Charlie Munger, aged 99, reflects on the classic quotes of the influential figure in the Berkshire Empire on cryptocurrencies.

Charlie Munger, Warren Buffett's long-time partner, has passed away at the age of 99. In a statement, Buffett expressed, "Without Charlie's inspiration, wisdom, and partnership, Berkshire Hathaway would not be where it is today." Let's take a moment to revisit some of Munger's classic quotes on cryptocurrency!

Berkshire Hathaway with an Annual Return of 20%

Charlie Munger and Warren Buffett, who are seven years apart in age, have built the investment empire Berkshire Hathaway with the core investment philosophy of "buying truly excellent businesses." One of their investments, See’s Candies, initially had an annual pre-tax profit of only $4 million, but later contributed up to $2 billion in sales for Berkshire Hathaway.

Berkshire Hathaway has consistently delivered an annualized return of 20% to investors, refusing to pay dividends and allowing the earned money to grow through compound interest. The stock price has also been climbing steadily, reaching a price level that retail investors find it difficult to buy into. Therefore, in 1996, Berkshire Hathaway split its A shares into B shares, creating BRK.A and BRK.B. B shares do not have voting rights but allow the general public to easily participate in Berkshire Hathaway's growth.

Today, the price of BRK.A has reached $540,000, and in the U.S. stock market, it is purchased on a per-share basis. The quoted price is the price per share, and it cannot be split further. Therefore, buying one share of BRK.A would cost $540,000, while BRK.B, which was initially split at $19, has risen to $360.

Attending the Shareholders Meeting in Person, a Grand Event for Berkshire Hathaway Every Year

Charlie Munger and Warren Buffett attend the annual Berkshire Hathaway shareholders meeting together, which is hailed as the "Spring Festival Gala" of the investment world. The two investment masters eloquently discuss recent economic and investment outlooks, making it a grand event for Berkshire Hathaway every year!

Buffett and Munger's AMA: Master's Views on Recent Financial Events and Latest AI Developments

Recently, Tianxia Culture has also published "The Tao of Munger", which includes his insightful Q&A with shareholders at daily stockholders' meetings from 2014 to 2022, providing a close look at the mindset of this contemporary outstanding investor and understanding how Munger's unique insights have led to his unbeatable investment record. Another book, "Poor Charlie's Almanack," first published in early 2011, has been revised and republished multiple times and is also considered a bible in the investment world.

Munger, Famous for Disliking Cryptocurrency

However, the elderly Charlie Munger has always held a negative view on the rise of cryptocurrencies in recent years. Let's review some of his classic quotes!

February 2021: "I Don't Buy Gold, I Don't Buy Bitcoin Either"

When asked about the threats faced by banks in the current world, including Bitcoin or the rise of digital payment tools like Apple Pay and Square, Munger straightforwardly stated that he does not understand how banks and payment systems will evolve, but he is certain that Bitcoin will not make a difference in the payment field. He pointed out:

I don't think Bitcoin will become a world circulating payment medium; it's too unstable. It is indeed a kind of artificial substitute for gold, but since I don't buy gold, I haven't bought any Bitcoin either.

May 2021: "Inventing New Financial Products Out of Thin Air" Makes Me Sick

I hate seeing the success of Bitcoin; I have no respect for these currencies that are beneficial to kidnappers and ransom groups. I also don't like giving tens of billions of dollars to someone to invent a "new financial product out of thin air." The whole damn development is sickening and goes against the interests of civilization; I'll leave the rest of the criticism to others.

February 2022: China's Ban on Cryptocurrency is a Wise Decision

Imagine a perfect currency used for extortion, kidnapping, regulatory evasion, and other areas. Why would the government accept a technology that cannot be traced and is supported by a group of people who want to get rich quick to enter the payment system? Of course, I hate it very much; people's obsession with Bitcoin is very bad, and China's ban on cryptocurrency is a wise decision.

He is proud of not getting involved in cryptocurrencies, likening it to a kind of disease. When asked about his views on CBDC, he believes that the U.S. already has digital currency, which is "bank accounts."

February 2023: Op-Ed in Media: Why the U.S. Should Ban Cryptocurrency

Charlie Munger published a commentary in The Wall Street Journal titled "Why the U.S. Should Ban Cryptocurrency," explaining his reasons for opposing cryptocurrency. The article states that cryptocurrencies have been publicly traded without prior government disclosure or approval. However, cryptocurrencies are not money, not commodities, and not securities.