What crypto traders can learn from Charlie Munger — even if he hated BTC

cointelegraph.com:

Legendary investor and billionaire Charlie Munger, known as the right-hand man of Warren Buffet who helped build investment powerhouse Berkshire Hathaway, has passed away at 99 years of age.

Munger’s family informed Berkshire “that he peacefully died this morning at a California hospital,” according to a company announcement on Nov. 28.

Munger, who served as vice chairman at Buffet’s empire since 1978, accumulated a net worth of $2.6 billion and was routinely praised for adopting a sound investment and stock-picking philosophy throughout his tenure at Berkshire.

While Bitcoin and cryptocurrencies weren’t favored investments for Munger and Buffet, who once referred to Bitcoin (BTC) as “rat poison” and “rat poison squared,” crypto traders could still benefit from Munger’s learnings over his 60 years of investing experience. Here are some approaches to investment that Munger swore by: 

Munger said Berkshire Hathaway would often categorize stocks into one of three baskets when evaluating a potential investment.

The latter could explain why Munger and Buffet never invested in Bitcoin and cryptocurrencies, but the takeaway message is that they avoided investing in what they didn’t know.

Buffet has previously admitted he and Munger — both regarded as tech skeptics — were “too dumb to realize” the potential of Amazon’s e-commerce business in the 1990s and underestimated the company’s founder, Jeff Bezos.

Berkshire didn’t invest in Microsoft or Google either. “We blew it,” Munger once said, reflecting on the firm’s decision not to invest in Google.

Despite that, Berkshire stuck to the sectors it knew inside out, such as the banking and food and beverage sectors, making huge profits from investments in Bank of America, American Express,