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Charlie Munger had a simple personal filter for bad ideas. If something was stupid, if it was evil, or if it made him look foolish, he preferred to stay far away from it.

Bitcoin, he once said, managed to hit all three.

The late Berkshire Hathaway vice chairman delivered the remark during the afternoon question session at the company's annual meeting in 2022. CNBC's Becky Quick read a question from a shareholder asking whether Berkshire Chair Warren Buffett and Munger had softened their views on bitcoin after watching the cryptocurrency rise.

Buffett answered first.

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Buffett compared bitcoin to assets that produce something

Buffett framed his response around a core investing principle. In his view, assets should produce something tangible.

Farmland produces crops. Apartment buildings produce rent. Businesses generate earnings.

Bitcoin, Buffett said, produces none of those things.

"If you told me you owned all of the bitcoin in the world and you offered it to me for $25, I wouldn't take it," Buffett said.

The line drew laughter from the crowd packed into the Omaha, Nebraska arena.

When Buffett finished, Munger leaned toward the microphone.

"Well, I have a slightly different way of looking at it," Munger said.

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Munger's blunt three-part critique

Munger started by describing the decision rule he said guided much of his thinking.

"In my life I try and avoid things that are stupid and evil and make me look bad in comparison with somebody else," Munger said. "And bitcoin does all three."

He then walked through each of those criticisms.

"In the first place, it's stupid because it's very likely to go to zero," Munger said.

His second concern focused on the financial system.

"In the second place, it's evil because it undermines the Federal Reserve system and the national currency system, which we desperately need to maintain its integrity and government control and so on."

The third point referenced China's crackdown on cryptocurrency.

"And third, it makes us look foolish compared to the communist leader in China," Munger said. "He was smart enough to ban bitcoin in China, and with all of our presumed advantages of civilization we are a lot dumber than the communist leader in China."

The audience laughed and applauded.

Buffett added a quick joke.

"Yeah, and when 25% of the people of the country get mad because we've said what we said today, just remember Charlie spoke last," Buffett said.

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What happened to bitcoin after that meeting

Munger died in November 2023 at age 99, so he did not see the latest twists in bitcoin's market cycle.

Later in 2022, the cryptocurrency dropped sharply, losing about 65% of its value and falling to roughly $16,000 after the collapse of the FTX exchange.

Prices began recovering in 2023 and accelerated after the U.S. Securities and Exchange Commission approved spot bitcoin exchange-traded funds in January 2024. Large asset managers including BlackRock and Fidelity launched funds that attracted billions in institutional investment.

Bitcoin climbed past $73,000 in March 2024 and continued rising through 2025, eventually reaching a peak near $126,000 in October.

Since then the market has cooled again. As of last week, bitcoin has been trading roughly between $67,000 and $73,000, representing a pullback of more than 40% from that high.

The price swings have kept the broader debate alive. Supporters see bitcoin as a new type of financial asset. Critics, including Buffett and Munger, continue to question whether something that produces no cash flow belongs in a traditional investment portfolio.

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This article Billionaire Charlie Munger Said In Life, He Avoided Things That Are Stupid, Evil, And Make Him Look Bad — And 'Bitcoin Does All 3' originally appeared on Benzinga.com

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