Time, Not Money, Made a 24-Year-Old the Richest Man in the Room
Charlie Munger told a 24-year-old with one Berkshire share that he would compound for 70 years, and that he only needed to get rich once.
David Senra · Lessons From Backing The Best Founders In Fintech | Micky MalkaAfter a meeting at Happy Hollow Golf Club, Micky Malka, the fintech investor who founded Ribbit Capital, was sitting by himself when investor Charlie Munger sat down next to him.
The room was full of famous business leaders. Bill Gates was there, along with the chief executives of large companies. Malka, then 24 or 25, owned just one share of Berkshire Hathaway. He later said he was "the youngest guy by an order of magnitude."
Munger looked at him and said, "You must be very wealthy to be here." Malka answered, "Actually, no. I only own one share."
Munger answered, "You don't get it. You are the wealthiest guy in the room." He said Malka had what the older men there no longer had: "You have the power of time. All of us here are in our last chapter. You're just starting your time. You will compound for the next 70 years of your life."
Malka started to say Munger was wrong. Munger answered with a rule, and then ended the conversation.
"You only need to get rich once," he said. "And now I'm going to eat." He sat down and ate.
In telling the story, Malka put the lesson in his own words. Time, he said, is "the only true currency you have."
Questions people ask
Who was Charlie Munger?
Charlie Munger was Warren Buffett's longtime business partner and vice chairman of Berkshire Hathaway. He was known for blunt wisdom about investing, patience, and rational thinking. He died in 2023 at age 99.
What does it mean to compound for 70 years?
Compounding means earnings generate their own earnings, so growth accelerates over time. An investment growing at 10 percent a year roughly doubles every seven years. Over 70 years, that snowball effect can turn even modest early savings into a very large sum.
What is Ribbit Capital?
Ribbit Capital is a Silicon Valley investment firm founded by Micky Malka that focuses on financial technology. Its investments have included Robinhood, Revolut, and Nubank. Malka started the firm after building companies in Latin America and the United States.