Billionaire investor doesn’t know which is worse: Tesla at $1 trillion or bitcoin at $50,000

Share to friends

Legendary investor Charlie Munger who is the chairman of the Daily Journal’s board headlined the Annual Meeting of Shareholders of the Corporation (DJCO) in Los Angeles on Wednesday February 24.

He fielded shareholder questions on completely different subjects starting from SPACs, the bitcoin frenzy, the rocketing worth of Tesla, and much more.

In one of many questions, the billionaire investor was requested whether or not he thought it was crazier for bitcoin to hit $50,000 or for Tesla to achieve a $1 trillion absolutely diluted enterprise worth, he stated:

“Well I have the same difficulty that Samuel Johnson once had when he got a similar question, he said, ‘I can’t decide the order of precedency between a flea and a louse,’ and I feel the same way about those choices. I don’t know which is worse.”

READ ALSO  The US economy went back to growing in the third quarter of 2022, making an imminent recession less likely

Tesla has been on a roll because the starting of pandemic final yr, with its share worth rising to 743% final yr. Its market cap is presently $689 billion.

Tesla’s CEO Elon Musk‘s whole wealth jumped from $24.6 billion in March 2020 to a document $210 billion in January 2021, making him the richest particular person on the earth for the primary time – a standing he loved until Tuesday when he slipped to the quantity two place after a 3% decline in Tesla’s share. Jeff Bezos took again the primary spot.

Bitcoin alternatively has continued to surge to more than $50,000 over the previous week after Tesla introduced it purchased $1.5 billion value of the cryptocurrency.

Munger, the vice chairman of Berkshire Hathaway and Warren Buffett’s longtime enterprise accomplice, was additionally requested concerning the largest menace to banking, and whether or not it was bitcoin or digital wallets like Apple Pay and Square.

READ ALSO  See photos and details of the $400 million super-yacht rumored to belong to Jeff Bezos

“I don’t think I know what the future of banking is, and I don’t think I know how the payment system will evolve,” he stated. “I do think that a properly run bank is a great contributor to civilization and that the central banks of the world like controlling their own banking system and their own money supplies.”

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

Munger, 97, advisable others comply with his follow. “Bitcoin reminds me of what Oscar Wilde said about fox hunting. He said it was the pursuit of the uneatable by the unspeakable,” he added.

READ ALSO  Jeff Bezos would owe $2B a year in state taxes if Washington passes the proposed wealth tax

Munger additionally warned that novice buyers are being lured right into a buying and selling bubble via apps like Robinhood.

Talking about the recent Reddit-fueled GameStop short-squeeze, Munger stated it is “the kind of thing that can happen when you get a whole lot of people who are using liquid stock markets to gamble the way they would in betting on racehorses.”

He added that the “frenzy is fed by people who are getting commissions and other revenues out of this new bunch of gamblers. And of course, when things get extreme, you have things like that short squeeze.”

Watch the total interview under