Avoid ‘evil’ Bitcoin and stay sane: Investing wisdom from Warren Buffett and Charlie Munger
Categories: Bitcoin US
Warren Buffett has simple advice for investors as they stare down the worst inflation in decades: invest in your own skills.“The best investment by far is anything that develops yourself,” Buffett said at Berkshire Hathaway’s annual shareholder meeting in his hometown of Omaha, Nebraska, on the weekend, the first-time the famed finance event has been held in person since 2019. Buffett, the 91-year-old investment legend known as the Oracle of Omaha, has spent decades building a former textile business into a conglomerate valued at about $US700 billion ($993 billion), with footholds in the insurance market, transportation business and retail. His investing prowess has long attracted a flock of acolytes who hang on his every word for kernels of investing wisdom. Beyond the routine annual meeting protocol and the questions about Berkshire’s businesses, Buffett also used the more than five-hour event to share insights on investing and life. Crypto investing Buffett and Munger, 98, are longtime sceptics of cryptocurrencies, and they once again expressed disdain for the assets.“When you have your own retirement account and your friendly adviser suggests you put all your money into Bitcoin, just say no,” Munger said.Buffett explained that one of his fundamental qualms with Bitcoin and other cryptocurrencies is that the assets aren’t productive like farmland or other real estate, leaving the billionaire investor unsure of what to do with Bitcoin. Munger put it more bluntly.“In my life, I try and avoid things that are stupid and evil and make me look bad in comparison with somebody else,” he said. “Bitcoin does all three.” Politics and business Businesses and executives have increasingly been forced to navigate thorny political issues in recent years. And while Buffett has spoken up for political candidates and campaigned for Hillary Clinton, he’s notably taken a step back on certain hot topics recently. It comes down to the limited upside of wading into controversy, Buffett said. Staying sane Buffett and Munger had some harsh words about the state of the current stock market, with the pair repeatedly comparing it to a casino. Buffett felt the sting of volatile markets in the first quarter. Net earnings dropped more than 53 per cent, due in part to the swings in the company’s $US390 billion stock portfolio. Still, Buffett hasn’t been deterred. Berkshire bought a net $US41 billion of stocks during the first three months of the year, the most in data going back to 2008.“Markets do crazy things and occasionally Berkshire gets a chance to do something,” Buffett said. “It’s not because we’re smart. It’s because the only thing I say we’re qualified on is that I think we’re sane. And that’s the main requirement in this business.”