Munger Criticizes AI And Crypto As "Stupidest Investments"

Billionaire investor Charlie Munger expressed strong disapproval of two popular investment trends during a keynote address at Zoom's Zoomtopia 2023 conference.

The 99-year-old billionaire believes AI is getting more attention than it deserves. I Photo: Nick Webb Flickr

As the vice chairman of Berkshire Hathaway and Warren Buffett's right-hand man, Munger cast a critical eye on the enthusiasm surrounding artificial intelligence (AI), as reported by Bethan Moorcraft for Moneywise.

Munger stated, "I think it's getting a huge amount of hype," during his keynote address on October 4, as cited by Fortune. He further remarked, "I think it's probably getting more attention than it deserves."

His critique did not stop at AI. The 99-year-old investor, known for his straightforward approach, also lambasted Bitcoin and, by extension, cryptocurrency, as "the stupidest investment I ever saw."

With decades of investment experience, Munger maintains a cautious stance on hot commodities and stocks that can skyrocket one year and plummet the next.

Munger's comments may raise the question: what investment options does he favor?

To clarify Munger's negative stance on AI and crypto, it is worth noting that the so-called "Magnificent Seven," referring to the seven largest US companies by market capitalization (Apple, Microsoft, Amazon, Google, Nvidia, Tesla, and Meta), have all undertaken significant AI projects.

Additionally, a substantial influx of private equity has been directed toward businesses focused on AI.

While many investors see AI as the next major trend, Munger is not jumping on the bandwagon. He highlighted that AI has been in existence since the 1950s, emphasizing, "We've always had artificial intelligence, where software creates more software. And, of course, that's very useful, but we've had it for a long time."

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