Charlie Munger is known for telling investors exactly what he thinks of popular trends, and that’s exactly what he’s been doing recently Bitcoin (CRYPTO: BTC). In this Fool Live clip, recorded on May 3rd, Fool.com contributors Matt Frankel, CFP, and Jason Moser discuss the Berkshire Hathaway Bitcoin comments from the vice chairman and why he probably won’t change his mind anytime soon.
Matt Frankel: Well, let’s get to the bitcoin part because let’s get that out of the way because I know Jason will be triggered off and offended by these comments.
Jason Moser: Hate mail is directed to Matt Frankel.
Frankel: It is not my words.
Moser: No. That’s right. We only communicate what we have heard. But I thought it would be fun to talk about, so, yeah, let’s dig a little into Munger’s feelings about Bitcoin.
Frankel: First and foremost, Buffett avoided the question, even saying that I was avoiding the question.
Moser: It’s like politics.
Frankel: He fully understands that his opinion on Bitcoin is not popular.
Frankel: Buffett does. Munger has always been an unfiltered speaker. Whatever filter he had now that he’s 97 is gone.
Frankel: He’s already made some pretty nasty comments about Bitcoin over the years. He said, “Of course I hate Bitcoin success.” That’s what he said. He said, “I don’t welcome any currency that is so useful to kidnappers and extortionists, etc. I also don’t like shoving a few extra billions and billions of dollars on someone who has just invented a new financial product out of nowhere.” As if that wasn’t enough, he went on to say that it was “disgusting and against the interests of civilization”.
Frankel: Tell us how you really feel, Charlie.
Moser: These are strong words. Agree or disagree with them, we of course talk about his feelings on this matter and I am sure he is not the only one who thinks that way. But yeah, it seems like he’s opening the invitation to a lot of setbacks from the younger generation of investors who feel too old, he just doesn’t get it, Bitcoin is the future, whatever it is. Everyone has an opinion on this. It’s not that Charlie is just a guy who picked a few stocks and drove that success. He’s helped build something pretty special and pretty meaningful over the past few decades. He knows a thing or two.
Frankel: I don’t want to interfere Twitter War. I know there are many people at The Motley Fool who love and firmly believe in Bitcoin.
Frankel: It’s a very polarizing investment theme.
Moser: Yes. I also find it interesting because you said these were his words, but he calls it currency. There is a debate about currency versus asset. Two very different things. It certainly depends on the perspective of how you look at it, whether it’s an asset, a currency, or something else.
Frankel: Yeah, what I’d say is not to be quick to dismiss Munger as an “OK boomer” or anything. I think he’s actually over a boomer.
Moser: I think you are right.
Frankel: I think the oldest boomers are now over 70, and he’s way beyond that.
Moser: That’s no surprise his feelings on the matter. I would imagine it with things like Dogecoin (CRYPTO: DOGE), just enlarge them and off you go. You may or may not agree with it, but there is clearly more than one opinion on the matter.
Frankel: I saw something on a chat that said you think his comments on Bitcoin are bad, you better be lucky you didn’t mention Dogecoin because it could explode.
Moser: I have a feeling that there will be more things like this in the near future. It will be interesting to see how this market develops.
Frankel: You know what else I noticed, nobody just likes Bitcoin in any way. Everyone either thinks it’s the next big thing in finance or they’re Charlie Munger.
Moser: It’s hard for me to fully understand my head as to why it’s important. I’ve always said and stood by it, bitcoin cops, for me they did a phenomenally terrible job explaining why it matters. I’m not saying it doesn’t, don’t get me wrong, so don’t concern me. I see, I don’t care. I just don’t care about Bitcoin. But what I’m saying is that they explained very poorly why it really matters. You can tell me about decentralized and not hackable, and yadda, yadda yadda. But they just did a very bad job explaining why it really matters. I’m sure from here on we’re going to get a lot of people to explain why it really matters on Twitter and what it doesn’t, that’s fine. But it will be interesting to see how the space evolves because you’re right, it’s either one or the other. You either love it or you hate it, and I might add a third category and I think I fall into that third category, you’re just being apathetic. You just don’t believe in it.
Frankel: I wanted to call you Jason Munger.
Moser: I just don’t care. There is a third category so that I don’t lose sleep over it. If it works out great. When it’s not going well. You know what i know what i don’t know Maybe Munger is proud of me because I realized what I don’t know and that is really one of his most famous quotes. It’s about, “Hey, you know what you don’t know because that’s when real wisdom begins to work.” We will see. A sign of a good investor is the ability to change his mind, so maybe one day he will change his mind, I don’t know. We have to wait and see.
This article represents the opinion of the author who may disagree with the “official” referral position of a premium advisory service from the Motley Fool. We are colorful! Questioning an investment thesis – even one of our own – helps us all think critically about investing and make decisions that will help us get smarter, happier, and richer.