Warren Buffett’s Berkshire company held a shareholder meeting on the 30th. He mentioned that the large amount of money printing in the United States was the main cause of inflation, but agreed with Federal Reserve Chairman Powell’s decisive action. In addition, he said that Bitcoin is not a productive asset, it will not generate any tangible value, and it will not be purchased; at the same time, he also emphasized that the US dollar is still the most important currency. (Recap:Buffett’s “Last Charity Lunch” will be auctioned in June! LunchDAO has raised 515ETH and will issue $Lunch ) (background supplement:PayPal co-founder | Peter Thiel: Warren Buffett is “enemy number one” hindering the development of cryptocurrencies )
God Buffett’s Berkshire Hathaway held its annual shareholders meeting on the 30th and announced its financial report. Compared with the same period last year, this quarter’s net profit declined by more than 50%. It can be seen that even Buffett is not immune to the US economic downturn. However, Buffett also emphasized that “quarterly investment income” is usually meaningless, and advised shareholders to ignore short-term investment fluctuations.
Money printing is the main cause of inflation, but thank the Fed for action
Speaking of the U.S.’s recent woes of high inflation, Buffett cited massive stimulus during the pandemic as a key reason prices are rising now, and said companies can’t just raise prices to maintain profits in times of inflation. He said:
You print a lot of money and it becomes worthless…
However, he did not criticize the Fed’s actions to increase the money supply and stabilize markets during the market crisis; instead he praised Fed Chairman Jerome Powell’s decisive and swift action, and Said he should be “hats off”
In my book, Ball is a hero. It’s simple because he did what he had to do.
Buffett: Bitcoin is not a productive asset and does not produce anything tangible
Buffett has long been disapproving of “cryptocurrency.” Buffett also attacked cryptocurrencies again at the shareholder meeting, saying that despite the change in public opinion on the currency, he himself would not buy it.
Whether it’s going up or down in 5 or 10 years, I don’t know. But one thing I’m pretty sure about is that it doesn’t generate anything, bitcoin is not a productive asset, it doesn’t generate anything tangible.
He also uses the tangible returns generated by other types of assets to explain why bitcoin is not valued. He said: If you wanted to sell me a 1% interest in all U.S. farmland for $25 billion today, a check would be written to you this afternoon. If you wanted to sell me 1% of the nation’s condos for $25 billion, I’d still write you a check.
But if you tell me you own all the bitcoins in the world and you’re willing to sell it for $25, I won’t take it because I don’t know what to do with it.
I have to sell it back to you because it’s useless. But apartments can generate rent, and farms can produce food.
Shareholders warned of ‘new forms of money’ and importance of cash
When discussing Berkshire’s cash hoard (the company still holds $106 billion in cash), Buffett emphasized that one of the reasons they hold large amounts of cash is because the company has a responsibility to protect its shareholders and not want their money to suffer any permanent damage. sexual loss. And said the company was able to continue operating while the economy stopped. Buffett also showed a $20 bill saying:
This note is legal tender for all public and private debt recognition, that’s why it makes money… You hear a lot about all kinds of money, but it’s the only money you’ll ever see in your life.
It turns out that the dollar does have a significantly lower value in terms of purchasing power, like paper money in many other countries…but when people tell you they’re issuing a “new form of money”, in some cases it’s (dollars) The only thing that pays the bill.
While Buffett didn’t explicitly say “new forms of money” meant cryptocurrencies or something, he has called Bitcoin rat poison in the past.
Further reading:On the first anniversary of the 312 Black Swan, Bitcoin is still rat poison in the heart of “Warren Buffett”?
Munger: Investing in Bitcoin is stupid because its value could still go to zero
Buffett’s old comrade Charlie Munger also commented on Bitcoin, saying that in daily life, I try to avoid doing stupid and evil things, and avoid making me look bad in front of others, and Bitcoin just fits these three points. .
First of all, it is foolish to invest in Bitcoin because its value could still drop to zero.
Second, it is evil because it undermines the Federal Reserve System.
Third, some countries have banned bitcoin, which is a smart move but also makes us look awkward.
He also said bravely saying “no” when you have your own retirement account and your friendly advisor advises you to put all your money in bitcoin, adding that the current stock market has almost turned into a “speculative frenzy” “. Comments pointing to high-frequency algorithmic trading and reaching new investors have intensified during the pandemic.Munger says
We have people who know nothing about stocks and get advice from stockbrokers who don’t know much.
Buffett shareholders meeting | Charlie Munger: Bitcoin’s development is “disgusting” and contrary to the interests of civilized society
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