Equity advocate and Warren Buffett’s business partner Charlie Munger took another plunge into the crypto industry. This time he compared crypto to an “open sewer full of evil organisms.”
In a recent interview with the Australian Financial Review, Munger warned investors not to put their money in crypto, claiming the “crypto craze” is a “mass folly”. He said, “I think anyone selling this stuff is either delusional or bad. I won’t touch the crypto.” Munger added, “I’m not interested in undermining the world’s national currencies.”
Following this, the 98-year-old billionaire advised that “total avoidance is the right policy” when dealing with crypto, further suggesting that investors should “never touch it, never buy” and just “let it pass”.
While it’s a sensible alternative to throw those stock or equity investments into real cash-generating companies, Munger again mocked the digital asset industry, saying “crypto is an investment in nothing, and the guy trying to sell you an investment in nothing says, ‘I have a special kind of nothing that is hard to make more of'”.
After his anti-crypto comments, he added: “I don’t want to buy anything, even if someone tells me they can’t make more of it. I consider it almost insane to buy or trade this stuff. I just avoid it like it’s an open sewer, full of evil organisms I just avoid it completely and advise everyone to follow my lead.
Munger Criticizes Crypto Investments, But High Net Worth People Can’t Agree
On the one hand, Munger can equate crypto to “open sewers” or “venereal diseases,” which matches Buffett’s comments about “rat poison” about the industry. On the other hand, Warren Buffett’s Berkshire Hathaway dumped its Visa and Mastercard holdings earlier this year, further reassign $1 billion in funds to the pro-Bitcoin Nubank.
Moreover, despite criticism from players with deep pockets on crypto, a recent report published by Capgemini revealed that 71% of high net worth individuals (HNIs) worldwide have invested in digital assets and 91% of HNIs under the age of 40 have made investments in digital assets, highlighting that “cryptocurrencies are their preferred investment in digital assets” .