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

Legendary investor Charlie Munger may have once called Bitcoin “rat poison squared” — but that doesn’t mean crypto traders should ignore his years of investing wisdom.

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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: 

Only invest in what you know

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

Munger and Buffet also mastered the art of valuation by interrogating a firm’s balance sheet before making an investment decision, which Munger once said is the only intelligent way to invest.

Munger was born on Jan. 1, 1924 — passing away just 34 days shy of his 100th birthday.

“Berkshire Hathaway could not have been built to its present status without Charlie’s inspiration, wisdom and participation,” Buffett said in a statement.