In the world of value investing, Warren Buffett stands out as an icon, and lesser known but equally adept is his partner at Berkshire Hathaway, Charles Munger.
The latter, a billionaire, spoke at the annual meeting of the Daily Journal Corp. (a firm where Munger serves as chairman) and said in wide-ranging comments that he remains “confused” about American Express and that company’s future. Munger, as Bloomberg reported, said that, looking at the longer-term horizon of firms such as Amex, is tough because “if you think you know what’s going to happen to payments systems 10 years out, you are probably under some state of delusion.”
As for firms in the financial space, he said that Wells Fargo will rebound from the knocks it has taken in the wake of a scandal tied to fake accounts and termed the controversies a “glitch” without any real signs that anything is wrong on a fundamental level.
Looking at broader trends, he said that India is stymied by government regulations and also stated that China’s growth has come as workers have climbed away from impoverished conditions. That nation, he said, still has “some companies that are very strong and still selling at low prices.”
As for Trump, Munger said that the new president is “not wrong on everything” and championed efforts to maintain Social Security.