On Wednesday, Warren Buffett’s longtime Berkshire Hathaway Inc (BRKa.N) partner, Charlie Munger said China remains an interesting opportunity to invest despite geopolitical risks.
“People who disagree with me are idiots,” Munger added to his Wall Street Journal editorial calling for the U.S. to ban cryptocurrencies.
The 99-year-old answered 2-1/4 hours of questions at the annual meeting of Daily Journal Corp (DJCO.O), a Los Angeles newspaper publishing company and courthouse software supplier that he chaired for 45 years.
Since 1978, he has worked closely with fellow billionaire Buffett, 92, at Berkshire.
Berkshire recently sold multibillion-dollar stakes, in two Chinese companies, electric car maker BYD Co (002594.SZ) and chipmaker TSMC (2330.TW).
TSMC is also known as Taiwan Semiconductor. Munger has long been bullish on China.
Munger dismissed the possibility of China invading Taiwan. Citing Chinese President Xi Jinping and Russia’s nearly year-long invasion of Ukraine.
Munger called the Chinese leader smart and pragmatic.
“Russia entered Ukraine because it seemed easy. Taiwan seems harder now.”
Munger says this helps Chinese investors because “you can buy better, relatively strong companies at cheaper valuations in China than in the United States.”
BYD is “so far ahead of Tesla in China. It’s almost ridiculous” because Elon Musk’s Tesla Inc. (TSLA.O) has been lowering prices.
Munger called TSMC the “strongest semiconductor company on the planet”. Despite Berkshire’s 86% stake reduction.
After several cryptocurrency companies failed last year, he commented on it.
“I am ashamed of my country due to how many people believe in such nonsense.
Also the government permits it,” Munger said. It’s insane gambling.
