The investment world mourned the passing of Charlie Munger on November 28, 2023, just one month shy of his 100th birthday. As Berkshire Hathaway's vice-chairman and Warren Buffett's longtime partner, Munger leaves behind a legacy of wisdom that shaped modern value investing.
The Investment Philosophy of a Legend
For 46 years, Munger worked alongside Buffett to achieve what many consider the greatest investment track record in history - Berkshire's stock grew at an astonishing 20.3% annual compound rate. His approach blended:
- Multidisciplinary thinking: Integrating psychology, economics, and cognitive science
- Long-termism: Resisting short-term market noise
- Value focus: Investing only in assets with demonstrable intrinsic worth
This philosophy explains his skepticism toward Bitcoin and cryptocurrencies, which he famously called "a joke without intrinsic value."
Munger's Evolving Perspective on Digital Assets
While maintaining his fundamental doubts, Munger's final public comments revealed nuanced considerations:
- Regulatory Concerns (February 2023):
Publicly supported crypto bans, praising China's restrictive approach - Technological Utility (October 2023 Podcast):
Acknowledged potential as "a better way to transfer money"
Suggested global reserve currencies historically shift (e.g., pound → dollar) - Institutional Contrast:
Berkshire quietly invested $750M in crypto-friendly Nubank despite public criticism
Why Bitcoin Clashed With Value Investing Principles
Munger and Buffett's resistance stemmed from core tenets:
| Traditional Investing | Bitcoin Characteristics |
|---|---|
| Productive assets | Non-productive asset |
| Cash-generating | No revenue streams |
| Tangible value | Subjective valuation |
| Regulatory clarity | Evolving oversight |
As Munger quipped: "Gold's artificial substitute" couldn't meet their standards for wealth creation.
The Institutional Shift Munger Witnessed
In his final year, the investment landscape displayed ironic contrasts:
- Berkshire's Stance: Continued avoidance of direct crypto exposure
- Wall Street's Move: Fidelity and BlackRock racing to launch Bitcoin ETFs
- Market Reality: Bitcoin surviving multiple "rat poison" predictions since 2013
👉 How institutional adoption is reshaping crypto markets
FAQs: Understanding Munger's Bitcoin Views
Q: Did Munger ever approve of Bitcoin?
A: No, he consistently questioned its intrinsic value but acknowledged transfer mechanisms.
Q: Why did Berkshire invest in Nubank despite anti-crypto rhetoric?
A: The fintech's broader banking services likely met Berkshire's criteria beyond its crypto offerings.
Q: What's the "rat poison" reference?
A: Buffett's 2013 description when Bitcoin traded at $100 (versus ~$38,000 at Munger's passing).
Q: Could Munger's views have evolved further?
A: Unlikely given his lifetime adherence to value principles, though he recognized technological potentials.
👉 Value investing vs. crypto assets explained
A New Era Dawns
Munger's passing coincides with cryptocurrency's maturation from speculative asset to institutional product. While his principles remain timeless, the investment world he left behind continues evolving in ways even this legendary thinker might not have anticipated.
The greatest tribute to Munger's legacy may be how investors apply his critical thinking - not just to traditional assets, but to emerging technologies reshaping global finance.