Cryptocurrencies and stocks are ‘crazier than the dotcom era,‘ Munger asserts

<p>Charlie Munger, the legendary investor, said that levels of excess in the stock market are worse now than they were during the dotcom era, as he reiterated his contempt for cryptocurrencies while praising China's efforts to kerb excessive speculation.</p> <p>The 97-year-old investor and polymath who has been Warren Buffett's trusted sidekick for decades discussed markets, investing, and geopolitics during a wide-ranging interview broadcast as part of the Sohn Hearts & Minds Investment Conference.</p> <p>He stated that the current environment was "more extreme" than any he had previously encountered.</p> <p>"The dotcom boom had even crazier valuations than we have now, but I consider this era to be even crazier than the dotcom era," he said.</p> <p>"You have to pay a premium for good companies, which reduces your future returns," he explained to Dr Mark Nelson of Sydney hedge fund Caledonia, who interviewed him for the charity conference.</p> <p>The United States is inferior to China</p> <p>Mr Munger stated that China was behaving maturely with its policy changes, despite investor anxiety over impending property defaults and stock price declines for Alibaba, Tencent, and Didi.</p> <p>"They are correct to step out, to step hard on booms, and to avoid allowing them to travel too far. To the extent that my country does not do so, we fall short of China."</p> <p>"They're behaving more maturely," he observed. "They were correct to take such a strong stance against corruption."</p> <p>Mr Munger also defended China's stance on cryptocurrencies, which he wishes had never been invented.</p> <p>"The Chinese made the correct decision in banning them," he said.</p> <p>Millennials are 'extremely peculiar.'</p> <p>"I want to earn money by selling people healthy products, not unhealthy ones."</p> <p>"Believe me, those who invest in cryptocurrencies do not think about the customer; they think about themselves. Simply observe them. I'd prefer that none of them marry into my family."</p> <p>Mr Munger, who is renown