06/14/2026
This powerful statement comes from Charlie Munger, the late vice chairman of Berkshire Hathaway and Warren Buffett's longtime partner and intellectual sparring partner. It appears in various forms across his speeches, interviews, and writings, including echoes in Poor Charlie's Almanack (2005), where his ideas on worldly wisdom and investing were compiled. Munger often used it to contrast true long-term investing with frantic trading.
The concept draws inspiration from earlier market wisdom, including Jesse Livermore's 1923 classic Reminiscences of a Stock Operator, but Munger refined and popularized it through his own experience at Berkshire Hathaway. There, he and Buffett built extraordinary wealth by holding high-quality businesses for decades rather than chasing short-term trades.
Munger emphasized that most people fail to capture big gains because they can't tolerate inaction. He pointed to Berkshire's massive successes, like investments in Coca-Cola, American Express, and See's Candies, where the real profits came from years of compounding, not frequent buying and selling.
In one reflection, Munger noted how patience aligns with the power of compound interest, something he called one of the wonders of the world. He believed waiting lets quality businesses grow intrinsically while avoiding taxes, transaction costs, and emotional mistakes that plague active traders.
Munger's insight remains a cornerstone of disciplined investing. True wealth builds quietly over time through holding great companies, not constant activity.
What's one investment you've held through ups and downs that rewarded your patience? Share below.
