Billionaire investor Charlie Munger, the long-time friend and business partner of Warren Buffett, has died at the age of 99, according to a statement released by the multinational conglomerate Berkshire Hathaway on November 28th. Just a month ago, Munger had expressed his belief that the future economic outlook of China will be even brighter for the next 20 years.
Munger had talked about China a lot during his lifetime. In his first appearance on the podcast "Acquired" on October 29th, 2023, he mentioned that China will have a better economic outlook for the next 20 years than almost any other large economy in the world. He also said that the leading companies of China are stronger but cost a lot less than the giants elsewhere, which also serves as the reason for him to take the risks of investing in Chinese companies.
He also expressed his optimism towards BYD, describing it as a "tremendous fortune". He acknowledged BYD's value of having such a concentration of talented individuals, saying that it is helpful to solve all the issues about electric motors, acceleration and braking in electric vehicles.
During Berkshire Hathaway's annual shareholders' meeting on May 6th, 2023, Munger used the word "stupid" three times to describe any actions intensifying tensions in China-US relations. He emphasized the importance of a good relationship between the US and China, and of the extensive free trade between the two sides for mutual benefits.
On February 17th, 2022, at the annual meeting of Daily Journal, Munger mentioned the reason why he chose to invest in Chinese companies. He said that every dollar he invested in Chinese companies has its own advantages, and that is because the companies they invested in are stronger but cost a lower price than their competitors. He said, "China is a great, modern nation. We have invested a fair amount of money in China because we can yield more returns here in terms of business strength and securities prices than in the United States." He then summarized the three core reasons for investing in the Chinese market: impressive economic growth, competitive companies, and cheap valuations.
During the shareholders' meeting of Daily Journal in 2021, Munger praised China's automation and the progress it has made. He expressed his astonishment at how rapidly China has eradicated poverty, mentioning the fully automated factories operated by robots throughout the country. He observed that China has entered the realm of modernized countries, which excels at economic management.
In conclusion, Munger said, "I think China has been extremely astute in managing their economy, and they have achieved better results than we have. I believe that may well continue."
Source:Yangcheng Evening News
来源 | 羊城晚报•羊城派综合澎湃新闻、潮新闻
翻译 | 洪婷