Charles Munger, the 94-year-old vice-chairman of Berkshire Hathaway on Wednesday, February 14th at the annual meeting for The Daily Journal Corporation of which he is chairman and publisher. “It’s just disgusting,” Mr. Munger said, “Bitcoin is a noxious poison.” He added that the United States Government is wrong not to be “stepping on it” as is the government of China.
In December Mr. Munger, the Harvard-educated lawyer and self-made billionaire at a University of Michigan Business School event to avoid bitcoin “like the plague,” and that it is “the last thing on earth that you should think about.” “It is total insanity,” he added.
The formula, as described in Benjamin Graham’s The Intelligent Investor is:
The late Mr. Graham, Mr. Munger, and their like cannot conceive of cryptocurrency as an investment because none of their favorite factors exist for entry into their comparative formula. When a zero is entered for EPS, the V becomes zero. Bitcoin produces nothing but an unalterable chain of transactions, has no income, pays no dividends nor reports earnings to substantiate its market price.
Highly complex calculations involving both fundamental and technical analysis have been programmed into computers and now run relentlessly. New algorithms are inserted into computerized trading programs that adjust to market actions and international news. Earnings expectations and technical trends are now interpreted by machines that learn and act faster than human beings could envision when the first financial formulas were invented.
What is new about cryptocurrency trading is that transaction time has almost disappeared. A one-megabyte bitcoin block of transactions of any value can be transferred every ten minutes and that is slow compared to more recently invented cryptocurrencies.
When later he expanded into the insurance business, he began taking a look behind the numbers before investing. After poring over earnings reports, balance sheets, and income statements, Mr. Buffet learned as much as he could about internal operations, quality of products and workplace environments—the kind of intelligence that cannot be measured with a single number. Those factors included the overall satisfaction of insurance customers (GEICO), how well regarded is a brand of underwear (Fruit of the Loom), the taste and texture of soft-serve ice-cream (Dairy Queen), where people prefer to shop (Costco and Walmart), and which smartphone is most desired (Apple).
will offer such an accessible solution. On a single platform, Signals will connect cryptocurrency traders with data science developers. Traders will identify the market trends they are following and programmers will adapt algorithms, machine learning and artificial intelligence to traders’ insights. Future platform evolution will be funded by the upcoming (ICO) of the Signal Token (SGN). Users of the Signal Strategy Builder, traders, and developers, who are willing to share a winning strategy in SGN.