Warren Buffett and Charlie Munger Reiterate Harsh Words Against Bitcoin, But it Doesn’t Matter

Warren Buffett and Charlie Munger Reiterate Harsh Words Against Bitcoin, But it Doesn’t Matter

Because as Avichal Garg of Electric Capital puts it, “they were the best investors of the industrial age. But we are now in the software age,” and they are already having a hard time catching up.

Warren Buffett avoided talking about Bitcoin during the recent Q&A session at Berkshire Hathaway’s annual shareholder meeting, saying he doesn’t want to make the herd of longs mad.

However, the “Oracle of Omaha” did agree with Berkshire Vice Chairman and his longtime business partner Charlie Munger’s assessment of the trillion-dollar cryptocurrency.

As for what Munger had to say, which was a lot and not at all positive.

“Of course, I hate the bitcoin success,” said the 97-year-old Munger.

From here, he goes on to point out how Bitcoin is a currency that is useful to kidnappers and extortionists, and he doesn’t welcome such currency, and neither he likes to “just shuffling out of your extra billions of billions of dollars to somebody who just invented a new financial product out of thin air.”

“I think I should say modestly that the whole damn development is disgusting and contrary to the interests of civilization.”

This is no surprise coming from Munger because both he and Buffett have long been criticizing cryptocurrencies. And, of course, the crypto twitter (CT) didn’t like it one bit, to say the least.

While some pointed out how Munger had such harsh words for Bitcoin when the legendary investors themselves were involved with the sugar industry, responsible for obesity and diabetes, others noted that they missed out on the tech stocks as well.

It has only been recently that the duo became bullish on tech stocks and saw valuations of mega-cap as not “crazy” because of incredibly low rates on short-term government debt or Treasuries.

Trader and economist Alex Kruger, saying, “money managers that don’t adapt to technological changes have a hard time outperforming,” which they are currently having.

“They haven’t beaten the market since the market came to be dominated by software. They missed the biggest revolution in business and society since the industrial revolution,” said Avichal Garg of Electric Capital.

“They were the best investors of the industrial age. But we are now in the software age.”

Berkshire, meanwhile, is sitting at a cash pile of more than $145 billion at the end of 2021’s first quarter.

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Author: AnTy

Charlie Munger: Bitcoin is an “Artificial Substitute for Gold,” Recommends Buying Neither

Charlie Munger: Bitcoin is an “Artificial Substitute for Gold,” Recommends Buying Neither

The 97-year old vice-chairman of Warren Buffett’s Berkshire Hathaway also can’t decide which is “worse” Bitcoin at $50k or Tesla at $1 trillion.

Charlie Munger, the longtime business partner of Warren Buffett, recommends against buying Bitcoin or even gold. Munger at the Daily Journal annual meeting on Wednesday said.

“I don’t think bitcoin is going to end up the medium of exchange for the world. It’s too volatile to serve well as a medium of exchange.”

97-year old vice-chairman of Buffett’s Berkshire Hathaway said Bitcoin reminds him of Oscar Wilde’s comment about fox hunting, “the pursuit of the uneatable by the unspeakable.” He has no love lost for bullion either.

“(Bitcoin) is really kind of an artificial substitute for gold, and since I never buy any gold, I never buy any bitcoin. I recommend that other people follow my practice.”

The chairman of Daily Journal, a newspaper publisher and software developer, said, “will not be following Tesla into bitcoin.” Earlier this year, the electric car maker bought $1.5 billion worth of Bitcoin.

As a matter of fact, he doesn’t know which is “worse” — Bitcoin at $50k or Tesla with a fully diluted enterprise value of $1 trillion.

Quoting author Samuel Johnson, “I can’t decide the order of precedency between a flea and a louse.” Munger said, “I feel the same way about those choices,” adding: “I don’t know which is worse.”

This isn’t nothing new; back in 2018, he said trading in cryptocurrencies is “just dementia.”

During the meeting, Munger also had a warning for stock market speculators and criticized trading platforms for enabling them.

According to him, the stock market is bearing signs of a bubble because everybody wants to hold stocks at higher price-earnings multiples when interest rates are low, and he thinks “it must end badly, but I don’t know when.”

He recommended shareholders to be more sensible and not to crowd into stocks just because they are going up and they like to gamble.

Munger likened the Gamestop (GME) traders to those who would bet on racehorses.  He added,

“It’s very dangerous, and it’s really stupid to have a culture which encourages as much gambling in stocks by people who have the mindset of racetrack bettors.”

As for the new type of brokers like Robinhood allowing that to happen, he believes “civilization would do better without it” and “Wise people just stay out of them.”

He then went on to blasting SPACs, saying “the world would be better off without them,” adding: “The investment-banking profession will sell shit as long as shit can be sold.”

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Author: AnTy