Friday, December 03, 2021
“Totally crazy”
Investor dinosaur fears stock market bubble
The stock exchanges around the world are celebrating a party. Even strong price slides can only dampen the mood temporarily. Investor veteran Charlie Munger has no sympathy for this.
Pandemic? What pandemic? Despite individual setbacks, the stock exchanges have only known one direction for months: up. However, veteran investor Charlie Munger is uncomfortable with the rapid rise in the share price. The markets are extremely overvalued, said Warren Buffet’s business partner at a conference in Sydney. The environment is even crazier than the dot-com boom at the end of the 90s, which ended in a bang.
To put it into perspective: The US standard value index S&P 500 has risen almost 22 percent since the beginning of the year, the technology index Nasdaq 100 almost 24 percent.
97-year-old Munger is managing a Berkshire Hathaway with Buffett. But in view of the high share prices, both are holding back on purchases on the stock exchange. The investment vehicle currently sits on cash reserves of around $ 150 billion.
Meanwhile, Munger sees potential in renewable energies. “I love the fact that we are increasingly reducing our burning of coal, gasoline and diesel,” he said. The investor, on the other hand, does not believe in cryptocurrencies like Bitcoin. He wished they hadn’t been invented. It is good that China is taking action against it. “My country made the wrong decision,” said Munger, adding. “I just don’t want to be part of these completely crazy booms.”