Gold is a great thing to sew into your garments if you're a Jewish family in Vienna in 1939, but I think civilized people don't buy gold, they invest in productive businesses.

The quote by Charlie Munger contrasts two different approaches to investment and wealth preservation, using a historical example to make a broader financial point. He acknowledges that during desperate times, such as for a Jewish family in Vienna in 1939, sewing gold into garments was a practical way to protect and transport wealth safely. This reflects the harsh realities and dangers faced during that period when traditional assets could be seized or lost.

However, Munger then shifts to his belief that in civilized societies, wise investors do not simply buy gold as a safe haven but instead focus on investing in productive businesses. This perspective emphasizes long-term growth and wealth creation through enterprises that generate value and contribute to the economy, rather than hoarding precious metals.

Originating from Charlie Munger, a well-known investor and vice chairman of Berkshire Hathaway, this quote reflects his pragmatic and value-oriented approach to investing. Munger’s philosophy favors intelligent, forward-looking investments over reactive or purely defensive strategies.

In summary, the quote uses historical context to illustrate a practical exception but ultimately advocates for investing in productive assets as the best way to build and sustain wealth in stable times. It underscores the importance of understanding the context when choosing investment strategies.