Charlie Munger slams Robinhood, questions value of Tesla and Bitcoin: "I don't know which is worse"

When asked about Tesla, which surged more than tenfold last year, and the adoption of Bitcoin by corporations, Charlie Munger said, "I don't know which one is worse."

Charles T. Munger

Charles T. Munger, a long-time partner at Berkshire Hathaway, is renowned for his investment philosophy and his book "Poor Charlie's Almanack," which is considered a classic by countless investors. Even Warren Buffett, the Oracle of Omaha, has said that without Charlie Munger, he wouldn't be where he is today.

At the age of 97, Munger attended the annual shareholder meeting of the Daily Journal on the 24th and was asked about his views on Bitcoin reaching $50,000 and Tesla's market cap hitting $1 trillion. He responded:

It's a little hard to decide. The great Englishman Samuel Johnson once faced a similar question and said, "I cannot determine which is worse, a flea or a louse." In the same situation, I don't know which is worse, Tesla or Bitcoin.

Apparently, this legendary investor may be viewing these two assets, which have performed remarkably well in the past year, as bubbles.

Recognition as a Gold Substitute

Munger was also asked about the threats that banks are facing in today's world, including Bitcoin, as well as the rise of digital payment tools like Apple Pay and Square. He bluntly stated that he doesn't understand how banks and payment systems will evolve, but he is certain that Bitcoin will not make a mark in the payment sector. He pointed out:

I don't think Bitcoin will become a medium of exchange in the world; it's too volatile. It is indeed an artificial substitute for gold, but as I never buy gold, I have never bought any Bitcoin either.

Harsh Criticism of Robinhood

Furthermore, Munger issued a warning to retail investors, stating that novice traders are being lured into a trading bubble by platforms like Robinhood. He remarked:

No one should believe that trading on Robinhood is free. The current speculative frenzy is being driven by commissions and other revenues collected from these new gambler users. This culture of constantly encouraging the public to bet on stocks is truly foolish; it's a very dirty way to make money.