At the annual shareholder meeting of Daily Journal, 94-year-old Charlie Munger, Vice Chairman of Berkshire Hathaway and longtime partner of Warren Buffett, unleashed a furious tirade against the world's largest cryptocurrency. Speaking on Valentine's Day 2018, Munger did not mince words: "I never considered for one second having anything to do with [bitcoin], I detested it the minute it had been raised. The more popular it got, the more I hated it. It's just disgusting that people have been taken in by this."
Government Should 'Step on It Hard'
During the two-hour-plus Q&A session, Munger touched on a wide range of economic topics, from Wells Fargo regulation to value investing. Interestingly, he defended the embattled bank Wells Fargo, suggesting regulators had already gone far enough. But when the conversation turned to bitcoin, his tone shifted dramatically. "Our more relaxed approach is wrong," he spat. "The right answer is to step on it hard. It's the government's job." He characterized bitcoin as a "noxious poison" and blamed it on "everyone wanting easy money." Munger expressed hope that future generations would reject what he called a "totally asinine" phenomenon.
Clash of Old and New Investment Philosophies
Berkshire Hathaway's stock price routinely trades above $300,000 — no typo. The firm is notoriously tech-phobic, having sat out much of the technology boom over the last quarter century. Munger has been with the company for over four decades, championing value investing: looking long term at good companies an investor can understand. For seasoned investors like Munger, bitcoin is too abstract. Its lack of fundamentals as he understands them — no corporate offices, no accountable board, no large regulatory apparatus — can only spell bitcoin's doom. This tension exemplifies the classic divide in today's investment world: those stuck in old-world success versus those open to a potential shift in the financial guard.
Paradoxically, Munger expressed approval of alternative payment systems such as Tencent's WeChat Pay, which relies on a smartphone app and is widely used in China. This distinction highlights his specific animosity toward decentralized cryptocurrencies. He sees bitcoin as a vehicle for quick riches rather than genuine investment, and urged regulators to treat it accordingly.
Munger's remarks came amid a broader discussion of the economy, bank regulation, and Berkshire's huge $30 billion stake in Wells Fargo. While he defended the bank against over-regulation, his venom for bitcoin was unmatched. As the meeting ended, it was clear that one of the most respected voices in traditional finance remains firmly opposed to the digital currency revolution.