On January 2, 2022, Charlie Munger stated that he hopes that cryptocurrency “has never been invented” and admires China’s ban on cryptocurrency. His attitude towards Bitcoin has always been disgusting, and he said that he would never buy cryptocurrencies, hoping that they have never been invented.
He is now more than ninety years old, a rational, humble and low-key person, and is worshipped and admired by the world. In order to avoid making mistakes, he devoted himself to doing more right things through reading, and even studied the “psychology of misjudgment.”
He said, “There are no smart people I have met in my life who read every day—no, none of them.”
He who loves to read so much, why does he hate Bitcoin?
Before meeting Buffett, he was a lawyer and also an investment
Munger and Buffett are each other’s soul mates. Together, they have created a myth in the investment world. But in fact, they had an intersection when they were young. It was Grandpa Buffett’s shop, and they both worked here.
Perhaps, they can work long hours later because of this. The store requires young employees to work 12 hours a day, neither eating nor resting.
In the 1930s, under the influence of the Great Depression, people’s lives in Omaha, where Munger was located, also became difficult. But Grandpa Munger helped some distant relatives to tide over the difficulties. From this, Munger realized that as long as they support each other, the Munger family can survive the worst economic collapse in American history.
This is probably the reason why he and Buffett can support each other through more than 60 years of ups and downs. In addition, Munger also understands the value of financial independence through his own work to earn pocket money.
After graduating from high school, he entered university. But in his sophomore year, due to the need to recruit people of the right age into the army during World War II, he enlisted in officer training and studied meteorology.
During this period, he was transferred to different universities to study, but none of them obtained a degree. When the war was over, he didn’t have the advantage when he applied to Harvard Law School, but the former dean of the law school was his family’s acquaintance, so he interceded with him, and the admissions office agreed that he would start as an undergraduate. When he graduated, he became one of 12 outstanding graduates, while there were a total of 335 students in the same period.
Munger’s father was a lawyer, but when discussing future development, they agreed that they should go to the big city for development. Therefore, Munger went to Southern California alone to start his career.
Lawyers charge on time and are related to seniority. He wanted more income, so he began to involve investment. However, he kept in mind his grandfather’s teaching: focus on the current task and control expenditure. In this way, he seized many opportunities to make a fortune. For example, investing in the stock market, and therefore, also generates gain value for customers.
In 1961, he started investing in real estate, developing apartments with friends, investing 100,000 US dollars and making a profit of 300,000 US dollars. After tasting the sweetness, he quickly invested in real estate development and got bigger and bigger. By 1964, this investment had brought in revenue of $1.4 million.
He wants to set up a new law firm, but he is also considering an exit plan, and he also wants to invest in a partnership company. At this time, he needed to go back to his hometown to handle his father’s funeral. In this way, he met Buffett.
The two “love at first sight” and cherish each other. Later, they began to bond deeply and achieve each other’s achievements.
Choosing the right person not only achieves both sides, but also creates myths
Munger and Buffett talked about everything, including business, finance, and history. Buffett believes that Munger can treat lawyers as a hobby, and can engage in more profitable things, such as his own investments.
For Buffett’s acquisition of the company, Munger Law Firm is a consultant, and at the same time, Buffett also brings high-end clients to Munger.
Munger said, “Don’t just look at money”, but “choose those customers you are willing to make friends with.” He has a set of his own theoretical guidance, so his company such as Wheeler Munger’s 14-year average compound return rate increased to 19.8%, while the Dow in the same period only 5%.
Although the returns were good, there was a big bear market in 1973 and the following year. The company experienced some ups and downs, and finally Munger closed the company and chose to partner with Buffett.
After Munger’s liquidation, the shares were converted to Berkshire Hathaway shares, and the closing price at the end of 1975 was $38. By 2005, the price per share exceeded 85,000 US dollars.
Buffett is known as the god of stocks. For example, he invested 120 million in Coca-Cola in 1980. Five years later, its stock price has doubled by five times. And how much he earned is staggering. Of course, his investment in companies such as GEICO and American Express has also become a classic case.
But he said, “Munger designed Berkshire Hathaway today. This is his most important achievement. The blueprint he gave me is very simple, that is,’Investing in a good company at a bargain price is better than using a cheaper one. The result of buying an ordinary company at a price is much better…’ In this way, Berkshire Hathaway was established in accordance with Munger’s blueprint. My role is the general contractor, and Berkshire Hathaway’s subordinates The CEO of the company is a subcontractor.”
Therefore, Munger is also known as the man behind Buffett. He said that by doing the right thing all the time, you can gradually gain the trust of your customers. Then, he practiced it all his life.
In order to avoid making mistakes, he read a lot for a long time, and even summed up the “psychology of misjudgment.” He said, “There are no smart people I have met in my life who read every day—no, none of them.” Once, he missed the plane and was not in a hurry, so he just took out a book and started reading.
He is low-key, loves to learn, and thinks well, so he has become Buffett’s super think tank. Coupled with Buffett’s unique and peculiar investment vision, the two have created the myth of the investment industry and achieved each other.
Munger hates Bitcoin’s voice
In recent news, Munger said that he hopes that cryptocurrency “has never been invented” and admires China’s ban on cryptocurrency. In fact, his attitude towards cryptocurrency in public is not supportive.
In May 2021, Munger stated at the shareholders’ meeting that he hated the success of Bitcoin, thinking that its development is disgusting and runs counter to the interests of civilization.
In February, he stated at the “Daily Daily” annual shareholder meeting, “Bitcoin is actually an artificial substitute for gold. I never buy gold, and I never buy Bitcoin. I suggest others follow my example. Practice.” One of the factors that thinks this way is that Bitcoin is volatile and not suitable as a medium of exchange.
In 2018, he said that the Bitcoin craze was particularly stupid. “I never considered investing in any Bitcoin. I hated it when it appeared. The hotter Bitcoin is, the more I hate it.”
As his partner, Buffett’s views on Bitcoin are consistent with him. Even at the Berkshire Hathaway shareholders meeting in 2013, Buffett mentioned his dislike of cryptocurrencies, thinking that cryptocurrencies are a bubble and illusion.
Munger once said that the desire to get rich overnight is quite dangerous. As for the cryptocurrency represented by Bitcoin, most people come to get rich overnight.
But he also said that life is a long-lasting game, accept life and do everything in its power. If you can live to a great age, you will have many opportunities. There may be two opportunities in total, but it is good to seize one of them.
Although he is not optimistic about cryptocurrency, if you think this is an opportunity and can seize it, it is also good. Just like the fishing principle: one is to fish where there are fish, and the other is not to forget the first principle.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/i-hate-bitcoin-but-he-has-pursued-the-right-thing-all-his-life/
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