Charles Munger, Vice Chairman of Berkshire Hathaway Inc.
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Charlie Munger, vice chairman of Berkshire Hathaway and Warren Buffett’s longtime business partner, on Wednesday dismissed Tesla’s surging stock price and the recent bitcoin frenzy.
During an interview at the Daily Journal’s annual shareholder meeting, Munger was asked if he thought it was crazier for bitcoin to hit $ 50,000 or if Tesla would hit $ 1 trillion in fully diluted corporate value. Johnson once when he got a similar question, he said, “I can’t rank between a flea and a louse,” and I feel the same about those choices. I don’t know what’s worse. “
Tesla’s stock shot up 743% last year, although it is currently down about 3% for 2021. Its market capitalization is about $ 689 billion. Bitcoin continued to rise to over $ 50,000 over the past week after Tesla announced it had bought $ 1.5 billion worth of bitcoin.
Munger was also asked what the biggest threat to banking is, and whether it was bitcoin or digital wallets like Apple Pay and Square.
“I don’t think I know what the future of banking is, and I don’t think I know how the payment system will evolve,” he said. “I really think that a well-run bank makes a great contribution to civilization and that the central banks of the world like to control their own banking system and their own money supplies.
So I don’t think bitcoin will become the world’s medium of exchange. It’s too volatile to be a good medium of exchange. And it’s really some kind of artificial substitute for gold. And since I never buy one. bitcoin. “
Munger advised others to follow his practice.
“Bitcoin reminds me of what Oscar Wilde said about the fox hunt. He said it was the hunt for the inedible by the unspeakable,” Munger added.
At the same event, Munger also issued a dire warning to budding investors he believes are lured into a trading bubble through apps like Robinhood.
You can watch the full interview below.
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