Charlie Munger, billionaire investor and Vice President of Warren Buffett’s Berkshire Hathaway investment conglomerate, has reiterated his hardened stance against cryptocurrencies.
Why Charlie Munger Won’t Touch Crypto
During an interview with the Australian Financial Review recently, Charlie Munger did not mince words when it came to describing his feelings on the crypto industry. This time he urged investors to buy shares of firms that have “real interest in real businesses” instead of cryptocurrencies.
As you already know, crypto has become gradually embedded within the global financial system in recent years, with over a handful of formerly skeptical institutions and renowned investors dipping their toes in the crypto water. Nonetheless, the Berkshire executive reiterated that he won’t “touch” the asset class, adding that “anybody that sells this stuff is either delusional or evil”.
That said, in the same interview, Munger elaborated on why he doesn’t see value in crypto.
“Crypto 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.”
The 98-year-old investor said the asset class is nothing more than an “open sewer full of malicious organisms.” As such, he recommended investors avoid the “mass folly” completely. Munger also stressed that he’s not interested in weakening national fiat currencies by investing in cryptocurrencies.
Bitcoin Skepticism Isn’t A New Position For Buffett And Munger
Munger and his long-time partner Buffett have long stayed at arm’s length from bitcoin. So Munger’s recent verbal attacks on crypto are nothing new.
Earlier in 2021, Munger labeled bitcoin “too volatile” to be considered a global medium of exchange. He later said he wished cryptocurrencies were never invented and praised China for outlawing them.
Meanwhile, Warren Buffett has referred to bitcoin — which is certainly gaining acceptance on Wall Street and beyond as a reputable and sound investment — as “rat poison squared” and an instrument for gambling.