Infomarine On-Line Maritime News - Charlie Munger Said He Was a 'Cautious Little Squirrel Saving Up More Nuts' Than Needed Before Investment Career

Charlie Munger said he moved from law into investing only after years of careful saving because he was cautious, not bold or drawn to big risks.

During an interview at the University of Michigan's Ross School of Business in 2017, then–Berkshire Hathaway Vice Chair Munger said he began practicing law because he had no other option and needed to provide for his five children. He said he went to law school because it was the "least bad" option at the time.

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Answering a question about his shift from law into investing, Munger said he had several years of expenses saved before entering the investment business and did not go all in until he was confident it would work.

"I was not a courageous, venturesome, admirable man," Munger said. "I was a cautious little squirrel saving up more nuts than I really needed and not going very deep into my pile of nuts. It wasn’t that courageous."

‘I Wanted My Own Money'

Munger said he left his law practice because he wanted more independence and freedom. He said he believed the potential of a legal career was limited at the time and did not foresee the later boom at major law firms.

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"I hated sending other people invoices and needing money from richer people," Munger said. "I thought it was undignified. I wanted my own money, not because I loved ease or social prestige, I wanted the independence."

After leaving law, Munger focused full-time on investing through his partnership, Wheeler, Munger & Company. He said that during the 1973–1975 financial crisis, he did not suffer, but watching some of his investors struggle with collapsing stock prices caused him real distress and pushed him to manage only his own money.

"I had $3 million or $4 million, which was a lot of money then, and I also knew how to handle that $3 million or $4 million very well by that time," Munger said. "I knew I didn’t need to get fees and override some other investors. I knew everything was going to work."

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