'Buffett's Close Partner' Charlie Munger: "China's Economy Will Outperform Others for the Next 20 Years"

"Leading Chinese Companies Strong and Stock Prices Affordable"

Charlie Munger, vice chairman of Berkshire Hathaway (hereinafter Berkshire) and close partner of Warren Buffett, the "investment genius" and chairman of Berkshire Hathaway, stated that the Chinese economy "has better prospects over the next 20 years than most other large economies."

According to U.S. media such as MarketWatch on the 31st (local time), Vice Chairman Munger recently expressed this optimistic outlook on the Chinese economy in an interview with the podcast "Acquire."

Munger evaluated, "First, China's leading companies are strong, superior to any other companies, and their (stock prices) are cheap." Regarding BYD, China's largest electric vehicle manufacturer in which Berkshire holds shares, he described it as a "miraculous company" and explained, "Its chairman, Wang Chuanfu, works 70 hours per week and has a very high IQ."

Munger emphasized, "He (Wang Chuanfu) does things you cannot do," adding, "He can look at other companies' auto parts and figure out how to make them, which you cannot do."

Regarding the background of investing in Japanese general trading companies, he said, "There was no need to even think twice." Munger added, "The 10-year Japanese government bond yield was only 0.5%, and the general trading companies were old companies with economic moats. If you borrow money at a 10-year maturity and buy stocks of companies paying 5% dividends, you can generate massive cash flow without additional investment or worry."

Earlier, Berkshire announced in August 2020 that it had acquired more than 5% stakes in each of the five major Japanese general trading companies, including Mitsubishi and Itochu. As of June this year, the average stake increased to over 8.5%. The stock prices of these companies have tripled since August 2020.

Additionally, Munger criticized recent venture capital industry investment practices, saying they have become similar to gambling, and that many venture capitalists are making money by ruining investors.

This content was produced with the assistance of AI translation services.