On November 28th local time, the well-known investment company Berkshire Hathaway issued a statement that Charlie Munger, vice chairman of the company's board of directors, died that morning in a hospital in California, USA. He was 99 years old, just one month away from his 100th birthday.
Buffett said in a statement: "Berkshire would not be where it is today without Charlie's inspiration, wisdom and participation." Munger has the reputation of "walking encyclopedia", "behind-the-scenes think tank" and "the last secret weapon". Looking back on Munger's life, many of his investment methods are inspiring.
As a giant in the investment world, Munger has served as the vice chairman of Berkshire Hathaway since 1978 and is well-known for his unique investment philosophy and long-term investment concept. Munger believes that investment is not just a matter of finance, but involves a wide range of fields such as society, psychology and cognitive science. His way of thinking and investment strategy are deeply influenced by these disciplines. He advocates that investors should have the ability to think independently, not be affected by short-term market fluctuations, and adhere to the long-term investment philosophy.
In his 46 years in the field of financial investment, he and Buffett have created the best investment record in history - the face value of Berkshire Hathaway's stock has created an investment myth with an average annual compound return rate of 20.3%. Today, the stock price per share is US$547,000, which is twice the S&P 500 index.
However, as legendary Wall Street investment masters, Buffett and Munger have always expressed their disgust for Bitcoin and cryptocurrencies. Munger published a commentary in February 2023, calling on the United States to follow China's footsteps and introduce relevant regulatory policies to ban cryptocurrencies. He also has a very negative view of Bitcoin and blockchain, viewing it as a joke with no intrinsic value.
Compared with Munger's remarks, Buffett's attitude can even be called mild. As a well-known cryptocurrency skeptic and Bitcoin opponent, Buffett's most well-known remarks in the market are undoubtedly comparing Bitcoin to "rat poison" when the price of Bitcoin was only more than $100.
In fact, Buffett and Munger have a consistent understanding of Bitcoin and cryptocurrencies, because Munger's investment philosophy believes that the desire to get rich overnight is quite dangerous. As for the technical convenience of Bitcoin, they believe that it can be a better way to transfer funds, but anyone can copy it in a lot of different ways, so the idea that Bitcoin has huge intrinsic value is a joke.
In addition, another reason why they do not invest in Bitcoin and cryptocurrencies is roughly the same as that for gold - gold and Bitcoin are non-productive assets, that is, they are not assets that can generate value, and have not yet supported widespread use and demand. Munger bluntly stated that Bitcoin "is a man-made substitute for gold," and Berkshire Hathaway's attitude towards gold has always been not to invest.
But it is worth noting that as early as June 2021, Buffett's Berkshire Hathaway invested $500 million in the Brazilian crypto-friendly company Nubank, causing Nubank's valuation to soar to $30 billion, and in December 2021, it increased its stake by another $250 million. It should be noted that Nubank's crypto-related products include providing Bitcoin ETF product transactions and digital financial services for cryptocurrencies such as Bitcoin.
What is also surprising is that just before his death on October 29, Munger made a rare appearance on the recording of the popular business podcast Acquired, where the host mentioned Bitcoin again and expressed curiosity about Munger's views on a specific angle - that is, "Is it a good thing for Bitcoin to be an independent way of storing value without being linked to the country?"
Unlike his previous fierce words when talking about Bitcoin, Munger's answer this time did not directly mention and criticize Bitcoin, and seemed much milder. He said that the status of the British pound and the US dollar in the international investment field has changed in the past, and it is beneficial for the world to have a widely accepted currency worldwide, and hinted that Bitcoin may become a better way to transfer funds.
Summarize
As the legendary investment guru who "hates Bitcoin the most", Munger's departure is undoubtedly sad. However, it is no longer meaningful to discuss whether Bitcoin is "poison" or whether it will "return to zero".
Fidelity, BlackRock and other Wall Street institutions are competing in the ETF market, which indicates that the tide of the times is rolling in. Looking back in a few years, the year when the Munger legend came to an end may be a new beginning for Bitcoin and cryptocurrencies.
