Charlie Munger, vice chairman of Berkshire Hathaway (NYSE:BRKa) and a longtime associate of Warren Buffett, voiced his criticism of bitcoin and other cryptocurrencies in an interview with the Wall Street Journal today, Sunday. The billionaire investor, who has a net worth of nearly $3 billion, compared the rise of bitcoin to throwing a “stink ball” into the traditional financial system. Munger believes that the financial system is crucial in the transition from primitive societies to advanced civilizations, and sees bitcoin as a disruptive factor.
Recently, Munger’s criticism of cryptocurrencies has intensified, leading him to call for an outright ban on these digital assets. He dismisses them as “gambling contracts” rather than legitimate investments.
In terms of investment advice, Munger suggested that average investors would benefit more from investing in index funds rather than trying to pick individual stocks with no clear advantage. This advice is consistent with his longstanding approach of promoting simple and effective investment strategies over complex and risky ones.
