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Last Updated : Feb 17, 2019 01:57 PM IST | Source: Moneycontrol.com

Investing tougher now; US, China to eventually reach a settlement: Berkshire Hathaway's Charlie Munger

Commenting on the US’ massive national debt, Munger said he is not worried. Though he added every great nation eventually falls, be it Rome or Britain from its heydays; and it is the US' turn now.

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The current environment is tougher for investors, Warren Buffett's longtime business partner and Vice Chairman of Berkshire Hathaway, Charlie Munger said in a discussion with CNBC on February 15.

He attributed mainly two reasons for the tougher environment -- a higher valuation of companies and “more intelligent and more aggressive” competition sorting through the opportunities.

However, he added the golden era of investing is not over forever. “It isn't like the last recession or the last big opportunity that the world is ever going to get is past. There'll be opportunities in the future. There are times where they're easier, and there are times when it is harder,” Munger said.

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Commenting on the US’ ever-growing national debt that hit $22 trillion, Munger said he is not worried. Though he added every great nation eventually falls, be it Rome or Britain from its heydays; and it is the US' turn now.

“Our turn is bound to come someday. But I don't like thinking about it too much. It's like my own death. Why should I enjoy thinking about it? But is it coming someday? Sure. Of course, it is,” he said. However, he refused to guess when that time will be.

Munger said, given the advantages of getting along with each other, US and China will eventually reach some tolerable adjustment. He said he is okay with “two countries with a lot of hydrogen bombs to be trading happily with one another”. He said he is also in the favour of making the US-Russia relationship better.

Munger criticised New York’s decision to protest tax breaks to Amazon for setting up its second headquarter in the city. Following months of opposition from local politicians and unions, Amazon on February 14 cancelled its plans to build a 25,000-employee campus in New York.

“There are a number of places that have shot themselves in the foot. Connecticut, California, New York City. It's been serious. And driving the rich people out is pretty dumb if you're a state or a city. And the idea that you're going to help New York by driving the rich people out, of course, it hurts New York,” he said to CNBC.

Amazon had selected New York as one of the cities for its second headquarter, besides Arlington, Virginia.
First Published on Feb 17, 2019 01:57 pm
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