Charles Munger, Vice President of Berkshire Hathaway Inc.
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Charlie Munger, vice president of Berkshire Hathaway and Warren Buffett’s longtime business partner, on Wednesday rejected Tesla’s rising share price and the recent bitcoin frenzy.
During an interview at the Daily Journal’s annual shareholders ‘meeting, Munger was asked if he thought it was crazy for bitcoin to earn $ 50,000 or that Tesla should reach a $ 1 trillion full diluted enterprise value, he said:’ Well, I had the same problems as Samuel Johnson once had when he was asked a similar question, saying, ‘I can not decide on the order of preference between a flea and a louse,’ and I feel the same about the choices . I do not know what is worse. “
Shares in Tesla rose 743% last year, but are currently down about 3% for 2021. Its market capitalization is about $ 689 billion. Bitcoin rose further to more than $ 50,000 last 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 do not think I know what the future of banking is, and I do not think I know how the payment system is going to develop,” he said. ‘I do think that a well-run bank makes a major contribution to civilization and that the central banks of the world would like to control their own banking system and their own money supply.
“So I do not think bitcoin will be the medium of exchange for the world. It’s too volatile to be able to serve well as a medium of exchange. And it’s really an artificial substitute for gold. And since I never buy anything. Gold, I buy never bitcoin. ‘
Munger recommended that others follow his practice.
“Bitcoin reminds me of what Oscar Wilde said about fox hunting. He said it was the pursuit of the unplayed by the unspeakable,” Munger added.
During the same event, Munger also issued a stern warning to novice investors who, according to him, are lured into a trading bubble by programs like Robinhood.
You can see the full interview below.
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