Bitcoin is too volatile for it to be a global medium of exchange, Berkshire Vice Chairman Munger said Wednesday at a shareholder meeting of his newspaper company, Daily Journal, which won’t hold bitcoin like tesla does.
He advised investors not to buy bitcoin or Gold.
He said the recent brief short-selling spree at GameStop reflects what happens when investors gamble like they do at the racetrack. Munger says this Culture of encouraging investors to gamble is really stupid. He also said that buying stocks in a frenzy just because they are rising is “a very dangerous way to invest. Luring “gamblers” into the stock market is a “dirty” way to make a profit.
Munger said, in the event of market turmoil, my response is to play it safe. Luring “gamblers” into the stock market is a “dirty” way to make a profit. The Special Purpose Acquisition Corporation (SPAC) boom is a sign of a “stimulus bubble. The world would be a much better place without SPACs. The glut of dirty tricks in the financial system caused novice investors to bring in momentum trades.
Don’t think that brokerage Robinhood is really a free service, he said. When asked about the biggest lie in the investment world right now, Munger said it is most likely zero commission trading, which is not actually free.
In addition, Munger said there is no bubble in U.S. Treasuries and that value investing is “not going out of style.
Munger said he and Warren Buffett are better at analyzing mature industries than backing startups, including Sequoia. For some investors, early investment may be the best strategy, while for others, I have been engaged in my Life may be the best solution.
For the electric car industry, Munger said he does hold BYD on a rare occasion and is still in the understanding stage of the electric car industry.
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