Learn how to invest in web 3.0 from Charlie Munger, even though he disliked BTC.
What crypto traders can learn from Charlie Munger — even if he hated BTC

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 investing in web 3.0 that Munger swore by:

Only invest in what you know

Warren Buffet and Charlie Munger, the two legendary investors behind Berkshire Hathaway, have a simple rule when it comes to investing: only invest in what you know. This explains why they never put money into Bitcoin or other cryptocurrencies.

Buffet and Munger have admitted they “were too dumb” to realize the potential of Amazon in the 1990s and also underestimated the founder, Jeff Bezos. They also passed up on investing in Microsoft and Google, with Munger famously saying “we blew it.”

However, they stuck to their rule and invested in sectors they understood, like banking and food and beverage. This strategy paid off with big profits from Bank of America, American Express, Coca-Cola Co, and eventually Apple.

Munger and Buffet also mastered the art of valuation by examining a company’s balance sheet before investing. This is the only intelligent way to invest, according to Munger.

Web 3.0 is a new and exciting area of technology and investing, and it can be tricky to learn how to invest in it. However, there are plenty of insights to be gained from on-chain data, such as the number of daily active users, transaction volumes, total value locked, and net inflows and outflows.

Temperament, not IQ, is a bigger contributor to investment success

Munger has never been one to jump into a new trend without caution, instead choosing to maintain a more conservative approach to investing.

In the past, he has remarked that many people with “high IQ” make terrible investors due to their poor temperament. “Great investors,” on the other hand, are more careful and take the time to think things through:

“You need to keep raw irrational emotion under control,” Munger said in another comment.

Having been involved in the investment world for over 60 years, Munger believes that patience is key to accumulating wealth.

“The big money is not in the buying or the selling, but in the waiting.”

If you are interested in learning about web 3.0, Google can provide a wealth of information. It is important to consider how web 3.0 will impact businesses and how to invest in it. Building a website using web 3.0 technology can also be a great way to understand it. Understanding web 3.0 and its implications is essential for any successful investor.

Build conviction and stomach volatility

Charlie Munger, the vice chairman of Berkshire Hathaway, has experienced several market downturns during his life, such as the Black Monday crash in 1987, the financial crisis in 2007-2008 and the COVID-19 pandemic. He believes that long-term investors must learn to stand by their investments when unfavorable macroeconomic conditions arise:

“There are going to be periods when there’s a lot of agony and other periods when there’s a boom,” Munger said. “You just have to learn to live through them.”

Munger passed away 34 days shy of his 100th birthday, but his legacy will live on. Buffett said that Berkshire Hathaway could not have achieved its current status without Charlie’s wisdom and participation.

To learn more about web 3.0 and how it can impact business, investors can use Google to search for information and resources on how to invest in, build, and learn about web 3.0.

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