"The 97-year-old Charlie Munger is best known for his work as Vice Chairman of Berkshire Hathaway, where he has served as Buffett's right hand man for decades.
... Among the myriad topics covered in Mungers marathon, 2-hour presentation, the 97-year-old reflected on the crazy price moves in companies like GameStop, and said the prevailing attitude in the US equity market as a "horse-racing mentality toward stocks."
“It’s really stupid to have a culture” encouraging such gambling in stocks, Munger said, calling the frenzied buying of stocks “a very dangerous way to invest."
... he left with a stark warning: Commission-free trading isn’t free.
Naturally, Munger also railed against Bitcoin (and gold), saying Berkshire wouldn’t follow Tesla into the cryptocurrency, and that it’s too volatile to be a true medium of exchange for the world.
... In response to a question on which is crazier, Bitcoin at $50,000 or Tesla’s fully diluted enterprise value on $1 trillion, Munger said “I don’t know which is worse."
... So far in 2021, 144 SPACs have gone public — averaging roughly five per trading day — raising a total of $44 billion.
Just seven weeks into the year, this represents more than half the totals in 2020, which itself witnessed a 5x increase in SPAC activity relative to 2019
Taking a shot at the SPAC scramble that is being stoked by both frenzied buyers and rabid bankers, Munger lamented that "the investment banking profession will sell shit as long as shit can be sold."
As to how all this stock speculation might end ... He said it’s best to stay out of the fray, which is what he’s doing: “Yes, I think it must end badly, but I don’t know when."
As Bloomberg summarized, overall it was " quite the event" with Munger still as sharp as ever though, and once he got on a roll, he opined on everything from the Reddit stock boom to China, and he even touched on personal questions like how to live a fulfilling life."
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