- Warren Buffett and Charlie Munger took part in a CNBC interview that aired on Tuesday night.
- The billionaire investors spoke about their friendship, Berkshire Hathaway, and financial markets.
- Buffett and Munger also discussed remote work and the lessons they took from the pandemic.
- See more stories on Insider’s business page.
Warren Buffett and Charlie Munger discussed their iconic friendship, their key business principles, and what makes Berkshire Hathaway unique in “Buffett & Munger: A Wealth of Wisdom,” a CNBC program that aired on Tuesday night.
The Berkshire Hathaway chairman and vice-chairman also commented on the meltdown of Archegos Capital, the current state of financial markets, the remote-working trend, and what they learned from the pandemic.
Buffett, 90, and Munger, 97, met more than 60 years ago. The pair went on to build one of America’s biggest conglomerates, which owns companies such as Geico, See’s Candies, and the BNSF Railway, and holds multibillion-dollar stakes in Apple, American Express, Bank of America, Coca-Cola, Kraft Heinz, and other public companies.
Insider is liveblogging the rare interview with the two billionaire investors. Follow our coverage below:
The first part of Buffett and Munger’s interview focused on the collapse of Archegos Capital earlier this year, and the loose lending standards that allowed it to happen. Munger singled out Credit Suisse as particularly at fault, and bemoaned that it took the financial crisis to spur regulators to tighten the rules and clamp down on risky practices last time around.
“Think of how massively stupid that was,” Munger said about the fiasco. “It was the lure of the really easy money that the idiot was paying you – being the prime broker for a jerk.”
Munger added that the banks should have known better than to lend to Bill Hwang, given the fund manager had pleaded guilty to insider trading in the past. “You can’t make a good deal with a bad person, just forget it,” Buffett said.
The pair also touched on Robinhood, the trading platform that they both slammed at Berkshire’s annual shareholder meeting in May.
Robinhood is a “gambling parlor masquerading as a respectable business,” Munger said.
“It’s not encouraging people to buy a very, very low-cost index fund and hold it for 50 years,” Buffett said. “I guarantee you will not get that advice.”
“It’s basically a sleaze, disreputable operation,” Munger added.
This story is being updated. Please check back for the latest developments.
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