Collection: Charlie Munger - #134 'SPAC'



[Transcript]

JULIA LA ROCHE 00:00

Our next shareholder question comes from Simon Jacobs, he write many observers see market behavior that reminds them of the Dot Com bubble: wild speculation, endless SPACs, and IPOs soaring on their first day of trading. Do you agree that there is a close parallel to the late 90s and that this, therefore, “must end badly?”


CHARLIE MUNGER 00:30

Yes, I think it must end badly but I don’t know when.


JULIA LA ROCHE 00:35

You know, an another shareholder Bill Roberts ask about SPACs, and he points out it seems like everyone — including actors, athletes, singers, and politicians — are getting into the business of promoting their own SPAC. Why do you think all these SPACs and the promoters – What do you think of all of the SPACs and the promoters pushing them?


CHARLIE MUNGER 01:04

Well, I don’t participate at all. And I think the world would be better off without them. I think this kind of crazy speculation in enterprises not even found or picked out yet is a sign of an irritating bubble. It’s just that the investment banking profession will sell shit as long as shit can be sold.


(Source: https://youtu.be/Pp4CvjNw-9Y)

 

[YAPSS Takeaway]

Beware of the promoters and follow the facts. And remember;

"The investment banking profession will sell shit as long as shit can be sold." ~Charlie Munger