94-year-old, Charlie Munger is Berkshire Hathaway’s vice chairman and the right-hand man of Warren Buffett. He is known to give his overview of things economic in the Daily Journal’s annual shareholder meeting. This year he took this opportunity to share his thoughts on the world’s most popular cryptocurrency, bitcoin. Seasoned investors like Mr. Munger find bitcoin too abstract and he made sure everyone knew this. According to him Bitcoin’s lack of basics like no corporate offices, no large regulatory apparatus, no accountable board, etc. can only assure its doom.
Mr. Munger’s Thoughts
Mr. Munger did not shy away in his speech when talking about Bitcoin: “I never considered for one second having anything to do with [bitcoin], I detested it the minute it had been raised. The more popular it got, the more I hated it. It’s just disgusting that people have been taken in by this.”
The interview style question and answer period, lasted over two hours where he discussed myriad economy-related questions and subjects. He said that when it came to bitcoin, their more relaxed approach is wrong. He added “The right answer is to step on it hard. It’s the government’s job,” characterizing it as a “noxious poison.” He did not have a problem with alternative payment systems and gave a nod to the popular smartphone application based in China, We Chat. But bitcoin, he said, was an affliction of “everyone [wanting] easy money,” and “[hoped] to God” the future generation doesn’t embrace it, as it is “totally asinine.”
Berkshire Hathaway’s stock price trades routinely at over $300,000. The firm is notoriously tech-phobic and has previously sat out plenty of the technology boom over the last quarter century. Mr. Munger has been involved with the company for over four decades, championing value investing – looking long term at good companies an investor can understand.