Charlie Munger, the 99-year-old vice chairman of Berkshire Hathaway and a longtime friend and business partner of Warren Buffett, said he was still a fan of many big bank stocks, even as Berkshire Hathaway reduced its major financial holdings. He also intensified his longstanding criticism of cryptocurrencies.
“Maybe I have different ideas [das de Buffett],” Munger said of bank stocks at the annual meeting of Los Angeles-based newspaper publisher the Daily Journal, of which Munger was chairman until last year. Munger remains chairman of the Daily Journal’s board and is one of its main investors. The meeting was broadcast live on CNBC.
The Daily Journal, like Berkshire Hathaway, is a conglomerate that also owns some individual stocks. The Daily Journal’s portfolio is much smaller than Berkshire’s. But the company has stakes in four notable companies: Bank of America, US Bancorp and Wells Fargo, as well as China’s Alibaba.
Munger said he doesn’t want to sell the Daily Journal’s investment banking because the Daily Journal bought many of the stocks at the bottom during the 2008-2009 financial crisis. Therefore, the company would face a large tax burden in California if it profits from these gains.
“It’s not so bad for us. We are not in a normal position. We are willing to hold them for a while,” she said.
In the interview, Munger, who was casually sipping a Diet Coke (a company that Berkshire shares a major stock in) and munching on peanuts from See’s Candies, owned by Berkshire, was also asked about ChatGPT and how it could impact the news business. of the Daily Journal.
“Artificial intelligence is very important, but there is a lot of hype about it. AI is not going to cure cancer,” he said. “There’s a lot of nonsense in that too. I consider that a mixed blessing.”
Munger on China and Crypto
Munger was also asked about some of the Daily Journal’s investments in China, particularly the suspected Chinese spy balloon controversy and the country’s crackdown on many of its domestic companies.
Munger said he remains optimistic about China’s economy, but admitted that the Daily Journal’s investment in Alibaba was “one of the worst mistakes I’ve ever made”.
“I never stopped to think that [o Alibaba] it was still a retailer. It will be a competitive business,” he said.
Munger was also asked why he (and Buffett) would rather own shares in Chinese electric vehicle maker BYD over Elon Musk’s Tesla.
“BYD is so far ahead of Tesla in China that it’s almost ridiculous,” said Munger. But he admitted that it is an expensive stock. Berkshire reduced its stake in BYD last year.
Munger, who has been a significant critic of bitcoin and other cryptocurrencies, continued his attack on digital assets on Wednesday, continually referring to the cryptocurrency as a four-letter expletive used to describe excrement.
“I think people who oppose my position are idiots,” he said, adding that investors should avoid people who promote cryptocurrencies, saying once again that cryptocurrencies are “useless”, “crazy”, “ridiculous” and “ indescribable”.
Munger also recently wrote an opinion piece for the Wall Street Journal suggesting that the US ban cryptocurrencies.
Investors may hear more from Munger in just a few months. He is due to appear with Buffett in Omaha on May 6 at Berkshire’s annual meeting.
Source: CNN Brasil
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