Charlie Munger, the vice chairman of Warren Buffet’s Berkshire Hathaway, is not particularly worried about inflation, and believes people will be using fossil fuels for a long time.
Inflation is “always with us in an episodic way,” Munger said in an interview published by the Australian Financial Review on July 12. “That’s what modernity causes. So, eventually, I assume every currency in the world will go down to nothing. That’s my basic cynical view.”
Munger is expecting interest rate hikes by the Federal Reserve to trigger a significant impact on business valuations and stock prices. However, his outlook remains largely unchanged, despite the recent stock market correction. In the first quarter of the year, Berkshire’s cash pile shrank, from $147 billion to $106 billion, which involved investing $51 billion in stocks and repurchasing its own shares valued at $3.2 billion….