In one of his final public appearances, billionaire Charlie Munger shared that he stopped carrying fire insurance after getting wealthy, choosing instead to self-insure. Speaking at the 2023 Daily Journal shareholder meeting, Munger explained, “Once I got rich, I stopped carrying fire insurance on houses. I just self-insure.” This was notable given his role as vice chairman of Berkshire Hathaway, a company heavily invested in the insurance industry. Munger was clear that his decision wasn't meant to hurt Berkshire but to reflect his belief in rational risk management. He said wealthy individuals should bypass insurance when they can afford to absorb the loss directly. “Why would you want to fool around with a claims process?” Munger added. However, he stressed this strategy only works for those with the financial means to handle major losses. For most people, especially those with mortgages or legal coverage requirements, insurance remains necessary and unavoidable.