Weekly SmartPills #35

FAREWELL TO CHARLIE MUNGER, THE WALL STREET ICON AND HIS COMPLICATED RELATIONSHIP WITH BITCOIN.

The financial world mourns the passing of Charlie Munger, a legendary figure and Warren Buffett’s right-hand man. The story of Wall Street cannot be told without mentioning Munger’s fundamental contribution — a personality who shaped Berkshire Hathaway and left an indelible mark on the entire financial sector.
Berkshire Hathaway, once a failed textile company, was transformed by Munger and Buffett into a massive multinational holding company, now valued at $785 billion on the stock market. Munger, known for his pragmatic approach to investing, was one of the architects behind this extraordinary success.

Munger’s Contradictory Relationship with Bitcoin

Charlie Munger was one of Bitcoin’s fiercest critics. From its early days, when the price hovered around $150, Munger labeled the cryptocurrency as “rat poison.” Even when its value reached $9,000, he continued to call it “rat poison, only more expensive.” His criticism was based on Bitcoin’s extreme volatility and the lack of established regulations.

Munger has always represented a widely held view among financial elites regarding crypto. However, in recent months, there has been a significant shift, with institutions and prominent figures beginning to embrace Bitcoin. One wonders whether, in this changing climate, Munger might have reconsidered his stance. Farewell messages to Munger came from leading figures such as Warren Buffett, who credits much of Berkshire Hathaway’s success to his friend, and Apple’s Tim Cook, who called him a “business titan and a keen observer of the world around him.”

With the passing of Charlie Munger, Wall Street loses one of its most influential and controversial figures. His criticism of Bitcoin was a reflection of the past, but in a present where cryptocurrencies are gaining increasing acceptance, his judgment may become a subject of reflection. His legacy will remain an integral part of the story of traditional finance and its evolution in a constantly transforming digital era.