“
“Think about what Apple is worth compared to the empire of John D. Rockefeller.”
”
This is Berkshire Hathaway BRK.A,
Vice President Charlie Munger, speaking this week about the “frenzy” of the stock market, as exemplified by Apple AAPL,
which he considers “the most dramatic thing that has almost ever happened in the entire history of world finance.”
And it’s not just the appreciation of Apple’s bleeding. Munger, in a remote interview with the California Institute of Technology, scratched his head throughout the bullfight.
“No one knows when the bubbles will explode,” he explained. “Just because it’s the Nasdaq COMP,
it does not mean that it will work again very quickly. This has been amazing. There has never been anything like it. “
Looking ahead to the next decade, Munger does not expect the kind of return investors have had in the last ten years. “The frenzy is so big, and the management systems, the reward systems, are so foolish,” said Warren Buffett’s partner and friend.
Like many bears on the Wall Street market, Munger also questioned how long the Federal Reserve could maintain stock support. “We’re in very unfamiliar waters,” he said. “No one has been able to print money for a very long time without any problems. We are very close to playing with fire ”.
Watch the full interview:
Meanwhile, stocks are still up and running, with the DOW Jones Industrial Average DJIA,
S&P 500 SPX,
and Nasdaq Composite COMP,
they all made strong gains on Tuesday.