How Buffett’s number two gossiped about bankers

Charlie Munger

Warren Buffett’s longtime companion Charlie Munger doesn’t believe in Spacs: “The world would be better off without Spacs.”

(Photo: AP)

Denver Charlie Munger doesn’t give up. He is 97, his eyes are no longer the best. But his thoughts are as sharp as ever – so is his tongue. The longtime companion of star investor Waren Buffett also heads the board of directors of the media company Daily Journal from Los Angeles. At the annual general meeting on Wednesday, Munger was also asked about his opinion on the current situation in the markets – and handed it out properly.

A shareholder wanted to know what he thinks of Spacs, the shell companies through which a number of start-ups are currently going public at high ratings. Like Buffett, Munger is a proponent of value investing and likes to buy good companies at low prices. So he’s not a fan of the Spacs boom. “Investment bankers will sell shit as long as you can sell shit,” and clarified, adding, “The world would be better off without Spacs.”

Munger is the deputy chairman of the board of directors of Buffett’s Berkshire Hathaway conglomerate. The two have stayed away from short-lived Wall Street trends for years. Munger looks at hypes with discomfort, as was the case recently with the Gamestop share.

At the moment, “a mentality like horse racing” dominates the stock markets, Munger said in this context. That Robinhood and other brokers would create a culture that encourages simple gambling with stocks is “totally stupid” and “a very dangerous way of investing,” Munger emphasized.

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He demonized Bitcoin as a “rat poison” back in 2018 and his opinion has not changed since then. Whether he thinks it’s crazier that a Bitcoin is worth $ 50,000 today or the electric car manufacturer Tesla A participant at the annual general meeting wanted to know that it has a market value of more than $ 700 billion. “I don’t know which is worse,” Munger replied. However, one thing is certain: “It can only end badly. I just don’t know when. “

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