Veteran investors Warren Buffet and Charlie Munger criticize Bitcoin and AI

Updated: 09 May 2023

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The chairman and CEO of Berkshire Hathaway, Warren Buffet, and the company’s vice chair, Charlie Munger, have said that Bitcoin is rat poison. However, the two also believe that artificial intelligence (AI) is worse.

Warren Buffet airs concerns about AI

Buffet and Munger are two legends in the financial and business industries. The two attended an annual meeting in Omaha, Nebraska, where they were also joined by other company executives such as Greg Abel and Ajit Jain. The meeting discussed many things, such as finance, geopolitics, and the future of investments.

In the meeting, Buffet aired his concerns about the evolution of AI tools. The business leader said that AI tools could become a Damocles’ sword that can cause significant harm to humanity and not cause any benefits. The dangers posed by AI increased significantly of society relied heavily on this new technology evolution.

While addressing the issue of AI, Buffet said that “It can do all kinds of things and when something can do all kinds of things I get a little bit worried. I know we won’t be able to uninvent it and, you know, we did invent – for very, very good reason – the atom bomb.”

Munger also appeared to agree with Buffet’s opinion on AI. The veteran investor said he was sceptical about the hype on artificial intelligence. According to Munger, “old-fashioned intelligence” worked better.

Buffet and Munger’s remarks come as more experts in the technology and business sectors issue warnings about the dangers posed by an unregulated AI landscape. The White House held a meeting with the CEOs of top tech companies, including Google, and OpenAI, to discuss the implications of AI. Despite these concerns, investors are still interested in the space, as more headlines appear daily.

Buffet and Munger share other investment remarks

Buffet and Munger are veteran investors, with the duo being behind the multinational conglomerate Berkshire Hathaway. They noted that their investment portfolio at the company had increased by 13% over a year. They also said they were confident about the confidence of the American economy.

Munger has also advocated for strengthening friendship ties with China. He opined that much free trade should exist between the US and China because it was in the US’ mutual interest. The veteran investor is referring to the tensions between the US and China and the effects of developing multiple industries globally.

They also shared their views on the crypto market. The duo showed no interest in Bitcoin or the entire cryptocurrency sector. However, they said it was easy for entrepreneurs to venture into the business sector because there was more demand among investors to seek new market developments.

During the meeting, the two compared investing in Bitcoin to people doing dumb things. They also said those who invested in BTC and the cryptocurrency market did so because they could profit from others. The two have never been fans of cryptocurrencies, and Munger has previously urged the US government to ban cryptocurrencies.