Charlie Munger is an American investor, businessman and philanthropist. He is vice chairman of Berkshire Hathaway, the conglomerate controlled by Warren Buffett. Munger served as chairman of Wesco Financial Corporation from 1984 through 2011. He is also the chairman of the Daily Journal Corporation, based in Los Angeles, California, and a director of Costco Wholesale Corporation. In March 2016, Munger announced a further $200 million gift to UC Santa Barbara for state of the art student housing, tripling the record gift he gave for the Kavli Institute for Theoretical Physics.
Charlie Munger about Bitcoin
Munger was asked for his views on cryptocurrencies during a University of Michigan’s Ross School of Business event. Warren Buffett’s business partner Charlie Munger warrns savvy investors that the controversial digital currency BTC is “total insanity,” and to avoid it “like the plague.” The interview was posted Wednesday on the business school’s YouTube channel. The event was held in LA on Nov. 30 for the school’s alumni. The video has largely gone unnoticed with roughly 7,000 views as of Friday morning.
The 93-year-old billionaire investor further explained why bitcoin is not a replacement for gold:
“You know it is one thing to think gold has some marvelous store of value because man has no way of inventing more gold or getting it very easily, so it has the advantage of rarity. Believe me, man is capable of somehow creating more bitcoin. … They tell you there are rules and they can’t do it. Don’t believe them. When there is enough incentive, bad things will happen.”(cnbc.com)
“There’s just a whole lot of things that aren’t going to work for you. Figure out what they are and avoid them like the plague. And one of them is bitcoin. … It is total insanity.” (newsmax.com)
The bubble almost burst
The price of bitcoin declined 28 percent to below $12,000 Friday, according to Coinbase. Despite the sharp drop, the digital currency is still up about 1,100 percent this year. Bitcoin has fallen each day since then, with losses accelerating on Friday. At 0850 GMT it was trading down 15 percent on the day at $13,320 and was heading for its worst day in more than three months.
Here is the interview with Charlie Munger:
Interview Date: 20th December, 2017 Event: Michigan Ross