Berkshire Hathaway’s Charlie Munger Says Crypto is Worth Nothing and Won’t Touch It
Summary:
- Charlie Munger has warned that crypto is an investment in nothing.
- Mr. Munger also added that he would not touch cryptocurrencies as an investment.
Warren Buffett’s right-hand man and Vice President at Berkshire Hathaway, Charlie Munger, has warned against investing in cryptocurrencies.
Anybody That Sells Crypto is Either Delusional or Evil — Charlie Munger.
Mr. Munger shared his insights into cryptocurrencies in an interview with the Australia Financial Review, where he warned that the ‘crypto craze’ is a ‘mass folly’ and that anyone who sold it was either delusional or evil.
I Won’t Touch the Crypto — Charlie Munger.
He also added that he would not touch cryptocurrencies as he was ‘not interested in undermining the national currencies of the world.’
Furthermore, Mr. Munger recommended that investors should totally avoid crypto as he would ‘never touch it, never buy it.’ He would recommend letting crypto ‘pass by’ since it is ‘is an investment in nothing, and the guy who’s trying to sell you an investment in nothing says, ‘I have a special kind of nothing that’s difficult to make more of.’’
Mr. Munger concluded his advice on cryptocurrencies by stating the following:
“I regard it as almost insane to buy this stuff or to trade in it.”
“I just avoid it as if it were an open sewer, full of malicious organisms. I just totally avoid and recommended everybody else follow my example.”
Inflation Doesn’t Stop Me From Operating — Mr. Munger.
Concerning the ongoing inflation in the US and globally, Charlie Munger pointed out that he has seen plenty of it throughout his life, given that he is 98 years old. From his point of view, inflation does not stop him from operating as he has lived through a lot of it already, nor does it discourage him or stop him from working.
However, he did acknowledge that the ongoing interest rate hikes by Central Banks will significantly impact stock prices and the valuation of businesses. He explained that Berkshire Hathaway had accumulated some cash over the years, but the company had not anticipated the ongoing market drawdowns. He said:
“We didn’t accumulate the cash because we were anticipating a big decline where you can spend it. We accumulated the cash because things got so competitive and prices for good businesses…we couldn’t find any good buy.”
“Of course, we hope that eventually Berkshire will find a good investment for its accumulated cash.”
~ Written by John P Njui ~
