“You’re All Idiots,” Says Billionaire Charlie Munger

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Berkshire Hathaway vice chairman and a longtime business partner, Charlie Munger, noted on February 15 that China is still a top priority for investors even with geopolitical prospects.

Charlie Munger downplays risk of Taiwan invasion, says crypto fans are ‘idiots’ https://t.co/QOTdqirDT3 pic.twitter.com/H4hegIxhE2
— Reuters Business (@ReutersBiz) February 16, 2023

Munger recently penned down an op-ed in Wall Street Journal urging that the U.S. government should follow China’s footsteps and ban cryptocurrency noting, ‘’people who oppose my position are idiots.’’

Munger, a 99- year old billionaire, stated in a 2-1/4 hours field of questions at the Daily Journal annual meeting, which he chaired for 45 years and remains as the director. The Daily Journal’s annual meetings typically feature hours of Q&A with Charlie, emphasizing various topics to investors and admirers around the globe. Some topics he could draw attention from include cryptocurrency, investing in China, and market volatility. Last year, Munger stepped down from the Los-Angeles based Daily Journal, where he was a chairman.

However, Munger and his business partner Warren Buffett, 92 years old, have been longtime crypto pessimists asserting that they are not tangible or productive assets. They have been known for their work at Berkshire, where Munger has been a vice chairman since 1978.

Notably, Berkshire has recently minimized multibillion-dollar stakes in two firms, including chipmaker TSMC, also known as Taiwan Semiconductor, and electric car maker BYD Co. Munger has long been bullish on China.

Charlie Munger downplays concerns that China might invade Taiwan

Munger downplayed fears that China might invade China, referring to President Xi Jinping and Russia’s invasion of Ukraine. Munger noted:

The Chinese leader is a brilliant and practical person. Russia went into Ukraine because it looked easy. I don’t think Taiwan looks easy anymore.

The billionaire asserted that it helps investors’ prospects in China because they can buy better, more vital companies at cheaper valuations in the country than in the United States. Additionally, he stipulated that BYD is raising prices while Tesla Inc, owned by Elon Musk is lowering the costs, leaving ‘’BYD ahead of Tesla in China. It is almost ridiculous,’’ he added.

On the other hand, Munger called the TSMC ‘’ the most robust semiconductor platform on Earth,’’ regardless of Berkshire’s recent cut. Previously, it held an 86% stake for $4.1 billion.

What triggered Charlie Munger’s comments

Munger’s comments regarding cryptocurrency were triggered following numerous failures of leading businesses in the crypto space last year. The crypto market lost over $2 trillion last year. The world’s leading cryptocurrency, Bitcoin, plunged 65% in 2022.

In the recent Wall Street Journal editorial, Munger said:

In the previous years, privately owned platforms have provided numerous cryptos, and they have become publicly traded without governmental preapproval of disclosures. Some are sold to a promoter for almost nothing, after which the public buys much higher prices without wholly comprehending the pre-dilution in favor of the promoter.

However, in the CNBC broadcast of the Daily Journal meeting online, Munger stipulated that: