Charlie Munger, Warren Buffett’s business associate, called bitcoin ‘rat poison’. Guy Spier is a value investor who was one of the pair’s students. stated in a podcast that Charlie Munger a href=”https://www.youtube.com/watch?v=nisSTAp91-Y”> branded bitcoin as ‘rat poison’ in 2013.
Spier stated that many people approach the crypto world in a not very intelligent way. He is probably right to say that people are more likely to lose money than to make a fortune on a hill.
Spier likened the crypto space with a poker room. The smartest crypto investors are poker players who maximise their chances of success by playing at the right tables.
“Maybe there are only 1% of those tables worth playing at, but I know people who are very likely to find their places,” he stated. He also said that Munger doesn’t advise elite investors to avoid Bitcoin at all costs.
Spier, who manages the Aquamarine fund, partnered up with Mohnish Pabrai, an investor, to place the winning bid for Buffett’s 2008 charity lunch. Spier tried initially to replicate the Berkshire Hathaway CEO’s approach to investing and living, but he soon realized it was not necessary and focused on creating his own style.
“We are not going to be good investors eating peanut brittle, drinking Coca-Colas, or Cherry Cokes all the time, even though that’s fun,” Spier stated. He was referring to Buffett’s love for See’s Candy and sodas.
Spier recalls a high-ranking investor promoting Apple to him at one of Berkshire’s annual meetings in mid-2000s. Aquamarine boss Spier dismissed the stock tip, saying that Buffett was averse to tech stocks. Berkshire, however, built a stake at Apple a decade later and has more than quadrupled the amount it bet on the bet.
Spier also highlighted the difficulty in identifying the best investments, since they aren’t popular almost by definition. Spier said that while the next generation might appear expensive to the untrained eye but those who do their research will find they are actually quite affordable.
Spier stated, “If you only look at the S&P 500 leaders, you’re already missing the boat.”