What Can We Learn from the Lives of Charlie Munger and Henry Kissinger?

Charlie Munger, who became a billionaire investor as part of an extraordinarily successful partnership with Warren Buffet, was born in the heartland of Nebraska. Henry Kissinger and his family immigrated to the United States in 1938 to escape Nazi Germany. He was a student and a professor at Harvard, and later became a dominant figure in American foreign policy as secretary of state as well as national security adviser for decades.

Both served in World War II, and both were able to take advantage of opportunities for education and further advancement that America offered its citizens. They seized the opportunity to contribute to our country’s collective power and leverage it to their benefit. Munger invested wisely in promising companies that could be bought at a fair price. Munger’s free market acumen was largely based on what Einstein called the miracle of compounding, or the power of duration. Sometimes as investors, we allow ourselves to fall into the trap of short-term thinking. It is only by thinking long-term that we can ultimately create something worth having when we arrive at our goal.

While this has proven to be a successful approach in investing, it might also be applied to diplomacy where meaningful alliances are forged over time. Unfortunately, many of our nation’s policies aren’t set up to consider the long-term; elections come and go, annual budgets are typically just compared to the previous year, and most of our government’s focus lies in immediate challenges.

However, one enduring rule that remains fundamental over time, is that a country’s power and its citizens’ prosperity are tied together. The spirit of entrepreneurship, which is the engine of America, depends on private investment and individual talent. This creates a strong economy, on which national security, military readiness and diplomatic power depend.

Munger and Kissinger both showed us that when you are the citizen of a country that provides opportunities, whether born here as an immigrant, good fortune is attainable in the short term. Then it is up to the individual to work for enduring success. One thing remains constant in America: people with talent and an appetite for work find opportunity to succeed.

Munger once said that getting to your first $100,000 in savings is the hardest part. Once you have reached this milestone, it becomes easier to acquire more wealth. It’s true that earning money can be hard, but managing it is even harder. It requires a lot of hard work and discipline.

While we face many roadblocks today - rising interest rates, a lingering pandemic threat, tough job market, the specter of a recession and the emotional angst of an upcoming election season – there is always a way forward. It’s why firms like ours exist. It requires helping you put a plan in place, then working hard to see it through while having a day-to-day focus. As long as America is the land of the free and full of opportunity, there is always reason for hope.

Wishing you and your family a joyous holiday season.

Thanks for reading.