Charlie Munger defends investment in China and windowless dormitories


One of Munger’s first questions was about China. He was asked how he could trust the economic data coming out of the communist nation, especially since other big investors, such as DoubleLine’s Jeff Gundlach, have shunned China. Gundlach called China “uninvestable.”

Daily Journal holds a significant stake in China’s Ali Baba (BABA). Munger said in Wednesday’s meeting, broadcast exclusively on Yahoo Finance, that he saw more value in China than in the US stock market and praised the country for being a modern nation.
Later in the meeting, Munger said former Chinese supreme leader Deng Xiaoping was one of the world’s greatest leaders because of the economic changes during his tenure that opened up the nation to the West. , modernized China and helped reduce poverty. (Xiaoping, however, was also the leader during the deadly 1989 pro-democracy protests in Tiananmen Square.)
Munger also continued to punch bitcoins (XBT) and other cryptocurrencies, investments that he and Berkshire Hathaway (BRKB) CEO Warren Buffett have been doing it for years.

He said he doesn’t regret not investing in bitcoin, even though cryptocurrencies are now a nearly $2 trillion market. Munger said he was proud to have avoided bitcoin and compared it to a “venereal disease”.

Another Daily Journal shareholder asked Munger if he knew who made the decision at Berkshire Hathaway to invest in ActivisionBlizzard (ATVI) in the fourth quarter of last year, just a few weeks before Microsoft (MSFT) announced a nearly $70 billion acquisition of the video game maker.
Munger didn’t comment, but then praised Activision CEO Bobby Kotick despite Kotick coming under fire for a sexual harassment scandal at the company.

He also slammed people who criticized windowless student dormitories at schools where Munger donated money.

Munger defended the decision to build accommodations without windows, saying there are many rooms on cruise ships that don’t have windows. He said the architect who complained about the design was “ignorant”.

Investors could have another chance to hear Munger’s thoughts in a few months.

Berkshire Hathaway plans to hold its annual shareholder meeting at the end of April in Omaha and Munger expressed optimism that he and others will be able to attend live, despite continued concerns over the Omicron variant of Covid-19.


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