For Charlie Munger, living in a relatively modest house wasn’t an accident – it was a conscious decision.
Munger, the billionaire investor and longtime business partner of Warren Buffett, died on Tuesday at the age of 99. He previously filmed an in-depth interview with CNBC’s Becky Quick that aired Thursday night, discussing his motivations for living in the same California home for the past 70 years.
“[Buffett and I] “Are they both smart enough to watch our friends who got rich build these really fancy houses,” Munger said. “And I would say in virtually every case they make the person less happy, not happier.”
A “simple house” is useful, Munger said, noting that a larger house can help accommodate more people — but that’s about it. “It’s a very expensive thing and it doesn’t do you much good.”
Another downside to owning a mega-mansion, he added, is that such a display of wealth could spoil his children by encouraging them to “live grandly.” Munger had nine children in two marriages, including two stepsons and a son who died of leukemia at the age of nine.
“[Buffett and I] “They were both thinking about bigger and better houses,” Munger said. “I had a large number of children, so it was even justified.” And I still decided not to live a life where I look like the Duke of Westchester or something. And I wanted to avoid it. I did it on purpose… I didn’t think it would be good for the kids.”
As Munger alluded, Buffett lives a similar life: The 93-year-old billionaire bought his home in Omaha, Nebraska, in 1958 for $31,500 and has lived there ever since. Buffett’s quality of life would be worse if [he] had six or eight houses,” he reportedly said at Berkshire Hathaway’s 2014 shareholder meeting.
Munger often preached about the virtues of living a modest life, offering advice such as “Don’t have much envy” and “Don’t overspend your income.” In Thursday’s interview, he credited his success and longevity to a long-held sense of caution and the ability to “avoid all common types of failure.”
“Avoid craziness at all costs,” Munger said. “Crazy is a lot more common than you think. It’s easy to go crazy. Just avoid it, avoid it, avoid it.”
DON’T MISS: Want to be smarter and more successful with your money, your work and your life? Sign up for our new newsletter!
Get Warren Buffett’s free investing guide from CNBC, which distills the billionaire’s best advice for regular investors, dos and don’ts, and three key investing principles into one clear and simple guide.