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Most people dream of the big house. The white picket fence, maybe a few extra bedrooms, and a yard big enough for barbecues and kids running around. A nicer home feels like the ultimate milestone — proof you’ve made it. And if a good house makes life better, then surely a sprawling mansion must make it perfect, right?
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Not according to billionaire Charlie Munger, Warren Buffett’s longtime right-hand man at Berkshire Hathaway. Munger, who passed away at age 99, could have afforded any estate he wanted. Yet, just like Buffett, he chose to live in the same modest Los Angeles home for seven decades. And he insisted that decision wasn’t about deprivation — it was about wisdom.
Munger knew real estate better than most. He began his career as a real estate attorney and worked in development before joining forces with Buffett. Over the years, he watched friends become wealthy and build what he called “really fancy houses.” The result wasn’t what people expect. “I would say in practically every case, they make the person less happy, not happier,” Munger said in a CNBC interview recorded just weeks before his death.
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He acknowledged the appeal. A basic house “really helps you,” he said. A huge one? Not so much. “Having a really fancy house, it’s good for entertaining 100 people at once. It’s a very expensive thing to do. And it doesn’t do you that much good.”
His choice to avoid that lifestyle was deliberate. “I decided not to live a life where I look like the Duke of Westchester or something. And I was going to avoid it. I did it on purpose.”
And the ripple effects went beyond his own happiness. Munger admitted he thought a palace-like home might damage the way his children grew up. “I didn’t think it would be good for the children,” he said. “You grow up in a rich family, your duty is to use the wealth and live grandly. That is what everyone is doing with the money. You will learn from people who are doing it.”
It’s a perspective that can feel counterintuitive in today’s market, where buyers stretch their budgets to land bigger homes, convinced more square footage means more satisfaction. Yet Munger’s observation — that mansions can create more problems than joy — speaks to a truth people are still reckoning with.
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And while not everyone can take cues from a billionaire, the frustration around homeownership today is real. With interest rates still high and sellers reluctant to cut prices, buyers often feel stuck in gridlock. Even when you stretch your budget, the cost of repairs and upkeep can pile on fast.
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Munger’s point wasn’t that houses don’t matter. A comfortable, well-kept home can “really help you,” as he put it. But chasing something excessive, whether for appearances or out of the belief it guarantees happiness, often backfires. His friends built mansions; he built stability. In the end, he said, the sprawling estates left their owners less happy, not more.
For anyone caught up in the race for bigger and flashier, his words land like a splash of cold water. Maybe the secret isn’t in buying the fanciest house on the block — but in remembering that even billionaires knew a modest home could be enough.
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This article Billionaire Charlie Munger Said People Think a ‘Really Fancy House’ Is The Key To Happiness, But ‘In Practically Every Case’ It Does The Exact Opposite originally appeared on Benzinga.com
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