at Berkshire’s annual meeting.
• The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success by William Thorndike (2012). This recommendation is unverified, though the following quote is widely attributed to Munger: “A book that details the extraordinary success of CEOs who took a radically different approach to corporate management.”
• A Universe From Nothing: Why There Is Something Rather than Nothing by Lawrence M. Krauss (2012). Munger recommended this book at a Daily Journal Corporation meeting on Feb. 6th, 2013 ( source ).
• Faraday, Maxwell, and the Electromagnetic Field: How Two Men Revolutionized Physics by Nancy Forbes and Basil Mahon (2014): Munger recommended this book in a 2014 appearance on CNBC, as relayed by Business Insider .

Munger often praises reading, once saying, “as long as I have a book in my hand, I don’t feel like I’m wasting my time.” 

But he’s also said this about reading:

“But that’s not enough: You have to have a temperament to grab ideas and do sensible things. Most people don’t grab the right ideas or don’t know what to do with them.” 

In other words, reading alone may stimulate the mind and improve the intellect, but it’s what you do with your newfound knowledge that brings you results.

The books listed above, which come from an array of wildly separate disciplines, will help you build the type of “latticework of knowledge” that Munger cites as being essential for a successful investor.

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Books Recommended By

Charlie munger.

Robert Cialdini

Recommended by.

Alexis Ohanian: "[Read this book] in order to navigate the world with heightened awareness for how we're always being influenced/manipulated."

Naval Ravikant: "Influence was fundamental and had a lot to teach."

Tobi Lutke: "[Influence] ranks in the top five books I’ve ever read"

Andrew Wilkinson: "One of my most recommended business books"

Charlie Munger recommended 'Influence' in his book Poor Charlie's Almanack.

Neil Strauss recommended 'Influence' on his website.

One of Max Levchin's answers to 'What's your favourite business book you'd advise to young entrepreneurs?'

The Outsiders

William thorndike.

Warren Buffett: "An outstanding book about CEOs who excelled at capital allocation.”

Charlie Munger: “A book that details the extraordinary success of CEOs who took a radically different approach to corporate management.”

Michael Mauboussin: "It is [a classic], and should be at the top of the reading list for CEOs and investors."

Patrick O'Shaughnessy: "The Outsiders contains great lessons for investors because it highlights the importance of capital allocation."

Brian Armstrong: "Stories about eight CEOs and how they mastered capital allocation."

Sam Hinkie mentioned 'The Outsiders' in an interview with The Ringer.

Only the Paranoid Survive

Marc Andreessen: "A very good book we recommend"

Ben Horowitz: "I read this book as part of my MBA program. It’s full of common sense, which, while I didn’t know it at the time, isn’t so common."

Vinod Khosla: "Andy's Only the Parnoid Survive is one of [my] favorite books on entrepreneurship"

Balaji Srinivasan: "We’ve all read Grove. Only the paranoid survive."

Charlie Munger recommended 'Only The Paranoid Survive' in his book Poor Charlie's Almanack.

Included on Jamie Dimon's list of favorite books he sent to JP Morgan summer interns in 2010.

Man's Search for Meaning

Viktor frankl.

Shane Parrish: "As hard as you think your life is, it pales in comparison to Auschwitz.

I took two big things away from this book: (1) the ultimate freedom is the ability to choose your attitude in the face of any circumstance and (2) the more you target success, the more you will miss it."

Tony Robbins: " Man’s Search for Meaning provides compelling examples of humanity’s perseverance through trying situations.

This is another book that I’ve read dozens of times. It taught me that if you change the meaning, you change everything."

Jordan Peterson: "A book that I found particularly influential in my intellectual development."

This book was on Sam Altman's bookshelf.

Naval Ravikant mentioned Man's Search for Meaning on Twitter .

Guns, Germs, and Steel

Jared diamond.

Daniel Ek: "A brilliant Pulitzer Prize–winning book about how the modern world was formed, analyzing how societies developed differently on different continents.

I like how this is written from a biologist’s point of view rather than purely based on history or anthropology."

Joe Rogan: "Guns Germs and Steel is an amazing book."

Charlie Munger recommended 'Guns, Germs, and Steel' in his book Poor Charlie's Almanack.

Raoul Pal said 'Guns, Germs, and Steel' influenced his macro thinking on Twitter.

Ron Chernow

Charlie Munger: "One of the best business biographies I have ever read, and it's a very interesting family story too."

David Friedberg: "Hearing the story of the railroads and Standard Oil and what took place in this country is incredible"

Austen Allred: "[One of the books] that has inspired me the most or changed the way I live."

Anthony Pompliano: "One of the best books I read in 2017"

The Autobiography of Benjamin Franklin

Benjamin franklin.

Paul Graham: "It's a great book, probably in my all time top 100."

Elon Musk: "[Benjamin Franklin] was an entrepreneur. He started from nothing. Basically just a runaway kid."

Charlie Munger recommended 'The Autobiography of Benjamin Franklin' in his book Poor Charlie's Almanack.

Einstein: His Life and Universe

Walter isaacson.

Charlie Munger recommended 'Einstein: His Life and Universe' at the 2007 Wesco Annual Meeting.

One of the books Mark Zuckerberg added to his Facebook page.

The Selfish Gene

Richard dawkins.

Charlie Munger: "I had to read The Selfish Gene twice before I fully understood it"

Matt Ridley: "From the moment of its publication 40 years ago, it has been a sparkling best-seller and a scientific game-changer."

Brian Armstrong: "It was interesting but I found I had already heard many of the ideas in this book, which speaks to how influential it is."

Getting to Yes

Roger fisher.

Tim Ferriss: "There’s a term I do recommend, if people read Getting the Yes – BATNA: Best Alternative to Negotiated Agreement, which is a really important concept to grasp."

Charlie Munger recommended 'Getting to Yes' in his book Poor Charlie's Almanack.

Ann Miura-Ko: "Getting To Yes I thought was really good."

Matt Ridley

Naval Ravikant: "Everything by Matt Ridley is worth reading."

Charlie Munger recommended 'Genome' in his book Poor Charlie's Almanack.

Mark Zuckerberg: "I've wanted to read Matt Ridley's books for a while. His recent book The Rational Optimist about how progress and the economy evolve is also near the top of my ever-growing pile of books to read."

Faraday, Maxwell, and the Electromagnetic Field

Nancy forbes.

Charlie Munger: "It’s a combination of scientific biography and explanation of the physics, particularly relating to electricity.

It’s just the best book of its kind I have ever read, and I just hugely enjoyed it. Couldn’t put it down."

Naval Ravikant mentioned reading 'Faraday, Maxwell, and the Electromagnetic Field' on Twitter.

Living Within Limits

Garrett hardin.

Charlie Munger recommended 'Living Within Limits' in his book Poor Charlie's Almanack.

Shane Parrish: "Like Charlie Munger or Nassim Taleb, you need to read the source material over and over in order to soak up the available wisdom."

The Wealth and Poverty of Nations

David landes.

Charlie Munger recommended 'The Wealth and Poverty of Nations' in his book Poor Charlie's Almanack.

Judgment in Managerial Decision Making

Max bazerman.

Michael Mauboussin: "Max Bazerman's book is great for an introduction [on decision making]."

James Wallace

Paul Graham: "Hard Drive, about Microsoft, is good."

Models of My Life

Herbert simon.

Charlie Munger recommended 'Models of My Life' in his book Poor Charlie's Almanack.

How The Scots Invented The Modern World

Arthur herman.

Charlie Munger recommended 'How The Scots Invented The Modern World' in his book Poor Charlie's Almanack.

John Gribbin

Charlie Munger: "Best work of science exposition and history that I've read in many years!"

Frank Partnoy

Charlie Munger recommended 'Fiasco' in his book Poor Charlie's Almanack.

Deep Simplicity

Charlie Munger: "It’s pretty hard to understand everything, but if you can’t understand it, you can always give it to a more intelligent friend."

The Third Chimpanzee

Charlie Munger recommended 'The Third Chimpanzee' in his book Poor Charlie's Almanack.

Andrew Carnegie

David nasaw.

Charlie Munger recommended 'Andrew Carnegie' in his book Poor Charlie's Almanack.

A Matter of Degrees

Charlie Munger recommended 'A Matter of Degrees' in his book Poor Charlie's Almanack.

Three Scientists and Their Gods

Robert wright.

Charlie Munger recommmended 'Three Scientists and Their Gods' in his book Poor Charlie's Almanack.

The Warren Buffett Portfolio

Warren g. hagstrom.

Charlie Munger: "I was flabbergasted to find it not only very well-written, but a considerable contribution to the synthesis of human thought on the investment process."

The Blind Watchmaker

Charlie Munger: "A marvelous book"

A Universe From Nothing

Lawrence krauss.

Charlie Munger recommended 'A Universe From Nothing' at the 2013 Daily Journal Meeting.

Carl Van Doren

Charlie Munger: "I am re-reading a book I really like, which is Van Doren's biography of Benjamin Franklin... I'd almost forgotten how good of a book it was."

No Two Alike

Judith harris.

Master Of The Game

Connie bruck.

The Language Instinct

Steven pinker.

Darwin's Blind Spot

Conspiracy of Fools

Kurt eichenwald.

Fortune's Formula

William poundstone.

Distant Force

George roberts.

Barbarians At The Gate

Bryan burrough.

Getting It Done

The Martians of Science

Istvan hargittai.

In The Plex

Steven levy.

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Charles Munger Books

Charles Munger is one of the most recognized names in finance. Currently, he is Vice Chairman to Chairman Warren Buffett at Berkshire Hathaway.

This American businessman, investor and philosopher is celebrated for his many insightful thoughts. And they don’t just apply to the world of finance, either. Find out more about this intriguing self-made billionaire. Whether you’re new to the world of finance or a veteran investor, Munger may have the advice you need for any stage.

Quick Look: The Best Charles Munger Books

• Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger, 3rd Ed. Expanded by Charles Munger - Buy it now
• On Success by Charles Munger - Buy it now
• Damn Right! Behind the Scenes with Berkshire Hathaway Billionaire Charlie Munger  by Janet Lowe - Buy it now
• University of Berkshire Hathaway  by Daniel Pecaut - Buy it now
• Tao of Charlie Munger by David Clark - Buy it now
• Charlie Munger: The Complete Investor by Tren Griffin - Buy it now

What to Look for in a Charles Munger Book

Our top charles munger books, final thoughts.

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Generally, finance books and investor books can give you a variety of financial information. You can usually find information on the stock market , savings, and investment strategies from general investment books.

But, as you might imagine, Charles Munger books are a little different. While he may cover some of these general topics, he also talks about so much more.

Subject Matter

Munger’s books are usually centered around collections of his speeches, commentaries, and talks. As such, he speaks about a variety of topics that may be applicable to your professional as well as personal life. They may include:

• Decision-making models
• Confluences of multiple biases
• The importance of reading
• Multidisciplinary approach
• Cognitive biases

Charlie Munger is known for his wit and humor . So his books are filled with profound advice sprinkled with wit.

Actionable Ideas

Reading about philosophies and strategies may help you devise your own. However, you need to know what you can do. Actionable ideas can help with that.

For example, Munger talks about decision-making models. But you need to know how to apply them in your own life. Keep in mind, though, that Charlie Munger believes in making the mind “reach out to the idea.” Therefore, the steps you need to take may not be laid out in a conventional style .

Are you ready to dive into the world of Charlie Munger? Find out more about what goes on in the mind of this investor guru. Take a look at the recommendations below.

Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger, 3rd Ed. Expanded by Charles Munger

• Who’s it for? Anyone interested in Munger’s cognitive philosophy for business and life, finance, business, and investments
• Price: $58.45, or you can listen to it for free with an Audible trial - Try it now

If you’re a fan of Charlie Munger’s philosophy or admire his investment savvy, this is the ultimate volume to own. The expanded 3 rd Edition of Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger features all of his lectures, talks, and public commentaries in one complete volume.

Unlike other books about Charlie Munger, this was written and compiled by Peter D. Kaufman with both Buffett and Munger’s cooperation and encouragement. Warren Buffett even created the foreword for this edition.

In this book, you can read all about Charlie Munger’s ideas and views about investing, business and life in general. And, of course, the text is sprinkled with Munger’s unique brand of humor.

The book is divided into 4 main sections:

• Philosophy about life and decision-making
• “Mungerisms”

Furthermore, the volume also includes an appendix that includes standard causes of misjudgment, multi-disciplinary models, and recommended reading. You’ll also find opinion pieces, editorials, and articles by Munger.

Get this book

On Success by Charles Munger

• Who’s it for? Collectors and readers who want an abbreviated version of Poor Charlie’s Almanack
• Price: Out of print (used books available), or you can listen to it for free with an Audible trial - Try it now

For people short on time, this volume is a very abbreviated copy of Poor Charlie’s Almanack. Specifically, On Success contains 3 of Charles Munger’s speeches:

• Talk at Harvard, 1986
• Talk at USC Commencement, 2007
• “The Psychology of Human Misjudgment” talk, 2006

These 3 speeches are arguably some of the greatest of Munger’s extensive talks. In them, he covers decision-making, business, and business ethics. And while both commencement speeches are noteworthy, the talk about Human Misjudgment may make this book worth purchasing.

Keep in mind, however, this short volume is out of print and used books are being sold at collectible prices. Unless you’re a collector, you may find that buying Poor Charlie’s Almanack a better deal as it includes more of Charlie Munger’s work, including these 3 talks.

Damn Right! Behind the Scenes with Berkshire Hathaway Billionaire Charlie Munger by Janet Lowe

• Who’s it for? Academics, investors and CEOs
• Price: $65.00, or you can listen to it for free with an Audible trial - Try it now

Value investing author Janet Lowe takes on this legendary investor in this biography. Damn Right! Behind the Scenes with Berkshire Hathaway Billionaire Charlie Munger is a result of the author’s 3 intensive years of learning all about Munger’s life and work. And it was done with full cooperation and access to Munger’s network.

The narrative the author creates is intriguing. She recreates Munger’s development from a lawyer to an investor in exhaustive detail. Learn some valuable life and investment lessons through Munger’s own life.

University of Berkshire Hathaway by Daniel Pecaut

• Who’s it for? Investors, anyone interested in Buffett & Munger
• Price: $13.49, or you can listen to it for free with an Audible trial - Try it now

If you ever wondered what went on behind closed door meetings at Berkshire Hathaway, then the University of Berkshire Hathaway is the volume for you. Take a peek at 30 years of lessons, advice, and investment strategies handed down from Warren Buffett and Charlie Munger.

Some topics covered in this book include:

• Insight into the strategies, decisions, and thinking of these infamous investors
• Critical reasoning to purchasing a company and methods for assigning a value
• Buffett’s central tenets of value investing

This book gives relevant insight into what it took to build their wealth each year. And it makes for a good companion to Berkshire’s annual financial reports and meeting notes.

Tao of Charlie Munger by David Clark

• Who’s it for? Beginners in investing, finance, and business
• Price: $24.00, or you can listen to it for free with an Audible trial - Try it now

Unlike many other book formats, this one doesn’t build to a final message. This means that you can simply pick up Tao of Charlie Munger and go to the section you need. The simple and concise style is easy to understand and makes it a great option for investor beginners.

The book is divided into 3 sections:

• Business, Banking, and the Economy
• Life and Education

Keep in mind that this is simply one author’s interpretations of Charlie Munger’s quotes. So you may not necessarily agree with the interpretations presented. However, it’s an interesting read, especially for someone new to the financial or business world.

Charlie Munger: The Complete Investor by Tren Griffin

• Who’s it for? Anyone interested in finance
• Price: $24.95, or you can listen to it for free with an Audible trial - Try it now

Can’t get enough of Charlie Munger’s teachings? This author offers more lessons from the billionaire investor. In this book, you’ll find a series of lessons, anecdotes, and instructions for different parts of your life.

Yes, Charlie Munger: The Complete Investor is for investors. However, you may also apply many of Munger’s insights into other areas as well. The author takes public quotes and expounds on them to make them relevant to today’s investment world.

There are many business books to choose from. But very few give the insight into business ethics, investing, and decision-making like legendary investor Charles Munger.

Charlie Munger is an intensely private person. So, unfortunately, he hasn’t penned an extensive library of books. However, he does have many talks and lectures to draw from. And that is exactly what many authors did when writing about this investment icon.

Lastly, if you want to learn directly from Charlie Munger, one of the best options is to go directly to the source. In this case, Poor Charlie’s Almanack should be your go-to volume to learn everything you need to about his investing and life philosophies, psychology, and strategies.

About Luke Jacobi

Luke Jacobi is a distinguished professional known for his role as President at Benzinga, a renowned financial media outlet. With a background in business operations and management, Luke brings valuable expertise to his position, overseeing various aspects of Benzinga’s operations. His contributions play a crucial role in the company’s success, ensuring efficiency and effectiveness across different departments. Prior to his role at Benzinga, Luke has held positions that have honed his skills in leadership and strategic decision-making. With a keen understanding of the financial industry and a commitment to driving innovation, Luke continues to make significant contributions to Benzinga’s mission of providing high-quality financial news and analysis.

Charlie Munger Book Recommendations (43 Books)

Charlie Munger is an American investor, businessman, former real estate attorney, and philanthropist. Wikipedia

Books Recommended by Charlie Munger

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• Charlie Munger Recommended Books

The Language Instinct

How the mind creates language, steven pinker.

Source : "Says that human language ability is not just learned, it is deeply buried - to a considerable extent - in the genome." - Charlie Munger

Deep Simplicity

Bringing order to chaos and complexity, john gribbin.

Source : "It's pretty hard to understand everything, but if you can't understand it, you can always give it to a more intelligent friend." - Charlie Munger

The Greatest Trade Ever

The behind-the-scenes story of how john paulson defied wall street and made financial history, gregory zuckerman.

Source : "He made a lot of money from entirely legal ways but may have created a lot of trouble for himself in the process." - Charlie Munger

The Years of Lyndon Johnson ( 4 books)

Robert caro.

Source : "I think reading [this series] is very important for anyone who wants a view into the human condition." - Charlie Munger

In the Plex

How google thinks, works, and shapes our lives, steven levy.

Source : "I hate to admit this because I've ignored high tech all my life, but I actually read [this book]. And I found it a very interesting book." - Charlie Munger

The Martians of Science

Five physicists who changed the twentieth century, istvan hargittai.

Source : "A hell of a book about five Hungarian physicists, driven to the United States by Hitler, who contributed much to science here." - Charlie Munger

The Warren Buffett Portfolio

Mastering the power of the focus investment strategy, robert g. hagstrom.

Source : "Not only very well written, but a considerable contribution to the synthesis of human thought on the investment process." - Charlie Munger

The Outsiders

Eight unconventional ceos and their radically rational blueprint for success, william n. thorndike.

Source : "Details the extraordinary success of CEOs who took a radically different approach to corporate management." - Charlie Munger

Getting It Done

How to lead when you're not in charge, roger fisher.

Source : "This book is must reading for those seeking to maximize their contribution to the constructive work of the world." - Charlie Munger

Bill Gates and the Making of the Microsoft Empire

James wallace.

Source : "You really get a feeling for what it took to write and sell software in the software revolution." - Charlie Munger

Pride in Performance

Keep it going.

Source : "Will demonstrate really shrewd compensation systems in a whole chain of small businesses." - Charlie Munger

Source : "Best work of science exposition and history that I've read in many years!" - Charlie Munger

His Life and Universe

Walter isaacson.

Source : "I’ve read all the Einstein biographies, and this is by far the best." - Charlie Munger

Benjamin Franklin

An american life.

Source : "It’s hard to write a bad book on such an interesting subject." - Charlie Munger

The Life of John D. Rockefeller, Sr.

Ron chernow.

Source : "One of the best business biographies I have ever read." - Charlie Munger

A Universe from Nothing

Why there is something rather than nothing, lawrence m. krauss.

Source : Charlie Munger recommended this book at the Daily Journal Meeting in 2013.

Models of My Life

Herbert a simon.

Source : Charlie Munger recommended this book in the "Poor Charlie's Almanack" book.

A Matter of Degrees

What temperature reveals about the past and future of our species, planet, and universe.

Living within Limits

Ecology, economics, and population taboos, garrett hardin.

Only the Paranoid Survive

How to exploit the crisis points that challenge every company, andrew s. grove, other experts.

Barack Obama

Brandon Sanderson

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books recommended by Charlie Munger

Charlie Munger is an American investor, businessman, former real estate attorney, and philanthropist. He is vice chairman of Berkshire Hathaway, the conglomerate controlled by Warren Buffett.

Last Updated Jan 31, 2024

Robert B. Cialdini, PhD

Malcolm Gladwell

The Selfish Gene

Richard dawkins.

Guns, Germs, and Steel

Jared diamond.

Seeking Wisdom

Peter bevelin.

The Autobiography of Benjamin Franklin

Benjamin franklin.

Ron Chernow

Only the Paranoid Survive

Andrew grove.

The Outsiders

William n. thorndike.

Getting to Yes

Roger fisher.

The Little Book of Common Sense Investing

John c. bogle.

In The Plex

Steven levy.

Matt Ridley

James Wallace

Judgment in Managerial Decision Making

Max h. bazerman.

The Wealth and Poverty of Nations

David s. landes.

Living within Limits

Garrett hardin.

Noah J. Goldstein, Robert B. Cialdini & Steve J. Martin

John Gribbin

Models of My Life

Herbert a. simon.

A Universe from Nothing

Lawrence m. krauss.

The Warren Buffett Portfolio

Robert g. hagstrom.

A Matter of Degrees

Three Scientists and Their Gods

Robert wright.

Deep Simplicity

Master of the Game

Connie bruck.

How the Scots Invented the Modern World

Arthur herman.

Frank Partnoy

Carl Van Doren

The Greatest Trade Ever

Gregory zuckerman.

The Third Chimpanzee

Andrew Carnegie

Joseph frazier wall, books written by charlie munger.

Poor Charlie's Almanack

Charlie munger, people also viewed.

Bill Miller

Codie Sanchez

Eric Weinstein

Martin Shkreli

Michael Burry

Adam Fisher

John Arnold

Warren Buffett

Strauss Zelnick

Bill Ackman

Graham Duncan

Brent Beshore

The Rational Walk

Jason Zweig

Patrick O'Shaughnessy

Chris Powers

Jim O'Shaughnessy

Mohnish Pabrai

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Radical Reads

20 Books Recommended by Charlie Munger

As Berkshire Hathaway’s visionary vice chairman and Warren Buffett’s right-hand man, Charlie Munger oversaw the company return roughly 2,000,000% on its initial value, or 20,000 to 1. Consistently outperforming market indexes and guiding generations of successful investors, the 97-year-old billionaire credits his staunch pragmatism to the cultivation of multidisciplinary mental models.

In my whole life, I have known no wise people (over a broad subject matter area) who didn’t read all the time – none. Zero.

Drawing heavily from the study of physics, sociology, history, ethics, theology and biology, Munger’s system for practical knowledge is one of constant learning. A voracious reader, he’s recommended a wide range of titles over the years for their unique insights on business and on life.

From human evolution to the psychology of persuasion, find Charlie Munger’s reading list below. Complement with the bookshelves of Warren Buffet , Bill Gates , Elon Musk , and Richard Branson .

Faraday, Maxwell, and the Electromagnetic Field: How Two Men Revolutionized Physics by Nancy Forbes &Basil Mahon

Deep Simplicity: Bringing Order to Chaos and Complexity by John Gribbin

Fiasco: The Inside Story of a Wall Street Trader by Frank Partnoy

Ice Age by John Gribbin & Mary Gribbin

“The best work of science exposition and history that I’ve read in many years!”

How the Scots Invented the Modern World by Arthur Herman

Models of My Life by Herbert A. Simon 

A Matter of Degrees: What Temperature Reveals about the Past and Future of Our Species, Planet, and Universe by Gino Segre

Andrew Carnegie by David Nasaw 

Guns, Germs, and Steel: The Fates of Human Societies by Jared Diamond

The Third Chimpanzee: The Evolution and Future of the Human Animal by Jared Diamond

Influence: The Psychology of Persuasion by Robert B. Cialdini

Living within Limits: Ecology, Economics, and Population Taboos by Garrett Hardin

The Selfish Gene by Richard Dawkins

Titan: The Life of John D. Rockefeller, Sr. by Ron Chernow 

The Wealth and Poverty of Nations: Why Some Are So Rich and Some So Poor by David S. Landes 

The Warren Buffett Portfolio: Mastering the Power of the Focus Investment Strategy by Robert G. Hagstrom

Genome: The Autobiography of a Species in 23 Chapters by Matt Ridley

Getting to Yes: Negotiating Agreement Without Giving In by Roger Fisher &William Ury 

Three Scientists and Their Gods: Looking for Meaning in an Age of Information by Robert Wright

Only the Paranoid Survive: How to Exploit the Crisis Points That Challenge Every Company by Andrew S. Grove 

( via Business Insider )

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Charlie Munger

Recommended books.

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20 Life-Changing Books Recommended by Charlie Munger

Updated May 18, 2024, 18:17 IST

1. Influence: The Psychology of Persuasion by Robert B. Cialdini

2. Guns, Germs, and Steel: The Fates of Human Societies by Jared Diamond

3. the selfish gene by richard dawkins, 4. fiasco: the inside story of a wall street trader by frank partnoy, 5. man’s search for meaning by viktor e. frankl.

6. Getting to Yes: Negotiating Agreement Without Giving In by Roger Fisher and William Ury

7. deep simplicity: bringing order to chaos and complexity by john gribbin, 8. genome: the autobiography of a species in 23 chapters by matt ridley, 9. the third chimpanzee: the evolution and future of the human animal by jared diamond.

10. Faraday, Maxwell, and the Electromagnetic Field: How Two Men Revolutionized Physics by Nancy Forbes and Basil Mahon

11. a matter of degrees: what temperature reveals about the past and future of our species, planet, and universe by gino segre, 12. ice age: how a change of climate made us human by john and mary gribbin, 13. living within limits: ecology, economics, and population taboos by garrett hardin.

14. Titan: The Life of John D. Rockefeller, Sr. by Ron Chernow

15. andrew carnegie by joseph frazier wall, 16. einstein: his life and universe by walter isaacson, 17. only the paranoid survive: how to exploit the crisis points that challenge every company by andrew s. grove, 18. how the scots invented the modern world: the true story of how western europe’s poorest nation created our world & everything in it by arthur herman.

19. The Wealth and Poverty of Nations: Why Some Are So Rich and Some So Poor by David S. Landes

20. the warren buffett portfolio: mastering the power of the focus investment strategy by robert g. hagstrom.

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Charlie Munger’s Books: Recommended Reading List

Charlie Munger is one of the best investors of our time (you can see more on Munger’s resource page ). Charlie Munger is known to read quite a lot of books on varying topics.

Here are some quotes from Munger on the topic:

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“We read a lot. I don’t know anyone who’s wise who doesn’t read a lot. But that’s not enough: You have to have a temperament to grab ideas and do sensible things. Most people don’t grab the right ideas or don’t know what to do with them.” http://www.tilsonfunds.com/brkmtg04notes.doc

“In my whole life, I have known no wise people (over a broad subject matter area) who didn’t read all the time – none, zero. You’d be amazed at how much Warren reads – at how much I read. My children laugh at me. They think I’m a book with a couple of legs sticking out.”

“…by regularly reading business newspaper and magazines I am exposed to an enormous amount of material at the micro level.. I find that what I see going on there pretty much informs me about what’s happening at the macro level.”

Below are a list of 20 books recommended by Munger and four books about Charlie Munger. Poor Charlie's Almanack: The Wit and Wisdom of Charles T. Munger is by far the best book on Munger.

Charlie Munger: Books

• Seeking Wisdom: From Darwin to Munger by Peter Bevelin (2008)
• Poor Charlie's Almanack: The Wit and Wisdom of Charles T. Munger by Peter D. Kaufman (2008)
• Damn Right: Behind the Scenes with Berkshire Hathaway Billionaire Charlie Munger by Januaret Lowe (2003)
• Of Permanent Value by Andrew Kilpatrick

Book recommendations

• The Blind Watchmaker by Richard Dawkins
• Common Stocks and Uncommon Profits by Philip A. Fisher
• Paths to Wealth Through Common Stocks by Philip A. Fisher
• The Intelligent Investor by Benjamin Graham
• The Money Masters by John Train
• Fiasco: The Inside Story of a Wall Street Trader by Frank Partnoy
• Ice Age by John & Mary Gribbin
• Deep Simplicity by John Gribbin
• How the Scots Invented the Modern World: The True Story of How Western Europe's Poorest Nation Created Our World & Everything in It by Arthur Herman
• Models of My Life by Herb Simon
• A Matter of Degrees: What Temperature Reveals about the Past and Future of Our Species, Planet, and Universe by Gino Segre
• Andrew Carnegie by Joseph Frazier Wall
• Guns, Germs, and Steel: The Fates of Human Societies Jared Diamond
• The Third Chimpanzee by Jared Diamond
• Influence: The Psychology of Persuasion by Robert B. Cialdini
• Autobiography of Benjamin Franklin
• Living within Limits: Ecology, Economics, and Population Taboos by Garrett Hardin
• The Selfish Gene by Richard Dawkins
• Titan: The Life of John D. Rockefeller, Sr. , Sr. by Ron Chernow
• The Wealth and Poverty of Nations: Why Some Are So Rich and Some So Poor by David S. Landes
• The Warren Buffett Portfolio: Mastering the Power of the Focus Investment Strategy by Robert Hagstrom
• Genome: The Autobiography of a Species in 23 Chapters (P.S.) by Matt Ridley
• Getting It Done: How to Lead When You're Not in Charge by Roger Fisher and Alan Sharp
• Three Scientists and Their Gods: Looking for Meaning in an Age of Information by Robert Wright
• Only the Paranoid Survive by Andy Grove
• A Man for All Markets: From Las Vegas to Wall Street, How I Beat the Dealer and the Market by Ed Thorp ( source DJCO 2017 meeting )

Exclusive ValueWalk series on Munger's life

• Charlie Munger — Part One: The Beginning
• Charlie Munger — Part Two: Quality Over Value
• Charlie Munger – Part Three: Sit On Your A$$
• Charlie Munger — Part Four: Investment Advice
• Charlie Munger — Part Five: Checklist Investing
• Charlie Munger — Part Six: The Daily Journal
• Charlie Munger — Part Seven: Poor Charlie’s Almanack
• Charlie Munger — Part Eight: Berkshire At 50
• Charlie Munger -- Part Nine: Colorful Charlie And The Cinderella Principle
• Charlie Munger — Part Ten: Conclusion

Charlie Munger's full resource page can be found here .

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Charlie Munger’s Book Recommendations

Charlie Munger is an American investor, businessman, former real estate attorney, architectural designer, and philanthropist.  Wikipedia

15 Books Recommended by Charlie Munger

Outliers: The Story of Success  is a 2008 book by Malcolm Gladwell.

5 recommender Bill Gates , Charlie Munger , Dwayne Johnson , Jay Z , and Joe Rogan

“Perfectly marvelous book.” – Charlie Munger ( Source )

The Selfish Gene

The Selfish Gene  is a 1976 book by Richard Dawkins.

1 recommender Charlie Munger

“Richard Dawkin’s The Selfish Gene and The Blind Watchmaker are marvelous and powerful books.” – Charlie Munger ( Source )

The Blind Watchmaker

The Blind Watchmaker: Why the Evidence of Evolution Reveals a Universe without Design  is a 1986 book by Richard Dawkins .

Titan: The Life of John D. Rockefeller, Sr. is a 1998 book by Ron Chernow.

“It is one of the best business biographies I have ever read.” – Charlie Munger ( Source )

The Outsiders

The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success is a 2012 book by William Thorndike.

2 recommenders Charlie Munger and Dave Morin

“Details the extraordinary success of CEOs who took a radically different approach to corporate management.” – Charlie Munger

Faraday, Maxwell, and the Electromagnetic Field

Faraday, Maxwell, and the Electromagnetic Field: How Two Men Revolutionized Physics is a 2014 book by Nancy Forbes and Basil Mahon.

“It’s just the best book of its kind I have ever read, and I just hugely enjoyed it. Couldn’t put it down. It was a fabulous human achievement.” – Charlie Munger ( Source )

Ice Age is a 2001 book by John and Mary Gribbin.

“Best work of science exposition and history that I’ve read in many years!” – Charlie Munger

The Warren Buffett Portfolio

The Warren Buffett Portfolio: Mastering the Power of the Focus Investment Strategy is a 1999 book by Robert G. Hagstrom.

“When I read it, I was flabbergasted to find it not only very well written but a considerable contribution to the synthesis of human thought on the investment process.” – Charlie Munger ( Source )

The Little Book of Common Sense Investing

The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns is a book written by John C. Bogle.

2 recommenders Charlie Munger and Warren Buffett

“This book truly serves as a great guide on how to think of and what different kinds of benchmarks and stock market index to look for.” – Charlie Munger

Einstein: His Life and Universe

Einstein: His Life and Universe  is a 2007 book by Walter Isaacson.

2 recommenders Charlie Munger and Mark Zuckerberg

“Charlie Munger recommends and considers this Einstein biography from Walter Isaacson to be the best.”

Deep Simplicity

Deep Simplicity: Bringing Order to Chaos and Complexity is a 2004 book by John Gribbin.

“Charlie Munger recommended this book in Poor Charlie’s Almanack .”

Yes!: 50 Scientifically Proven Ways to Be Persuasive is a 2007 book by Noah J. Goldstein, Steve J. Martin and Robert Cialdini.

“Charlie Munger recommended this book at the 2008 Berkshire Hathaway annual meeting.”

Guns, Germs, and Steel

Guns, Germs, and Steel: The Fates of Human Societies  is a 1997 book by Jared Diamond.

2 recommenders Charlie Munger and Jamie Dimon

“I have read this book twice, which I very seldom do and it’s a marvelous book.” – Charlie Munger ( Source )

Influence: The Psychology of Persuasion  is a 1984 book by Robert B. Cialdini.

3 recommenders Charlie Munger , Max Levchin and Whitney Tilson

“Charlie Munger recommended this book in Poor Charlie’s Almanack .”

The Autobiography of Benjamin Franklin

The Autobiography of Benjamin Franklin is an unfinished record of his own life written by Benjamin Franklin from 1771 to 1790.

2 recommenders Charlie Munger and Cory Booker

“Benjamin Franklin is Charlie’s all-time heroes and he recommends this book in Poor Charlie’s Almanack .”

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Charlie Munger's Top Book Recommendations

Vice Chairman/Berkshire Hathaway

Want to know what books Charlie Munger recommends on their reading list? We've researched interviews, social media posts, podcasts, and articles to build a comprehensive list of Charlie Munger's favorite book recommendations of all time.

50 Scientifically Proven Ways to Be Persuasive

Noah J. Goldstein Ph.D., Steve J. Martin, Robert Cialdini Ph.D. | 4.15

See more recommendations for this book...

MASTER OF THE GAME

Connie Bruck | 3.69

Judgment in Managerial Decision Making

Max H. Bazerman and Don A. Moore | 4.11

Benjamin Franklin Volume 1

Carl Van Doren | 4.38

A Universe from Nothing

Why There Is Something Rather Than Nothing

Lawrence M. Krauss, Richard Dawkins | 4.12

The Greatest Trade Ever

The Behind-the-Scenes Story of How John Paulson Defied Wall Street and Made Financial History

Gregory Zuckerman | 4.27

Fabrice Grinda I have lots of books to recommend, but they are not related to my career path. The only one that is remotely related is Peter Thiel’s Zero to One. That said here are books I would recommend. (Source)

Mastering the Market Cycle

Getting the Odds on Your Side

Howard Marks | 3.95

Warren Buffett When I see memos from Howard Marks in my mail, they’re the first thing I open and read. I always learn something, and that goes double for his book. (Source)

Charlie Munger I always say, ‘There’s no better teacher than history in determining the future.’ Howard’s book tells us how to learn from history . . . and thus get a better idea of what the future holds. (Source)

Ray Dalio Howard Marks’s Mastering the Market Cycle is a must-read, because the cycles covered in this book are important and because Howard is one of the investing greats of his generation. (Source)

The Autobiography of Benjamin Franklin (Classic Biography)

Benjamin Franklin | 4.06

Gretchen Rubin I copied Franklin in my own book. He believed that we all could determinately sit down and come up with practical steps to make changes in our life. He identified 13 virtues that he wanted to imbue in himself and made a weekly chart to help him track his daily progress. I copied my resolutions chart from him. (Source)

Cory Booker [The author] didn’t mean to write his autobiography. He wanted to write a note to his family about what he’d learned in his experiments. (Source)

Brandon Stanton One of the very first books that I read. (Source)

The Little Book of Common Sense Investing

The Only Way to Guarantee Your Fair Share of Stock Market Returns

John C. Bogle | 4.44

Warren Buffett In his 2014 shareholder letter, Buffett recommended reading this book over listening to the advice of most financial advisers. (Source)

Kaya Thomas @MegBartelt You’re welcome! Thanks for writing great content. You mentioned John Bogle which book do you recommend I start with, “The Little Book of Common Sense Investing”? (Source)

Seeking Wisdom

From Darwin To Munger

Peter Bevelin | 4.34

Nassim Nicholas Taleb A wonderful book on wisdom and decision-making written by a wise decision-maker. This is the kind of book you read first, then leave by your bedside and re-read a bit every day, so you can slowly soak up the wisdom. It is sort of Montaigne but applied to business, with a great investigation of the psychological dimension of decision-making. I like the book for many reasons --the main one is that... (Source)

Jason Fried Finally got to re-reading one of my favorite books: Seeking Wisdom, from Darwin to Munger. Highly recommended. (Source)

Derek Sivers A great overview of the lessons of Charlie Munger (partner of Warren Buffett) - and his approach to checklists of multi-disciplinary models to guide clear thinking. (Source)

Don't have time to read Charlie Munger's favorite books? Read Shortform summaries.

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The Story of Success

Malcolm Gladwell | 4.38

Bill Gates [On Bill Gates's reading list in 2011.] (Source)

James Altucher Gladwell is not the first person to come up with the 10,000 hour rule. Nor is he the first person to document what it takes to become the best in the world at something. But his stories are so great as he explains these deep concepts. How did the Beatles become the best? Why are professional hockey players born in January, February and March? And so on. (Source)

Cat Williams-Treloar The books that I've talked the most about with friends and colleagues over the years are the Malcolm Gladwell series of novels. Glorious stories that mix science, behaviours and insight. You can't go wrong with the "The Tipping Point", "Outliers", "Blink" or "David & Goliath". (Source)

Andrew Carnegie

Joseph Frazier Wall | 3.90

The Warren Buffett Portfolio

Robert G. Hagstrom | 4.12

The Wealth and Poverty of Nations

Why Some Are So Rich and Some So Poor

David S. Landes | 4.13

John Kay He provides an explanation for why Western Europe was the cradle for modern economic growth and looks at the development of the institutions that made modern economic development possible. (Source)

Diane Coyle The Wealth And Poverty of Nations is one of several really fantastic economic history books of recent times. (Source)

Sean Turnell It’s the most erudite examination of what causes economic development and growth that’s been written in many decades. (Source)

The Third Chimpanzee

The Evolution & Future of the Human Animal

Jared M. Diamond | 4.23

Guns, Germs and Steel

The Fates of Human Societies

Jared Diamond Ph.D. | 4.22

Bill Gates Fascinating.... Lays a foundation for understanding human history. (Source)

Daniel Ek A brilliant Pulitzer Prize-winning book about how the modern world was formed, analyzing how societies developed differently on different continents. (Source)

Yuval Noah Harari A book of big questions, and big answers. The book turned me from a historian of medieval warfare into a student of humankind. (Source)

The Autobiography of a Species In 23 Chapters

Matt Ridley | 4.27

Mark Zuckerberg This book aims to tell a history of humanity from the perspective of genetics rather than sociology. This should complement the other broad histories I've read this year, as well as follow "Energy" well in focusing on science. I've wanted to read Matt Ridley's books for a while. His recent book "The Rational Optimist" about how progress and the economy evolve is also near the top of my... (Source)

Naval Ravikant Getting into the more evolution, science kind of books, I really highly, highly recommend picking up Genome [...]. (Source)

In the Plex

How Google Thinks, Works, and Shapes Our Lives

Steven Levy | 4.06

Bill Slawski In The Plex is a great introduction to Google, and the many who work there. I knew many by the patents they file, so it was good to learn more about them as people. Some good insights to some algorithms in the book, too. https://t.co/TVz7GsD8nX (Source)

Alan Pierce I’m currently reading “In the Plex: How Google Thinks, Works and Shapes Our Life" and am excited on gaining more insight into how google is changing the world and hopefully to get some valuable understanding I can use to maximize business decisions and read future trends while assessing investment opportunities for my company, ABM Investments. (Source)

The Outsiders

Eight Unconventional CEOs and Their Radically Rational Blueprint for Success

William N. Thorndike | 4.43

Warren Buffett In his 2012 shareholder letter, Buffett praises The Outsiders as "an outstanding book about CEOs who excelled at capital allocation." Berkshire Hathaway plays a major role in the book. One chapter is on director Tom Murphy, who Buffett says is "overall the best business manager I've ever met." (Source)

Michael Dell Thorndike explores the importance of thoughtful capital allocation through the stories of eight successful CEOs. A good read for any business leader but especially those willing to chart their own course (Source)

Mason Hawkins The Outsiders is a must-read for leaders—and aspiring leaders—striving to become exceptional CEOs, and for investors interested in partnering with exceptional stewards of corporate capital. (Source)

The Life of John D. Rockefeller, Sr.

Ron Chernow | 4.45

Ryan Holiday A biography has to be really good to make read you all 800 pages. To me, this was one of those books. Since reading it earlier this year, I’ve since found out it is the favorite book of a lot of people I respect. I think something about the quality of the writing and the empathic understanding of the writer that the main lessons you would take away from someone like Rockefeller would not be... (Source)

Adam Townsend @Sociopathlete Great book (Source)

Anas Alhajji @Morg2006 Yep, I already have it. great book. (Source)

Bill Gates and the Making of the Microsoft Empire

James Wallace and Jim Erickson | 4.36

• Book Collections

Books Recommended by Charlie Munger

Munger grew up during the ‘30s Great Depression, when he helped his family by working to earn his own money. During the Second World War, he started to major in mathematics but, as there was a high demand for military service, enlisted in the Army Air Corps during his second college year. He was sent to study general science and engineering, and afterwards trained to become a meteorologist – then essential to flyers. After being discharged from the Army Air Corps at the end of the war, he graduated from Harvard Law School with magna cum laude.

He started practicing law at a firm in Southern California, while turning to outside ventures and investing. In 1962, Munger established a new law firm together with four colleagues and, over the years, it became one of the nation’s leading business law firms. Charlie left the firm as an active partner a few years later, to focus on investment partnerships.

He met Warren Buffett in 1959, at a homecoming dinner held by a family friend, and they’ve kept up through frequent telephone conversations and letters. In time, their independent portfolios started to have overlapping investments. They both invested in a company that was acquired by Berkshire Hathaway, and their shares were converted into Berkshire Hathaway stock – that’s when they decided they no longer want to manage funds directly for investors and started to build equity through stock ownership in the holding company.

Munger has a unique worldview, a self-developed ‘ Multiple Mental Models ’ approach that borrows big ideas from a variety of disciplines and serves as his framework for gathering, processing and acting on information. He’s self-taught and considers that the patient, organized and focused approach to life helped him become a successful investor.

He’s also eager to identify and acknowledge his own mistakes and learn from them, as he once said: “If Berkshire has made a modest progress, a good deal of it is because Warren and I are very good at destroying our own best-loved ideas. Any year that you don’t destroy one of your best-loved ideas is probably a wasted year.”

Munger spends most of his days reading, learning and thinking, rather than doing – he doesn’t make a lot of investments. He attributes a great deal of his success to reading and said that:

“ In my whole life, I have known no wise people (over a broad subject matter area) who didn’t read all the time. You’d be amazed how much Warren reads – and how much I read. My children laugh at me. They say I’m a book with a couple of legs sticking out.”

Charlie is also a philanthropist and frequently donates millions of dollars to educational and research institutions.

If you want to learn more about Charlie Munger, his approach to learning, decision making, mental models, investing and more, the best read is “ Charlie’s Almanack ”, a book edited by Peter Kaufman and with a foreword by Warren Buffett. The proceeds from the sales are donated to the Munger Research Center of the Huntington Library.

Books recommended by Charlie Munger:

Mastering the market cycle: getting the odds on your side.

by Howard Marks

Faraday, Maxwell, and the Electromagnetic Field: How Two Men Revolutionized Physics

by Nancy Forbes , Basil Mahon

Deep Simplicity: Bringing Order to Chaos and Complexity

by John Gribbin

Fiasco: The Inside Story of a Wall Street Trader

by Frank Partnoy

Ice Age: How a Change of Climate Made Us Human

by John Gribbin , Mary Gribbin

How The Scots Invented the Modern World: The True Story of How Western Europe’s Poorest Nation Created Our World & Everything in It

by Arthur Herman

Models of My Life

by Herbert A. Simon

A Matter of Degrees: What Temperature Reveals about the Past and Future of Our Species, Planet, and Universe

by Gino Segre

Andrew Carnegie

by David Nasaw

Living within Limits: Ecology, Economics, and Population Taboos

by Garrett Hardin

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Charlie Munger: The Complete Investor (Columbia Business School Publishing) Kindle Edition

Charlie Munger, Berkshire Hathaway's visionary vice chairman and Warren Buffett's indispensable financial partner, has outperformed market indexes again and again, and he believes any investor can do the same. His notion of "elementary, worldly wisdom"—a set of interdisciplinary mental models involving economics, business, psychology, ethics, and management—allows him to keep his emotions out of his investments and avoid the common pitfalls of bad judgment. Munger's system has steered his investments for forty years and has guided generations of successful investors. This book presents the essential steps of Munger's investing strategy, condensed here for the first time from interviews, speeches, writings, and shareholder letters, and paired with commentary from fund managers, value investors, and business-case historians. Derived from Ben Graham's value-investing system, Munger's approach is straightforward enough that ordinary investors can apply it to their portfolios. This book is not simply about investing. It is about cultivating mental models for your whole life, but especially for your investments.

• Print length 226 pages
• Language English
• Sticky notes On Kindle Scribe
• Publisher Columbia Business School Publishing
• Publication date September 15, 2015
• File size 579 KB
• Page Flip Enabled
• Word Wise Enabled
• Enhanced typesetting Enabled
• See all details

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• ASIN ‏ : ‎ B010EB3EUM
• Publisher ‏ : ‎ Columbia Business School Publishing (September 15, 2015)
• Publication date ‏ : ‎ September 15, 2015
• Language ‏ : ‎ English
• File size ‏ : ‎ 579 KB
• Text-to-Speech ‏ : ‎ Enabled
• Screen Reader ‏ : ‎ Supported
• Enhanced typesetting ‏ : ‎ Enabled
• X-Ray ‏ : ‎ Enabled
• Word Wise ‏ : ‎ Enabled
• Sticky notes ‏ : ‎ On Kindle Scribe
• Print length ‏ : ‎ 226 pages
• Page numbers source ISBN ‏ : ‎ 023117098X
• #16 in Stock Market Investing (Kindle Store)
• #29 in Investing Basics
• #70 in Motivational Business Management

About the author

Tren griffin.

Tren Griffin is an executive at Microsoft. Before joining Microsoft, Tren was a partner at the private equity firm Eagle River which makes investments telecommnications busnessses and startups. He previously worked as a consultant in Australia and Korea. He writes the www.25iq.com blog and is active on Twitter.

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Charlie Munger Said If You Want To Be Rich, 'Find A Way To Get Your Hands On $100,000' — And Then 'You Can Ease Off The Gas A Little Bit'

Charlie Munger , the late vice chairman of Berkshire Hathaway and Warren Buffett's esteemed business partner, was celebrated for his sharp wit and sage advice. Munger, who passed away just shy of his 100th birthday, left behind a legacy of financial wisdom that continues to inspire. 

One of his most memorable pieces of advice was about the challenge of accumulating your first $100,000. He famously quipped, "The first $100,000 is a b*tch, but you gotta do it. I don't care what you have to do — if it means walking everywhere and not eating anything that wasn't purchased with a coupon, find a way to get your hands on $100,000. After that, you can ease off the gas a little bit."

Don't Miss:

• Are you rich? Here’s what Americans think you need to be considered wealthy.
• Can you guess how many retire with a $5,000,000 nest egg? – How does it compare to the average?

This profound advice, often reiterated in Munger's speeches, underlines the discipline required to build initial wealth. It was also thoughtfully detailed in Janet Lowe's book, Damn Right!: Behind the Scenes with Berkshire Hathaway Billionaire Charlie Munger. Munger emphasized that achieving the first $100,000 from a standing start, with no initial capital, is the toughest hurdle in wealth building. He likened the process to rolling a snowball down a long hill — the journey starts slow but gains momentum as you progress.

For someone earning $60,000 annually, diligently saving $10,000 each year without investments illustrates Munger's principle: it would take 10 years to accumulate $100,000, requiring patience and a frugal lifestyle. This scenario underscores the importance of long-term financial planning and the need to remain disciplined with your spending habits.

However, integrating a conservative investment strategy with an average annual return of 4% could notably accelerate this timeline. In this case, saving $10,000 annually could allow one to reach the $100,000 mark in just under 8.58 years, demonstrating the substantial impact of compound interest on savings.

Given the changing value of money, it's crucial to recognize that $100,000 in the 1990s — when Munger often discussed these concepts — would be equivalent to about $188,204 today. However, many financial experts still agree that the first $100,000 is the most important and the hardest. 

Trending: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." These high-yield real estate notes that pay 7.5% – 9% make earning passive income easier than ever.

Once an individual manages to save this initial sum, investing it can open doors to even greater financial opportunities . For instance, a $100,000 portfolio yielding a 4% annual return generates roughly $333 monthly in dividends. This passive income stream significantly eases monthly financial pressures and highlights the tangible benefits of reaching this financial threshold.

Moreover, if these dividends are reinvested at a 7% annual growth rate, the cumulative effect over the years can significantly boost the portfolio's value, enhancing financial stability and flexibility. This practical demonstration of Munger's advice shows that $100,000 provides a substantial foundation for future wealth and illustrates the financial principles that can guide anyone toward achieving greater economic security.

Charlie Munger's insights into the mechanics of wealth accumulation, grounded in discipline and strategic investment, remain a beacon for those navigating the complexities of personal finance. His teachings, emphasizing the blend of intense initial effort and thoughtful resource management, continue to be a marathon and a sprint toward financial security.

Tips for Financial Success:

• Live below your means: Avoid lifestyle inflation and resist the urge to overspend as your income increases.
• Embrace frugality: Look for ways to save on everyday expenses. As Munger suggests, "If it means walking everywhere and not eating anything that wasn’t purchased with a coupon," find creative ways to cut costs. Take advantage of coupons, discounts, app deals, and other saving opportunities.
• Prioritize debt repayment: High-interest debt can significantly hinder your progress, so focus on paying off any outstanding balances.
• Build an emergency fund: Aim to save three to six months’ worth of living expenses in a readily accessible account for unexpected events.
• Seek financial education: Continuously learn about personal finance and investment strategies to make informed decisions.
• Warren Buffett flipped his neighbor's $67,000 life savings into a $50 million fortune — How much is that worth today?
• Can you guess how many Americans successfully retire with $1,000,000 saved? The percentage may shock you .

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Retirement can be a difficult part of life to navigate, and a financial advisor can help. Finding a qualified financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you're ready to find an advisor who can help you achieve your financial goals, get started now.

This article Charlie Munger Said If You Want To Be Rich, 'Find A Way To Get Your Hands On $100,000' — And Then 'You Can Ease Off The Gas A Little Bit' originally appeared on Benzinga.com .

wisdom quotes trending all quotes

80 Charlie Munger Quotes (On Life, Business, Investing)

By Maxime Lagacé

Maxime is the founder of WisdomQuotes. He has been collecting quotes since 2004. His goal? To help you develop a calm and peaceful mind. Learn more about him on his about page .

Life Quotes – Business Quotes – Investing Quotes – Success Quotes  – Simplicity Quotes  – Visual  – Takeaways  – Further Readings

You have access here to 80 of the top Charlie Munger quotes .

And you will not be disappointed.

Not only was Charlie smart, but he was also direct and funny.

What will you learn today?

• How to be successful in business (and your life)
• The key to becoming a great investor
• The secret to making better decisions (hint: it has a lot to do with patience, self-control, and discipline)

But who was Charlie Munger (1924-2023)?

• He was an investor and philosopher
• He was the business partner of Warren Buffett , one of the most successful investors in the world
• He was the vice chairman of Berkshire Hathaway , a conglomerate holding company

So, be ready to learn about stoicism, mental models, and the value of learning itself.

So much useful in today’s world.

Please enjoy the best Charlie Munger quotes.

Charlie Munger Quotes On Life

Do a lot of deferred gratification. Charlie Munger

You should avoid sloth and unreliability. Charlie Munger

You’re not going to get very far in life on the basis of what you already know. You’re going to advance in life by what you’re going to learn. Charlie Munger

A majority of life’s errors are caused by forgetting what one is really trying to do. Charlie Munger

Another thing, of course, is that life will have terrible blows in it, horrible blows, unfair blows. It doesn’t matter. And some people recover and others don’t. Charlie Munger

Envy is a really stupid sin because it’s the only one you could never possibly have any fun at. There’s a lot of pain and no fun. Why would you want to get on that trolley? Charlie Munger

The best thing a human being can do is to help another human being know more. Charlie Munger

I think a life properly lived is just learn, learn, learn all the time. Charlie Munger

Assume life will be really tough, and then ask if you can handle it. If the answer is yes, you’ve won. Charlie Munger

If you don’t get this elementary, but mildly unnatural, mathematics of elementary probability into your repertoire, then you go through a long life like a one-legged man in an ass-kicking contest. Charlie Munger

I did not succeed in life by intelligence. I succeeded because I have a long attention span. Charlie Munger

Acquire worldly wisdom and adjust your behavior accordingly. If your new behavior gives you a little temporary unpopularity with your peer group…then to hell with them. Charlie Munger

Invert, always invert: Turn a situation or problem upside down. Look at it backward. Charlie Munger

Don’t drift into self-pity because it doesn’t solve any problems. Charlie Munger

Recognize reality even when you don’t like it – especially when you don’t like it. Charlie Munger

My family was into all that stuff, getting ahead through discipline, knowledge, and self-control . Charlie Munger

Mimicking the herd invites regression to the mean. Charlie Munger

Always take the high road, it’s far less crowded. Charlie Munger

Charlie Munger Quotes On Business

Opportunity comes to the prepared mind. Charlie Munger

Show me the incentive and I will show you the outcome. Charlie Munger

When you borrow a man’s car, always return it with a tank of gas. Charlie Munger

Almost all good businesses engage in ‘pain today, gain tomorrow’ activities. Charlie Munger

A great business at a fair price is superior to a fair business at a great price. Charlie Munger

Never, ever, think about something else when you should be thinking about the power of incentives. Charlie Munger

In the world of business , the people who are most successful are those who are doing what they love. Charlie Munger

The iron rule of nature is: You get what you reward for. If you want ants to come, you put sugar on the floor. Charlie Munger

I would argue that passion is more important than brainpower. Charlie Munger

I try to get rid of people who always confidently answer questions about which they don’t have any real knowledge. Charlie Munger

If at all feasible, you want to maneuver yourself into doing something in which you have an intense interest alongside people whose company you enjoy. Charlie Munger

Three rules for a career: Don’t sell anything you wouldn’t buy yourself. Don’t work for anyone you don’t respect and admire. Work only with people you enjoy. Charlie Munger

The most important thing is knowing where you are competent and where you aren’t. The human mind tries to make you believe you are smarter than you are. Rub your nose in your mistakes. Charlie Munger

Remember that reputation and integrity are your most valuable assets and can be lost in a heartbeat. Charlie Munger

Determine value apart from price; progress apart from activity; wealth apart from size. Charlie Munger

Don’t sell anything you wouldn’t buy yourself. Charlie Munger

• 201 Steve Jobs Quotes On Life, Business, Innovation
• 100 Tim Ferriss Quotes On Fear, Business, Money
• 420 Naval Ravikant Quotes On Happiness, Life, Money

Charlie Munger Quotes On Investing And Money

I did not intend to get rich. I just wanted to get independent. Charlie Munger

Live within your income and save so that you can invest. Charlie Munger

The first rule of compounding: Never interrupt it unnecessarily. Charlie Munger

The big money is not in the buying or the selling, but in the waiting. Charlie Munger

All intelligent investing is value investing, acquiring more than you are paying for. Charlie Munger

We try more to profit from always remembering the obvious than from grasping the esoteric. Charlie Munger

In the world of business, the ability to adapt is essential. Successful people recognise change as an opportunity, not a threat.

You make your money by the waiting. Charlie Munger

Investing is where you find a few great companies and then sit on your ass. Charlie Munger

The wise ones bet heavily when the world offers them that opportunity. They bet big when they have the odds. And the rest of the time, they don’t. It’s just that simple. Charlie Munger

It’s waiting that helps you as an investor, and a lot of people just can’t stand to wait. If you didn’t get the deferred-gratification gene, you’ve got to work very hard to overcome that. Charlie Munger

No wise pilot, no matter how great his talent and experience, fails to use his checklist. Charlie Munger

What is the secret of success? I’m rational. That’s the answer. I’m rational. It’s not possible for investors to consistently outperform the market. Therefore you’re best served investing in a diversified portfolio of low-cost index funds. Charlie Munger

People who cannot be alone with their own thoughts for a long time are terrible candidates to become successful investors. Charlie Munger

Like Warren, I had a considerable passion to get rich, not because I wanted Ferrari’s – I wanted the independence. I desperately wanted it. Charlie Munger

We recognized early on that smart people do very dumb things, and we wanted to know why and who, so that we could avoid them. Charlie Munger

A lot of people with high IQs are terrible investors because they’ve got terrible temperaments. Charlie Munger

You don’t have to be brilliant, only a little bit wiser than the other guys, on average, for a long, long time. Charlie Munger

Our game is to recognize a big idea when it comes along when one doesn’t come along very often. Charlie Munger

Someone will always be getting richer faster than you. This is not a tragedy. Charlie Munger

The desire to get rich fast is pretty dangerous. Charlie Munger

Charlie Munger Quotes On Success, Learning, Reading

In my whole life, I have known no wise people who didn’t read all the time — none, zero. Charlie Munger

Patience is not just a virtue; it’s a strategy. Success often requires waiting for the right moment to act. Charlie Munger

Develop into a lifelong self-learner through voracious reading; cultivate curiosity and strive to become a little wiser every day. Charlie Munger

Success comes from making rational decisions based on facts, not emotions. Remove the emotional cloud to see the clear path forward. Charlie Munger

We both (Warren Buffett) insist on a lot of time being available almost every day to just sit and think. That is very uncommon in American business. We read and think. Charlie Munger

I constantly see people rise in life who are not the smartest, sometimes not even the most diligent, but they are learning machines. They go to bed every night a little wiser than when they got up and boy does that help — particularly when you have a long run ahead of you. Charlie Munger

To get what you want, deserve what you want. Trust, success, and admiration are earned. It’s such a simple idea. It’s the golden rule so to speak: You want to deliver to the world what you would buy if you were on the other end. Charlie Munger

I met the towering intellectuals in books, not in classroom. Charlie Munger

It’s remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent. Charlie Munger

Neither Warren nor I are smart enough to make decisions with no time to think. We make actual decisions very rapidly, but that’s because we have spent so much time preparing ourselves by quietly reading. Charlie Munger

Spend each day trying to be a little wiser than you were when you woke up. Discharge your duties faithfully and well. Slug it out one inch at a time, day by day. Charlie Munger

You’d be amazed at how much Warren reads – and at how much I read. My children laugh at me. They think I’m a book with a couple of legs sticking out. Charlie Munger

There is no better teacher than history in determining the future… There are answers worth billions of dollars in 30$ history book. Charlie Munger

Most people are too fretful, they worry to much. Success means being very patient, but aggressive when it’s time. Charlie Munger

There are always people who will be better at something than you are. You have to learn to be a follower before you become a leader. Charlie Munger

You need patience, discipline , and agility to take losses and adversity without going crazy. Charlie Munger

Charlie Munger Quotes On Simplicity

We have a passion for keeping things simple. Charlie Munger

We have three baskets for investing: yes, no, and too tough to understand. Charlie Munger

If something is too hard, we move on to something else. What could be more simpler than that? Charlie Munger

Take a simple idea and take it seriously. Simple ideas have been the source of most human success. Charlie Munger

Our job is to find a few intelligent things to do, not to keep up with every damn thing in the world. Charlie Munger

Simplicity has a way of improving performance by enabling us to better understand what we are doing. Charlie Munger

You don’t have to have the ability that quantum mechanics requires. You just have to know a few simple things and really know them. Charlie Munger

It’s the work on your desk. Do well with what you already have and more will come in. Charlie Munger

The secret to happiness is to lower your expectations. Charlie Munger

It’s so simple: you spend less than you earn. Invest shrewdly. Avoid toxic people and toxic activities. Try to keep learning all your life. And do a lot of deferred gratification. If you do all those things, you are almost certain to succeed. And if you don’t, you’ll need a lot of luck. And you don’t want to need a lot of luck. You want to go into a game where you’re very likely to win without having any unusual luck. Charlie Munger

What was Charlie Munger’s famous quote?

I believe in the discipline of mastering the best that other people have ever figured out. I don’t believe in just sitting down and trying to dream it all up yourself. Nobody’s that smart. Charlie Munger (It seems Charlie loved quotes too…)

Visual With Charlie Munger’s Idea

Acknowledging what you don’t know is the dawning of wisdom. Charlie Munger

Key Takeaways

• Read a lot. Charlie was an avid reader, like his billionaire partner Warren Buffett. This helped him have a vast amount of knowledge in many different fields that he could then translate to better decisions for his investments. As Warren Buffett said, “The more you learn, the more you earn.”
• Thing long-term. Charlie talked often about staying patient and waiting for the right opportunities. He also insisted on deferring gratification, or “pain today, gain tomorrow”.
• Build mental toughness. Charlie liked the idea of stoicism in which we accept willingly what life throws at us. By living this way, we become more responsible and capable of facing any challenges.
• Be curious. Charlie was 99 when he died. But he was still curious, asking questions, and reading about psychology, biology, physics, etc. He lived by his words, “I think a life properly lived is just learn, learn, learn all the time.”
• Use mental models. To make good decisions, Charlie used mental models . For example, he loved inverting . So, instead of asking “How can I become happy?” Ask yourself “How can I become miserable? ” Then avoid doing these.

Further Readings

• Topic: Motivation
• 100+ Powerful Motivational Quotes For Success
• 130 Monday Motivation Quotes To Kick-Start Your Week
• 81 Motivational Quotes For Students To Study Hard
• 82 Innovation Quotes To Make You More Creative
• Charlie Munger (Wikipedia)
• Books by Charlie Munger (Amazon)
• 100 Entrepreneur Quotes To Help You Achieve More
• 100 Risk Quotes To Reassure (and Empower You)

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"Knowing yourself is the beginning of all wisdom." -Aristotle

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Five Charlie Munger quotes to make you a better investor

This week’s Investing Compass episode goes through the wisdom of Charlie Munger

Charlie Munger passed away recently at 99 years of age. Munger is perhaps best known for his association with Warren Buffett but his influence over Buffett is underappreciated. Before meeting Munger, Buffett was a classic value investor.

Buffett practiced what was coined as cigar butt investing where he bought dirt cheap companies with ‘one puff’ left. He was able to profit off of these investments and earned enviable returns until the bull market of the 1960s started. As valuation levels steadily rose Buffett’s approach was no longer viable. He decided to give up and ended the Buffett Partnership telling his investors that he no longer understood what was happening with markets.

Buffett and Munger had been introduced at a dinner in Omaha in 1959. Munger was a lawyer who had graduated at the top of his Harvard Law School class but his attention slowly shifted to investing in shares and real estate. Soon Buffett and Munger were on the phone every day talking about investing. And Buffett credits Munger as the originator of the Berkshire Hathaway investment approach.

The new approach was no longer based on finding dirt cheap companies. Instead, Buffett and Munger focused on finding great businesses with sustainable competitive advantages and fair valuation levels. They would then aim to hold them forever.

There are five Munger quotes that stood out to us that reflected the wisdom and experience he gained over a lifetime of investing. Listen to the full episode below. Alternatively, read the full article here.

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You can find the transcript to the episode below.

Shani Jayamanne: Welcome to another episode of Investing Compass. Before we begin, a quick note that the information contained in this podcast is general in nature. It does not take into consideration your personal situations, circumstances, or needs.

Mark LaMonica: So, Shani has in big bold on the notes for this podcast. Mention that the resource page is up to date.

Jayamanne: It is.

LaMonica: And you've been slaving over this thing.

Jayamanne: I have. Well, we haven't updated it for a very long time because it was just Mark and I on the team and we didn't have, we had a lot of open positions, let's say. So, we now have Joseph on the team as we mentioned. So, we've been able to go through a bit of the backlog. We've got the resources page up to date and we're sending the transcripts again to our team in India to do. And I've gotten all these new transcripts that are coming onto the website. And I've realized that they've had to listen to all of our very strange conversations. They had to type out that whole conversation we had about Groundhog Day.

LaMonica: Okay. I don't want to burst your bubble here, but you know, they have software that writes the things and they check it over. It's not somebody in India listening to every word typing it.

Jayamanne: I hope that they're fans. I hope that they're listening because they want to listen.

LaMonica: I think they're doing this because they get paid. That's just me. But anyway.

Jayamanne: And they're very lucky because they get the episode before anyone else gets the episode.

LaMonica: Except for Will.

Jayamanne: Yeah.

LaMonica: Well, anyway, Shani's done no other work for two weeks, except for do this stuff. So, check out the resource page.

Jayamanne: Yes, please.

LaMonica: All right. Let's get into the episode. So, we always play the Warren Buffett drinking game, but we also talk about Charlie Munger quite a bit as well. And they are, of course, investment partners, were investment partners. Unfortunately, Charlie passed away last year. And they are the secret behind the success of Berkshire Hathaway.

Jayamanne: And as Mark said, he passed away recently at 99 years of age.

LaMonica: Which is just terrible, right? You want to make it to 100. If you get that close.

Jayamanne: I know. You want to get the ton.

LaMonica: It's not a problem that I will ever have.

Jayamanne: Okay. Munger has rarely been known independently. He's always been best known for his association with Warren Buffett. But if you've read Snowball by Alice Schroeder, it's easy to say that his influence over Buffett is underappreciated by most.

LaMonica: And Shani, we're also investment partners, right? So, who do you think you would be in this scenario? Would you be Buffett or Munger?

Jayamanne: I don't think I fit either of them, but I might take Buffett because he's still alive.

LaMonica: Okay. I mean, that's fair enough. I think I'd want to fly under the radar a little bit. So, I think maybe I would want to be Munger.

Jayamanne: Okay. This works out well. But when Buffett met Munger. He was a classic value investor.

LaMonica: And he practiced something that he called cigar butt investing, where he bought dirt cheap companies with one puff left. And he was able to profit off of these investments and earned enviable returns until the bull market of the 1960s started.

Jayamanne: As valuation levels steadily rose, Buffett's approach was no longer viable. He decided to give up and ended the Buffett partnership, telling his investors that he no longer understood what was happening with markets.

LaMonica: And that is much more sensible than what a lot of professional investors do. So, how did these two investment partners meet Shani?

Jayamanne: Us or Buffett and Munger?

LaMonica: Well, us, we met at work.

Jayamanne: Yeah, we met at my first day of work. You were arguing about franking credits with one of our colleagues.

LaMonica: Yes. And you've disliked me ever since. So, you did come over and you said, and now that I know you better, I know that this is like, really not something you generally do.

Jayamanne: No.

LaMonica: But you came over and said, sorry to interrupt. And told me I was speaking loud enough that everybody in the office heard my conversation.

Jayamanne: And so I could be invited in if I wanted to. But anyway, here we are today. Buffett and Munger had been introduced at a dinner in Omaha in 1959. And Munger was a lawyer who had graduated at the top of his Harvard Law School class, but his attention slowly shifted to investing in shares and real estate. Soon, Buffett and Munger were on the phone every day talking about investing.

LaMonica: And Buffett credits Munger as the originator of the Berkshire Hathaway investment approach.

Jayamanne: And the new approach was no longer based on finding dirt cheap companies. Instead, Buffett and Munger focused on finding great businesses with sustainable competitive advantages and fair valuation levels. They would then aim to hold them forever.

LaMonica: That sounds very familiar. So the point of this episode is to go through some of Munger's quotes, and these are my favorite Munger quotes. And then we'll go through our interpretation of the lessons investors can take from his quotes.

Jayamanne: All right. So the first quote is, the big money is not in the buying and selling, but in the waiting.

LaMonica: Yeah. And it doesn't really take a rocket scientist to work this one out. So humans are action-oriented. It's in our DNA. So when we face stressful situations, we have this innate need to do something. So in most endeavors in life, action yields the best results. With investing, it's a little different. When it is applied to investing, it means that in many cases, investors sell to relieve anxiety.

Jayamanne: And this usually happens at times of volatility, where the market will turn at a completely random and unpredictable time, and it'll turn when the newspaper headlines are full of negative stories about the economy and everything looks quite bleak.

LaMonica: And ultimately selling and trying to buy again is trying to time the market, which doesn't work. So what Munger is saying here is patience is the key to success.

Jayamanne: And again, it's easier said than done to be patient. It means going against our instincts and the situation is made worse by the news cycle and technology that bombards us with data and breaks down any friction to trading.

LaMonica: And simply understanding that patience is the key to success is likely not enough. Add your own friction by creating an investment policy statement. Putting structure around decision making will help you to profit from Munger's wisdom in your own portfolio. Start by defining your goals and an investment strategy, which includes criteria for selecting investments and trading.

Jayamanne: Okay, let's move on to the next quote. Munger has said, like Warren, I had a considerable passion to get rich, not because I wanted Ferraris, I wanted independence, I desperately wanted it.

LaMonica: So people always tell me, so I don't have any children, you don't have any children. But people always say this thing that they don't have a favorite child. And as an only child, and obviously with no children of my own, I'll have to take their word on it. There's nothing stopping anyone from having a favorite Munger quote.

Jayamanne: I was wondering where you were going with this.

LaMonica: I was just rambling along. But this is my favorite Munger quote. And so, Shani, you have a sister.

Jayamanne: Yes.

LaMonica: Do you think that your parents have a favorite child?

Jayamanne: I don't think they did, Mark. I think both of us were pretty good kids. Well behaved.

LaMonica: That seems to be the sanitized version for the podcast, but I guess we'll go with that. But do you have a favorite Munger quote?

Jayamanne: Okay, well, why don't we get to the end of the episode and I'll tell you which one is my favorite?

LaMonica: Sounds fair enough.

Jayamanne: All right. So Munger's fortune was recently estimated at $2.6 billion. That is a lot of independence.

LaMonica: It is, Shani. But what has always inspired me to save and invest was gaining independence. And it, of course, is a journey. At first, it was just having an emergency fund. So I knew I could cover unexpected expenses. Then I wanted to have more spending money to go out for a meal. And when I wanted to start traveling, my goal now is to get to the point where I'm not reliant on my fortnightly paycheck to pay for my life, whether I choose to stop working or not.

Jayamanne: Just so you know, Mark, we get paid monthly. So that's two less paychecks a year than you were expecting. So you've got a ways to go. Or maybe it means you're already there if you're not sure how often we get paid.

LaMonica: Okay.Well, I'm not the one that transfers my money into my investments a week and a half before our paycheck.

Jayamanne: I just get excited about it.

LaMonica: Yeah. There you go. So what we all have to ask ourselves is if we want to look rich to people we don't know or be independent to pursue the life we want, and Munger chose the latter.

Jayamanne: And I interpret the quote a little bit differently. Yes, choosing perceptions over spending money on what you choose to will make you unhappy. But to me, Munger was talking about choice. And choice to do what you want with your money and not be imprisoned by circumstance. And it's about being able to leave uncomfortable situations, whether that's relationships or jobs, living circumstances. It's about being able to choose what life you want, even if that is to look rich to people that you don't know, even if that is ridiculous, having the choice to do so is what independence means.

LaMonica: Thank you for putting the emphasis on uncomfortable situations when you put it on jobs. I enjoyed that. All right, we're going to move on to the next quote. And there's no better teacher than history in determining the future. There are answers worth billions of dollars in a history book.

Jayamanne: Is this why your head is always buried in history books, Mark? You're looking for a billion dollar?

LaMonica: I am. I unfortunately have not found it yet. But I'm looking. All right.

Jayamanne: Well, I recently asked Mark what he would like to do in retirement. And he said that he knows a little about a lot of history. So he wants to learn about certain periods in depth. And those periods were pre-World War I Europe, the 1848 Revolution, and the Civil Wars. Any in particular, Mark, or just Civil War in general?

LaMonica: Well, I was referring to the U.S. Civil War. But today we talked about the Sri Lankan Civil War.

Jayamanne: We did. Yeah.

LaMonica: So anyway. I'm already there.

Jayamanne: So let's get back to what Munger said. We all believe we live in a unique time, that the challenges we face as a society and on an individual level are distinct. In reality, the same patterns are repeated throughout history.

LaMonica: A starting point for an investor looking to navigate current market conditions is to look to the past. And what worked in the past is likely ignoring all the noise and just focusing on the things that can be controlled. Minimizing taxes, minimizing fees, and sticking with great companies over the long term.

Jayamanne: And we've put together an article that has all the lessons that you can learn from market history. We'll link that in the podcast notes. Okay. The next quote, a majority of life's errors are caused by forgetting what one is really trying to do.

LaMonica: And this is something we talk about all the time on here. So most investors don't know what they're trying to accomplish. And no, getting rich doesn't count. Figuring out what you are trying to accomplish is a requirement for understanding how to do it.

Jayamanne: We have more investment choices than we need. And each of these choices has an articulate advocate making a compelling case of why something is a great opportunity. It is no wonder that investors ping pong between different strategies and investment products.

LaMonica: And we see this all the time, especially with engaged investors that go to conferences and talks. It is completely commendable that you are engaged in what you are doing. But in most instances, what you're going to experience at conferences is a fund manager or professional investor getting up and talking about why what they invest in. So maybe emerging markets, for an example, is the best thing to invest in. The next speaker will get up and say it's Aussie equities because they invest in Aussie equities, then it will be bonds. So take a breath, spend some time thinking about your end goal and what is needed to accomplish it. You'll know you have a well-defined approach when you're able to ignore most of the pitches we are constantly bombarded with.

Jayamanne: Okay, we've reached the last quote. Munger says, envy is a really stupid sin because it's the only one that you could never possibly have any fun at. That's a lot of pain and no fun. Why would you want to get on that trolley?

LaMonica: And this is a great quote. And this one's pretty self-explanatory. Live a life on your own terms that other people can envy. Something that Charlie Munger accomplished. So we've reached the end, Shani. And now you promised that you would tell us your favorite Munger quote.

Jayamanne: All right, I actually have one to add. It wasn't any of those.

LaMonica: Wow, okay. There you go.

Jayamanne: It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid instead of trying to be very intelligent.

LaMonica: That is a good one. And that's a good way to end this, right?

Jayamanne: Yeah, but I do have one more.

LaMonica: Okay, Shani.

Jayamanne: He said, all I want to know is where I'm going to die, so I'll never go there.

LaMonica: Well, that's a little bit sad.

Jayamanne: It is, but he went there.

LaMonica: He went there. Okay, well, there we have it. Lots of Munger quotes, a couple bonus ones from Shani at the end. So remember, go to our resource page that Shani slaved over. And of course, we would love any comments and ratings in your podcast app and share this podcast with your friends. Thank you.

is a Senior Investment Specialist, Individual Investor, Morningstar Australia.

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