Legendary investor Warren Buffet is worth an estimated $103 billion. He’s been right about many things, which is why people perk up and listen when he talks.
Nonetheless, Buffet’s latest comments have some saying his influence is over and he no longer gets it.
Buffet’s just behind the times.
The thing Buffet said which is making people angry is about cryptocurrencies, which he called “disgusting.”
He also said inflation is hitting many sectors including raw materials and a lack of spending.
We’re approaching a crisis zone that’s being fueled by things like crypto, Buffet and his adviser Charlie Munger said, slamming speculative investing and the dangerous lack of control in the crypto world.
As you can imagine, some people are not so happy about his comments.
Buffet the Buzzkill
As the world’s wealthiest investor, Buffet’s stock company Berkshire Hathaway (BRK) does all it can to rake in tidy profits for investors through its stake in many businesses including tech, raw materials, fast food and more. The 90-year-old Buffet is always on the lookout for new opportunities, but the way the economy is headed does not have him optimistic.
Speaking during an online shareholder meeting this weekend, the so-called oracle of Omaha said that inflation and other factors like the growth of SPACS have him quite concerned about a growing bubble.
A special purpose acquisition company (SPAC) is a blank check company or shell corporation that’s listed on the stock market in order to raise money for buying a private company without actually doing the steps of having an initial public offering (IPO).
Munger wasn’t shy about sounding off on he and Buffet’s view of SPACS, saying they represent “horrible problems with civilization” and a “moral failing.”
Buffet has admitted he voted for Joe Biden, who’s shelled out huge money through his $1.9 trillion COVID relief bill and could feed into an inflation spiral, so we can clearly see some hypocrisy going on here on Buffet’s part when he criticizes places like the Robinhood trading platform for not having commissions. Having no charges for trading is making people – especially younger folks – see their investments like “gambling chips,” instead of serious endeavors.
In other words, Buffet is taking a dig at people who backed GameStop (GME) earlier this year, driving it up hundreds of percentage points as they blindsided short squeezers and brought the Melvin Capital firm to its knees.
Warren Buffet says he dosent like #Bitcoin because it’s used by human traffickers and criminals, as if that wasn’t already being done with Dollars.
He’s afraid that he will lose his empire. https://t.co/kdcwh0Um0r
— Dave Reilly (@realDaveReilly) May 1, 2021
Buffet and Munger: Cryptocurrency is ‘Disgusting’ and Used for Crime
Buffet and Munger also sounded off about crypto, with Munger saying that crypto is a tool for kidnappers and criminals that is “disgusting” and undermines civilization. Crypto isn’t even real and is “created out of thin air,” he added. Somebody may want to clue this guy in on how the Federal Reserve creates so-called “US” dollars as well.
Berkshire Hathaway itself has faced pressure for not doing that well during the pandemic especially in the aerospace and airline industry.
Here’s the thing:
Buffet and Munger may be correct that crypto has dangers of being used by criminals and being harder to track than traditional currency. They may also be correct that we’re in a bubble and that SPACS and other issues going on do not look good for the future.
But they’re also clearly inhabiting a kind of make-believe moral universe in which they’re these untouchable good guys and everyone else is just some peon who doesn’t get it. Let’s be real: Berkshire Hathaway has been having a hard time and cryptocurrency has been surging. No matter what you think of crypto or those who’ve been investing recklessly, there’s an element of jealousy that’s starting to become evident here.
They hate us ’cause they ain’t us.