“Crazier than the dot-com boom.“
That was the verdict of the vice president of Berkshire Hathaway BRK.A, +1.18% BRK.B, +1.49%, Charlie Munger, describing existent banal markets and institution valuations retired of interaction with reality, astatine the Sohn Hearts & Minds Investment league successful Sydney connected Friday.
“Some of the valuations we saw successful the dot-com roar were higher,” helium said, according to The Australian Business Review. “But overall, I see this arsenic being adjacent crazier than the dot-com boom, which blew up successful 2000.”
Specifically, Munger said galore U.S. companies were trading 35 times earnings, making it pugnacious for mean investors to get a foothold, with valuations the astir utmost he’d seen successful caller history.
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One banal that is successful favour with Berkshire Chairman Warren Buffett’s close manus antheral is discount retailer Costco COST, -0.82%, which the 97-year aged said helium likes implicit U.S. e-commerce elephantine Amazon.com AMZN, -0.18%. Costco’s concern exemplary is centered connected its lawsuit memberships, which means those going into the stores are buying its products. “I foretell that Costco volition yet go a immense net player,” helium said.
The retailer’s concern exemplary besides helps it to support prices little arsenic it buys successful bulk. “We are each fortunate to person Costco,” helium said. Berkshire owns Amazon, but not Costco.
Munger besides singled retired 1 of Berkshire’s holdings, China electric-car radical BYD 1211, -2.49%, which helium described arsenic “one of the champion companies successful the world.”
He’s besides backing the displacement to renewable energy, specified arsenic upwind and solar. “I emotion the information we’re rapidly reducing the burning of ember and the burning of gasoline and diesel…and replacing them with energy from renewable sources.”
One large dislike that hasn’t changed for Munger is cryptocurrencies, which helium believes “should person ne'er been invented.” China made the close determination to prohibition them, portion the U.S. “has made the incorrect decision” not to, helium said. Bitcoin BTCUSD, +0.53% was trading beneath $57,000 successful the aboriginal hours of Friday, but has astir doubled this year.
English (US) ·