Robert Herjavec, entrepreneur and star of Shark Tank, has revealed ten transformative lessons he learned from Charlie Munger, the legendary investor and long-time partner of Warren Buffett. These insights, Herjavec explains, helped shape his journey to achieving billionaire status.
The revelations come from Herjavec’s popular YouTube series, Things I Learned from a Billionaire to Become a Billionaire, where he highlights the principles that have guided his business and personal growth.
1. Humility is Key
Herjavec was immediately struck by Munger’s unassuming nature. Despite his immense wealth and success, Munger carried himself with humility. “The first thing you notice about Charlie is the absence of pomp and circumstance,” Herjavec noted. This lesson taught him that true wealth does not need to be flaunted. “If you have to tell people how rich you are, you’re probably not that rich,” he remarked.
2. View Money as a Resource, Not an End Goal
One of Munger’s most profound insights for Herjavec was the true purpose of wealth. Munger emphasised that money should be viewed as a tool, a resource to be used wisely, rather than an end goal in itself.
‘In all our discussions about wealth and money, I never remember him saying how he wanted to make a lot of money,’ For Munger, wealth wasn’t the ultimate objective; it was a means to an end, a tool to facilitate future endeavours. ‘Money is not an end goal,’ says Herjavec. ‘It’s a tool to be mastered to build the life that you want.’
3. Curiosity Drives Success
One of the standout traits of Munger, according to Herjavec, is his relentless curiosity. Munger’s habit of asking insightful questions inspired Herjavec to approach life and business with the same inquisitiveness. “The key to good answers is great questions,” Herjavec said, reflecting on how Munger’s approach sparked deeper conversations and greater understanding.
4. Prepare for the Long Haul
Munger’s advanced age and sharp mind taught Herjavec the value of long-term thinking. “Life is long,” Munger told him. This wisdom shifted Herjavec’s perspective on ageing and emphasised the importance of using time wisely. “You’re never going to be younger than you are right now,” Herjavec reflected, urging others to act with urgency.
5. Simplicity in Business is Essential
Munger advised Herjavec to focus on acquiring businesses that are simple to manage. “Buy a business that can be run by an idiot,” Munger famously said, highlighting the importance of a robust operational structure. For Munger, simplicity reduces the risk of failure and ensures stability.
6. Know Your Strengths
Munger and Buffett’s success lies in their ability to recognise their strengths as investors rather than operators. “You don’t always want to be the smartest person in the room,” Herjavec explained, emphasising the value of self-awareness in leadership.
7. Patience Pays
Munger taught Herjavec the importance of patience in investing. “They rarely made management changes,” Herjavec said, describing Munger and Buffett’s commitment to long-term growth over short-term gains. This philosophy underpins their success in acquiring and nurturing businesses.
8. Simplicity is Hard, But Worth It
Herjavec learned that businesses reliant on unique talent can be risky investments. “Talent walks out the door every single day,” he observed. Munger’s preference for stable, scalable businesses reinforced the importance of simplicity in creating sustainable success.
9. Wealth Equals Freedom
For Munger, wealth is about independence rather than material possessions. “Money is not a Ferrari, although that’s nice too—it’s freedom,” Herjavec quoted. This mindset inspired Herjavec to prioritise financial autonomy over the pursuit of luxury.
10. Resist Over-Indulgence
One of the most impactful lessons Herjavec learned was Munger’s caution against excess. “Just because you can afford it doesn’t mean you should buy it,” Munger said. Herjavec admitted that material possessions often complicate life, sharing how this advice encouraged him to focus on what truly matters.
Herjavec credits much of his success to these timeless lessons from Charlie Munger. By adopting Munger’s principles of humility, curiosity, and simplicity, he not only built financial success but also a meaningful life. For aspiring entrepreneurs, Herjavec’s insights offer a blueprint for achieving wealth while maintaining perspective.
