Warren Buffett's friend: Today's market is even crazier than during the dotcom bubble
Charlie Munger, Warren Buffett's investor partner, described the current state of the stock market to be even crazier than the dotcom boom of the 1990s, followed by massive corporate defaults.
The investor shared his opinion during a conference in Australia, as Bloomberg reports. He believes that today's markets are very overvalued, which will lead to unfortunate consequences for both stockholders and the market itself.
Charlie Munger also noted that out-of-control cryptocurrencies attract many investors, inflating bubbles. The S&P 500 Index has doubled since March 2020, while Bitcoin has risen by 1,000%. Investor thinks it would be better if no one had invented cryptocurrencies and approved of China's actions towards new payment technology: “And again Iadmire the Chinese, I think they made the correct decision, which was to simply ban them. In my country, English-speaking civilization has made the wrong decision, I just can’t stand participating in these insane booms, one way or another”.
The investor confirms his loyalty towards the eastern country in deeds - his corporation Daily Journal bought Alibaba shares in October 2021. The total purchase amounted to $44.7 million, almost 20% of the company's total investment.