Even though he hasn’t conducted new interviews or made any major investments from outside the grave, Munger once again sent news for his outstanding work ethics and reasonable investment advice this week.
An article published on CNBC recounts an old Munger offer to investors who can’t handle the bear market “deserves mediocre results.”
Bitcoin investors see opportunities in the future
This post is related to another sage wisdom of Warren Buffett’s long-term business partner:
“There are few real opportunities to you… Most people can make a huge impact by grabbing huge events a few times.”
Today, many individual investors believe that for them, the opportunity is Bitcoin.
future pic.twitter.com/ticwwe0lex
— Michael Saylor (@saylor) April 10, 2025
Although Munger himself is very skeptical about Bitcoin and cryptocurrencies, BTC investors can apply their principles and disciplinary ideas to the cryptocurrency market.
Bitcoin’s price has dropped 27% in April to over $109,000 since January 20, and these options by Mr. Munger may be as timely as ever.
1. Organize the market “FOMO” and “FUD”
During a period of rapid adjustment of market prices, social media can provide investors with FOMO (worry about missing out) and FUD (fear, uncertainty and doubt).
While Encryption X is a source of timely information and sentiment about the market prices of Bitcoin and other quantitative currencies, it can be an environment with high noise to signal ratios.
Charlie Munger said:
“I try to get rid of people who always have the confidence to answer questions they don’t have any real knowledge.”
Market posts for cryptocurrencies, without evidence, contradictory arguments, and without providing other information will increase noise.
“I don’t trust Bitcoin because it’s too volatile”
Meanwhile, the 24-hour stock market: pic.twitter.com/d2qkbzzewr
– Kara⚡ (@hodlingcarla) April 9, 2025
Berkshire Hathaway’s profits so far lead the average earnings in the stock market, which is Buffett and Munger regard Wall Street as a noise-filled social media platform.
Rather than opening a shop in Manhattan to bask in the sun in Echo Chamber, the two men stayed away from the noise of reading news and financial reports:
“I didn’t know anyone wise in my life…they never read it…you would be surprised at how much Warren reads, how much I read.”
Rather than letting their emotions rush up and down with the crowd, these two extraordinary investors strive to stay informed and make scientific investment decisions based on the relevant factors in their investment.
2. The price of Bitcoin in this bear market
Some market participants panicked as Bitcoin prices fell by one-third from record-high prices in January.
“Currently, market sentiment is full of uncertainty,” Australian cryptocurrency exchange Grovex wrote in a note on April 8.
Individual investors using internet cryptocurrency exchanges and Wall Street investors use ETF funds to dump Bitcoin as well as stocks sold because Trump must work when measuring tariffs on foreign imports.
But Munger believes that following the crowd can lead to average results rather than excellent performance:
“Imitation of cattle will invite back to the average (just average performance)… The bull market will be people’s heads. If you’re a duck on a pond and it’s going to rise due to the downpour, you’re starting to rise in the world. But you think it’s you, not the pond.”
Instead of following the crowd, Munger advises investors to do their own research, run the math and follow the chart:
“Humans have invented a system to deal with the fact that we are essentially so bad at manipulating numbers. That’s what we call a graph.”
#bitcoin It’s about to reach infinity. pic.twitter.com/leesbrkg37
-Sriram | hewhea.us (@sriramhodl) December 30, 2023
3. Basics of Bitcoin Macro Hedging
In addition to Bitcoin’s current and latest price data and its overall trend, it is a basic analysis of its online activity related to its price.
Charlie Munger and his partner Warren Buffett both like to say:
“I didn’t get to my place by seeking mediocre opportunities.”
For more than a decade, Bitcoin has been the best opportunity in its novel design and features and its market returns.
Bitcoin continues to show growth in its fundamental value, and the continued massive expansion of the BTC mining network can ensure all its accounts and transactions.
rupture:#bitcoin Hash rate continues to new heights – Complete parabolic parasitic force!
Every time it happens in history…
Prices followed soon after.Prepare. It’s coming.$ btc #crypto #altcoins pic.twitter.com/ajavbsikl6
– @cryptoelltes (@cryptooelites) April 10, 2025
Due to the rapid pace of massive global adoption of Bitcoin, Michael Saylor, founder of Microstrategy, has achieved great success in buying and holding BTC without having to sell during peak or bear markets.
Even if he never got stuck in cryptocurrency, the investment strategy itself is Charlie Munger’s script:
“The huge amount of money is not in buying and selling, but in waiting.”
Munger is patiently buying and sitting in two of the biggest positions that patiently build huge wealth in financial businesses such as Bitcoin: Wells Fargo and Bank of America.
4. Altseason and Pick Altcoin’Pems’
During a bear market, when certain altcoins with the most potential really shine. However, initial cryptocurrency investors didn’t have to bite something beyond their ability to chew.
Bitcoin is very simple, and Saylor has developed a market-leading strategy around active buying and holding. This is consistent with Munger’s view on stock investment:
“If a person is merely the master and consistently uses all the obvious and easy-to-learn principles, I would not be surprised to see how much territory.”
But for intermediate and advanced Bitcoin investors seeking opportunities with higher risk rewards, there are many factors worth investigating for long-term valuation of the top ten or so cryptocurrencies through market cap.
Munger said:
“Our job is to find something smart to do, not keep up with all the damn things in the world.”
PS: These 8 Warren Buffett quotes are rocket fuel for today’s Bitcoin price.
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