NEW YORK (Realist English). For many, the dream of success is symbolized by a sprawling mansion — complete with a yard, guest rooms and the white picket fence. But billionaire investor Charlie Munger, Warren Buffett’s longtime partner at Berkshire Hathaway, believed the opposite.
Munger, who passed away last year at 99, lived in the same modest Los Angeles home for seven decades despite being able to afford grand estates. His decision, he explained, was intentional: large houses often reduce happiness rather than increase it.
“I would say in practically every case, they make the person less happy, not happier,” Munger told CNBC weeks before his death, recalling friends who built palatial residences.
The former real estate lawyer knew the sector well. He acknowledged that a simple, comfortable house improves life, but argued that extravagant properties are mainly useful “for entertaining 100 people at once” — an expensive lifestyle with little real benefit.
Munger also worried about the impact on his children, saying that growing up in a mansion could create expectations of grandeur rather than responsibility. “I didn’t think it would be good for the children,” he said.
His philosophy runs counter to today’s real estate market, where rising prices and limited supply drive families to stretch their budgets for more space. Yet Munger’s view resonates with current frustrations: high mortgage rates, repair costs and upkeep burdens make homeownership increasingly difficult.
For Munger, the lesson was clear — stability and simplicity outweighed showmanship. His modest lifestyle demonstrated that even billionaires recognized a larger house does not guarantee greater happiness.
