Charlie Munger, vice chairman of Berkshire Hathaway (NYSE:BRKa), voiced his skepticism towards cryptocurrencies and artificial intelligence (AI) at the Zoomtopia conference hosted by Zoom (NASDAQ:ZM) on Monday. Fortune reported that Munger predicted a dismal future for digital assets, stating their value would ultimately plummet to zero. He echoed the consistent criticism of his business partner Warren Buffet towards cryptocurrencies, labeling these investments as foolish.
Munger's critique of crypto investments was scathing. He dismissed the idea of investing in digital currencies such as Bitcoin as "stupid", predicting they would become worthless due to the self-centered motivations of crypto investors. He expressed regret over the very invention of cryptocurrencies.
In addition to his critique of digital assets, Munger also shared his skeptical views on the hype around AI. He acknowledged the usefulness of this technology but described it as overhyped, pointing out that similar technology has long existed. His stance on AI was reiterated at Berkshire Hathaway’s 2023 shareholder meeting.
While Munger's comments reflect a cautious approach towards such investments, it's interesting to note that Berkshire Hathaway, under his vice chairmanship, has been performing remarkably well. According to InvestingPro, the company has a market capitalization of $500.14 million USD and a P/E ratio of 8.82. The company's revenue growth has been accelerating, with a reported revenue growth of 14.99% LTM2023.Q2, and a quarterly revenue growth of 21.39% FY2023.Q2. Furthermore, the company has demonstrated a high return on invested capital, and its net income is expected to grow this year.
InvestingPro also highlights that Berkshire Hathaway has a perfect Piotroski Score of 9, indicating strong financial health and profitability. The company's stock generally trades with low price volatility, making it a relatively stable investment. The company is a prominent player in the Financial Services industry and its stockholders receive high returns on book equity.
Despite not paying a dividend to shareholders, and an increase in total debt for consecutive years, Berkshire Hathaway's cash flows can sufficiently cover interest payments and its liquid assets exceed short-term obligations. The company's analysts predict that it will be profitable this year and it has been profitable over the last twelve months.
For those interested in more insights like these, InvestingPro offers an additional 12 tips about Berkshire Hathaway and other companies. These tips, backed by real-time metrics, can help investors make more informed decisions.
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