Charlie Munger still likes big banks and hates crypto

New York (CNN Business) Charlie Munger, the 99-year-old vice chairman of Berkshire Hathaway and longtime friend and business associate of Warren Buffett, said he remains a fan of many big bank stocks, even as Berkshire Hathaway has trimmed its best financial holdings. He also stepped up his longstanding criticism of cryptocurrencies.

“I may have other ideas [than Buffett],” Munger said of bank stocks at the annual meeting of the Los Angeles-based newspaper publisher Diary (DJCO), where Munger was chairman until last year. Munger is still chairman of the Daily Journal and is one of the top investors. The meeting was broadcast live on CNBC.

Daily Journal, which Berkshire Hathaway (BRKB), is a conglomerate that also owns some individual shares. Daily Journal’s portfolio is much smaller than Berkshire’s. But the company owns stakes in four notable companies: Bank of America (BAC), US Bancorp (USB) and Wells Fargo (WFC) as well as China’s Alibaba (BABA).

Munger said he does not want to sell the Daily Journal’s bank investments because the Daily Journal bought many of its stocks at the bottom during the 2008-2009 financial crisis. So the company would face a big California tax bill if it cashed in those gains.

“It’s not that bad for us. We’re not in a normal position. We’re willing to hold them for a while,” he said.

Munger, occasionally sipping a Diet Coke (Coca Cola (QUEUE) is one of Berkshire’s largest stock holdings) and munches on peanut brittle from Berkshire-owned See’s Candies, was also asked about ChatGPT and how it might affect the Daily Journal’s newspaper business.

“Artificial intelligence is very important, but there is a lot of crazy hype on the subject. AI is not going to cure cancer,” he said. “There’s a lot of nonsense in it, too. I see it as a mixed blessing.”

Munger on China and crypto

Munger was also asked about some of the Daily Journal’s investments in China, particularly in light of the suspected Chinese spy balloon controversy and the country’s crackdown on many of its homegrown companies.

Munger said he remains optimistic about China’s economy, but admitted that the Daily Journal’s investment in Alibaba was “one of the worst mistakes I’ve ever made.”

“I never stopped to think [Alibaba] was still a dealer. It’s going to be a competitive business,” he said.

Munger was also questioned about why he (and Buffett) prefers to own shares in Chinese electric car maker BYD as opposed to Elon Musk’s. Tesla (TSLA).

“BYD is so far ahead of Tesla in China it’s almost ridiculous,” Munger said. But he admitted that it is an expensive stock. Berkshire has trimmed its stake in BYD over the past year.

Munger, who has been a significant critic of bitcoin and other cryptocurrencies, continued his attack on digital assets on Wednesday, repeatedly referring to crypto as a four-letter curse word used to describe excrement.

“I think people who oppose my position are idiots,” he said, adding that investors should avoid people who promote cryptocurrencies, saying once again that cryptocurrencies are “worthless”, “crazy”, “ridiculous” and “indescribable ».

Munger also recently wrote an opinion piece for the Wall Street Journal suggesting that the US ban cryptocurrencies.

Investors may hear more from Munger in just a few months. He is expected to appear with Buffett in Omaha on May 6 at Berkshire’s annual meeting.