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Charlie Munger is rightly recognized as one of the most influential and successful investors of the past century. His investment meetings are renowned for both their wisdom and his candid critique of money-making myths. A notable instance occurred when he likened "get-rich-quick" investment advisors to heroin dealers.

Munger made these remarks during a 2019 Daily Journal shareholders meeting, discussing the impact of social media and day trading on investing. His investment philosophy, shaped by his straightforward upbringing in Omaha, Nebraska, emphasizes a steady approach—buying and holding quality stocks over time as they appreciate.

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This contrasts sharply with the approach of many self-proclaimed online investment gurus, who promise to teach inexperienced investors how to get rich quickly. Munger articulated his view succinctly: "If you take the modern world where people are trying to teach you how to come in and trade actively in stocks, well, I regard that as roughly equivalent to trying to induce a bunch of young people to start off on heroin."

He expressed his fatigue with the proliferation of get-rich-quick schemes online. Munger recognized social media's significant influence on young people's financial decisions and warned of the potential long-term negative impacts. For most individuals, pursuing wealth overnight is a precarious route, often leading to financial ruin rather than lasting prosperity.

While scammers and snake-oil salespeople offering "can't miss investment advice" have always existed, the internet and social media have amplified their reach, enabling them to target more potential victims. Munger viewed this trend as alarming, and he criticized the self-promoting nature of those who position themselves as investment experts.

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In his remarks, Munger noted, "Silly, when you're already rich, to make your money by encouraging people to get rich by trading. There are [also] people on TV who say, ‘I have this book that will teach you how to make 300% a year.' All you have to do is pay for shipping." Given Munger's credentials and famously modest nature, his advice reflects his character as a self-made billionaire from Omaha.

However, Munger's primary concern with investment gurus lies in his belief that many disseminate misinformation and bad advice, leading their followers to financial losses while chasing unattainable dreams. He summed up his perspective by stating, "They mislead you on purpose and I get tired of it. I don't think it's right that we deliberately mislead people as much as we do."

While it may seem harsh for Munger to compare get-rich-quick investment gurus to heroin dealers, his viewpoint is insightful on many levels. The "quick, easy" successes promoted by these online gurus can be addictive, driving investors to take increasingly risky bets in search of a major payoff. Historically, this strategy has led far more investors to financial ruin than success, and Charlie Munger understands this reality.

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This article, "Why Charlie Munger Compared 'Get Rich Quick' Investment Gurus to Heroin Dealers," originally appeared on Benzinga.com.