By Kevin Mwanza
Charlie Munger, the vice-chairman of Berkshire Hathaway and founder Warren Buffet’s right-hand man, blasted Robinhood, slammed SPACs, dismissed the significance of bitcoin and warned that speculative stock trading would end badly.
Munger spoke at the annual shareholder meeting of the Daily Journal Corp., which publishes the LA Daily Journal and San Francisco Daily Journal. Munger serves as chairman.
He said that speculative investors are frenzy-buying stocks on credit because they expect them to keep going up. That has formed a speculative bubble.
The Wall Street Journal has identified “the everything bubble” that is expected to be popped by a surprise rate hike by the Federal Reserve.
“These things do happen in a market economy, you get crazy booms. I’ve been around for a long time and my policy’s always been to just ride it out,” the 97-year-old executive said during the meeting.
A speculative bubble is a sharp, steep rise in prices fuelled by market sentiment and momentum, more than underlying fundamentals, according to Click here to read entire article