Charlie Munger Pockets $70,000 a Year From a $1,000 Investment He Made in 1962

Charlie Munger made a $1,000 investment over six decades ago.

[{"selector":"#anim-40f2b1b6-eec5-4665-b23d-3c18bbbe8cf7","keyframes":{"opacity":[0,1]},"delay":250,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}]

His investment in oil royalties now generates an annual income of $70,000, possibly totaling over $1 million in earnings.

[{"selector":"#anim-297cdddc-8437-45da-a213-0f009dc35ce1","keyframes":{"opacity":[0,1]},"delay":250,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}]

Munger's investment journey began in 1962 when he met Al Marshall during a golf tournament.

[{"selector":"#anim-e61f2ed3-6376-400b-95d5-eaaeafca3829","keyframes":{"opacity":[0,1]},"delay":250,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}]

Munger and Marshall each invested $1,000 and made substantial returns, with Munger corroborating this story in a shareholder meeting.

[{"selector":"#anim-42264a5f-daa0-4169-8936-ec86f946f65c","keyframes":{"opacity":[0,1]},"delay":250,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}]

The oil royalty market had peculiar dynamics, attracting scroungy brokers.

[{"selector":"#anim-12440d21-c216-4548-8115-4c9ecc1d971c","keyframes":{"opacity":[0,1]},"delay":250,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}]

Munger holds the majority of his fortune in Berkshire stock, which does not pay dividends.

[{"selector":"#anim-a8c6685c-cf0d-413f-8190-6e78a2e20c83","keyframes":{"opacity":[0,1]},"delay":250,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}]

Munger's journey from a $1,000 investment to a consistent annual income of $70,000 demonstrates the power of long-term investments and compounding.

[{"selector":"#anim-65321e8b-1e3d-44c6-aa4e-b989db124306","keyframes":{"opacity":[0,1]},"delay":250,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}]