Charlie Munger, the legendary investor and vice chairman of Berkshire Hathaway Inc (NYSE:BRK) (NYSE:BRK), passed away at 99 on Tuesday, leaving a legacy of critical views on Bitcoin (CRYPTO: BTC), a sentiment he shared with his longtime business partner, Warren Buffett.
Despite their shared disapproval, Munger and Buffett had distinct reasons for their skepticism, often expressed during Berkshire Hathaway’s annual shareholder meetings, affectionately dubbed the “Woodstock for Capitalists.”
These gatherings were a magnet for investors worldwide eager to glean wisdom from the duo, who boasted a remarkable 20% average annual return since 1965, far surpassing the S&P 500’s 10.5% average.
Differing Crypto Critics: During the 2021 shareholder event streamed by Yahoo Finance, Munger vehemently expressed his disdain for Bitcoin, deeming its success “detestable.”
“I don’t welcome a currency that’s so useful to kidnappers and extortionists and so forth. Nor do I like shuffling out a few extra billions and billions of dollars to somebody who just invented a new financial product out of thin air.”
Buffett, however, offered a contrasting perspective during the same event. He emphasized the value of tangible, productive assets, illustrating with an example.
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How Their Views Differ: Buffett stated he would pay $25 billion for a 1% stake in all U.S. farmland or apartment buildings due to their ability to generate food and rental income. In contrast, he found no appeal in owning Bitcoin.
“If you said … for a 1% interest in all the farmland in the United States, pay our group $25 billion, I’ll write you a check this afternoon,” Buffett had said. “[For] $25 billion I now own 1% of the farmland. [If] you offer me 1% of all the apartment houses in the country and you want another $25 billion, I’ll write you a check, it’s very simple.”
The “Oracle Of Omaha” went on to add: “Now if you told me you own all of the bitcoin in the world and you offered it to me for $25 I wouldn’t take it because what would I do with it? I’d have to sell it back to you one way or another. It isn’t going to do anything. The apartments are going to produce rent and the farms are going to produce food.”
Upon hearing Buffett’s valuation method…
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