[HN Gopher] Charlie Munger says buying crypto is investing in no...
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       Charlie Munger says buying crypto is investing in nothing
        
       Author : pseudolus
       Score  : 24 points
       Date   : 2022-07-12 18:29 UTC (4 hours ago)
        
 (HTM) web link (markets.businessinsider.com)
 (TXT) w3m dump (markets.businessinsider.com)
        
       | [deleted]
        
       | bckr wrote:
       | The eye never has enough of seeing, nor the ear its fill of
       | hearing. What has been will be again, what has been done will be
       | done again; there is nothing new under the sun.
        
         | ncmncm wrote:
         | I.e. there is still hope for your Beanie Babies to appreciate
         | again, if you just hold them long enough.
        
       | aeternum wrote:
       | >"He added that stocks, which represent pieces of real businesses
       | and claims to their profits, are a far superior investment."
       | 
       | The line between some internet company stock and certain crypto
       | projects is beginning to blur:
       | 
       | Many no longer have a physical store or office.
       | 
       | Both employ skilled devs producing code.
       | 
       | Both have a spectrum of success (including some outright frauds)
       | 
       | Both aspire to become profitable and produce value for
       | share/token-holders.
       | 
       | To claim that one is worthwhile while the other isn't seems to
       | indicate a misunderstanding of the governance tokens and the
       | ownership that those provide.
        
         | thehappypm wrote:
         | Yeah, lots of scummy businesses out there that'll never have
         | profit, never do dividends (or its modern friend, buybacks),
         | but businesses at least have assets to distribute to investors
         | in case of bankruptcy
        
           | cosmin800 wrote:
           | after paying the creditors
        
         | blockwriter wrote:
         | The famous Munger, Buffet, Graham adage is to only invest in a
         | quantity that you understand, with the implication being that
         | you understand how its operations are going to make you money.
         | Munger might also advise against investing in internet
         | companies that are difficult to distinguish from crypto
         | projects. You can, of course, due to your misunderstanding call
         | something nothing when it is really something, and thereby miss
         | out on the windfall. But the other adage of the Munger, Buffet,
         | Graham school of investing is that there are no called strikes
         | in investing.
        
       | bell-cot wrote:
       | In other breaking news - Britain's First Sea Lord and Chief of
       | the Naval Staff says that the North Atlantic is rather salty,
       | cold, and wet.
        
         | melling wrote:
         | Bitcoin is holding around $20,000. Plenty of believers remain,
         | not that I am one of them.
        
       | TheLoafOfBread wrote:
       | Well as I see it putting money into stock exchange is just
       | playing game with numbers. Will they go up or down? How much
       | should I leverage?
       | 
       | People does not care what those numbers represent. They are
       | gambling in this casino to make money. Simple.
        
         | yakak wrote:
         | His point would apply equally to people who do that except for
         | one problem. Whether or not the player understands it, every
         | game is either rigged for or against the player. Betting on
         | real stocks randomly you will on average not lose money because
         | that house is rigged in your favor, on average real investments
         | have real growth.
        
           | TheLoafOfBread wrote:
           | Does not matter, stocks go up.
        
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       (page generated 2022-07-12 23:03 UTC)