Cryptocurrency “isn’t even slightly stupid, it’s massively stupid” says billionaire investor

Charlie Munger had some ripe words to say about cryptocurrency when he addressed a meeting as director of Daily Journal recently (Charlie is Warren Buffett’s business partner and made his billions by choosing his investment carefully over a six decade stretch – and he is still making money and giving good advice aged 99).
Here is what he said:
“Naturally, people like to run gambling casinos where other people lose. The people who invented this crypto crappo, which is my name for it, sometimes I call it crypto crappo and sometimes I call it crypto shit.
“It’s just ridiculous that anybody would buy this stuff. You can think of hardly nothing on Earth that has done more good to the human race than currency, national currencies. They were absolutely required to turn man from a goddamn successful ape into a modern successful humans and human civilization, because it enabled all these convenient exchanges.
“So if somebody says I’m going to create something that sort of replaces the national currency, it’s like saying I’m going to replace the national air. It’s asinine. It isn’t even slightly stupid, it’s massively stupid.
“It’s very dangerous and the governments were totally wrong to permit it. I’m not proud of my country for allowing this crap — what I call the crypto shit. It’s worthless, it’s no good, it’s crazy, it will do nothing but harm, and it’s anti-social to allow it.
“The guy who made the correct decision on this is the Chinese leader. The Chinese leader took one look at crypto shit and said not in my China. And, boom, there isn’t any crypto shit in China. He’s right and we’re wrong. There is no good argument on the other side. I can’t supply it.
“It’s totally, absolutely crazy stupid gambling with enormous house odds for the people on the other side — and they cheat in addition. It’s just crazy.
“That is something that there’s only one correct answer for intelligent people — just totally avoid it. And avoid all the people that are promoting it.”
Personally speaking, when I look at crypto I see nothing there – not a stitch of clothing on the emperor at all. When you are buying nothing in the hope of selling that nothing to another person…well, that is not investing.
Prof Glen Arnold now offers a Managed Portfolio Service at Henry Spain Investment Services under which clients’ portfolios contain the same shares as his (write to Jackie.Tran@henryspain.co.uk)