I don’t know what’s worse

Charlie Munger, Berkshire Hathaway vice-chairman and long-time business partner Warren Buffett, on Wednesday declined the price of Tesla’s rocket share and the recent bitcoin frenzy.

During an interview at the Daily Journal’s annual shareholders’ meeting, Munger was asked if he thought he was crazier for hitting $ 50,000 bitcoin or for Tesla reaching a full $ 1 trillion worth of venture, he said: “Well the one problem I have with Samuel Johnson was at one point when he was asked a similar question, he said, ‘I can’t decide on a priority order between a flea and a lighthouse,’ and I feel the same way I don’t know what’s worse. “

Shares of Tesla rose 743% last year, although it is currently down about 3% for 2021. Its market potential is around $ 689 billion. Bitcoin continued to rise to more than $ 50,000 over the past week after Tesla announced that it had purchased $ 1.5 billion worth of the cryptocurrency.

Munger was also asked what the biggest banking risk was, and whether it was bitcoin or digital wallets like Apple Pay and Square.

“I don’t think I know what the future holds for banking, and I don’t think I know how the payment system will grow,” he said. to think that a properly run bank is a major contributor to civilization and that the central banks of the world are in control of their own banking system and resources. “

“So I don’t think bitcoin is going to end up as an exchange medium for the world. It’s too volatile to serve well as an exchange medium. And it’s really kind of of a fake substitute for gold. And since I never buy any gold, I never buy bitcoin. “

Munger suggested that others follow his practice.

“Bitcoin reminds me of what Oscar Wilde said about fox hunting. He said it’s the pursuit of the unstable by the unbelievable,” he said.

During the same event, Munger issued a stern warning to new investors that he said is lured into trading bubbles through apps like Robinhood.

You can watch the full interview below.

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