Charles Munger, vice president of Berkshire Hathaway Inc.
Jonathan Alcorn | Bloomberg | Getty Images
Charlie Munger, vice president of Berkshire Hathaway and longtime business partner of Warren Buffett, on Wednesday rejected the rocket of Tesla shares and the recent bitcoin frenzy.
During an interview at the Daily Journal’s annual shareholders’ meeting, Munger was asked if he thought it was crazier for Bitcoin to reach $ 50,000 or for Tesla to reach a fully diluted $ 1 trillion business value, he said. : “Well I have the same difficulty as Samuel Johnson, once he had a similar question, he said, ‘I can’t decide the order of precedence between a flea and a louse,’ and I feel the same with those options.”
Tesla shares soared 743% last year, though they are currently down about 3% by 2021. Its market capitalization is about $ 689 billion. Bitcoin continued to rise to more than $ 50,000 last week after Tesla announced it was buying bitcoins worth $ 1.5 billion.
Munger was also asked what the biggest threat to banking is and whether it was digital or bitcoin banknotes like Apple Pay and Square.
“I don’t think I know what the future holds for banking and I don’t think I know how the payment system will evolve,” he said. “I believe that a properly managed bank is a major contributor to civilization and that the world’s central banks like to control their own banking system and their own money supply.
“So I don’t think Bitcoin ends up being 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 never in I buy a golden head, I never buy bitcoins “.
Munger recommended that others follow his practice.
“Bitcoin reminds me of what Oscar Wilde said about fox hunting. He said it was the search for the unbelievable for the indescribable,” Munger added.
During the same event, Munger also issued a terrible warning to novice investors who said they are feeling trapped in a commercial bubble through apps like Robinhood.
You can watch the full interview below.
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