Yesterday, November 28, the distinguished American businessman Charlie Munger passed away, long-serving deputy chairman of the board of directors of the well-known investment company Berkshire Hathaway. He was 99 years old and passed away just a month before reaching a century, as he was born on January 1, 1924.
Warren Buffett, CEO of Berkshire Hathaway, noted Munger's significant contribution to the development of the company, emphasizing his inspiring role and wisdom.
According to Forbes as of the end of November 2023, Munger's fortune was estimated at 2.6 billion dollars.
Munger is known for his unique approach to investing, ignoring macroeconomic trends and striving to use all available opportunities to increase capital.
In addition to working at Berkshire Hathaway, he also held leadership positions at media holding Daily Journal Corp. and the Costco retail chain.
Example of Charlie Munger's Effective Investing
Charlie Munger highly rated Berkshire Hathaway's investments in shares of the Chinese electric vehicle manufacturer BYD, considering them the best investment of his career, as reported by CNBC.
He noted that the initial investments in BYD, made in 2008, are now valued at approximately 8-9 billion dollars, representing a significant increase considering the more than 600% rise in the value of the shares over the last 10 years. This occurred against the backdrop of the global electric vehicle market growth.
Munger also compared BYD with Tesla, stating that BYD significantly outpaces Tesla in China. He acknowledged Elon Musk's achievements in the automotive industry but noted that BYD increased its prices in China last year while Tesla lowered them.
In conclusion, Munger emphasized the remarkable success of BYD in the Chinese automotive market, noting their significant revenue and production capacities.
Charlie Munger's View on Cryptocurrencies
Charlie Munger expressed his concern about the increasing popularity of bitcoin. He believed that bitcoin creates confusion and uncertainty in the environment of traditional currencies and assets.
Munger is convinced that the key to the progress of civilization lies in having a stable currency supported by a central bank, whether it be physical objects such as shells or gold coins, or debt obligations.
He compared the introduction of cryptocurrencies like bitcoin to adding a spoiled ingredient to a long-standing, widely used recipe. Munger is known for his criticism of cryptocurrencies and warns that most investors who have invested in bitcoin will ultimately lose their money, calling it "the most foolish investment" he has ever seen.