Warren Buffett's deputy, Charlie Munger, said markets are crazier now than in the dot-com bubble — and he wouldn't want a crypto fan to marry into his family
- Warren Buffett's right-hand man said
marketsare crazier now than during the dot-com bubble.
- "I wouldn't want any one of them to marry into my family," he said of people who invest in crypto.
Warren Buffett's deputy,
"The dotcom boom was crazier on the valuations even than we have now. But overall, I consider this era even crazier than the dotcom era," he said in a Friday interview at the Sohn Hearts & Minds Investment Conference in Australia, according to the AFR.
"You have to pay a great deal for good companies and that reduces your future returns."
The dot-com boom was a period of breakneck growth in technology stocks in the late '90s. Investors poured money into companies with little in the way of revenue or profits, as excitement built around the potential of the internet.
Many investors have compared the current stock market to the dot-com bubble, pointing to companies such as Rivian. The electric-vehicle startup is yet to deliver meaningful revenue but still went public last month. It is now worth $95 billion, making it the world's sixth-biggest carmaker by market capitalization.
The Berkshire executive is a long-running critic of cryptocurrencies and told the conference that he wished digital assets had never been invented. "The Chinese made the correct decision, which is to just simply ban them," he said.
"Believe me, the people who are getting in cryptocurrencies are not thinking about the customer, they're thinking about themselves. Just look at them. I wouldn't want any one of them to marry into my family."
Munger said US millennials are "very peculiar: very self-centered and very leftist."
His comments came a month after
Munger said at the conference that sky-high stock prices meant finding good companies to buy was difficult.
"You want companies that have high earnings on capital and have a durable competitive advantage, and if you can add to that they've got a good management instead of a bad one, that's a big plus too," he said, according to the AFR.
"But what you'll find is that the great companies of the world have been discovered. They're very expensive to buy."
Read more: Table tennis champion Ariel Hsing has been friends with Warren Buffett for more than a decade. She lays out 7 life lessons from the legendary investor, and reveals how being an Olympian helps her at work.
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