Charlie Munger Said It Would Be 'Stark Raving Madness' For US And China Not To Become 'Better And Better Friends'

Charlie Munger, the late vice chairman of Berkshire Hathaway Inc BRK BRK, expressed an optimistic outlook on the future of U.S.-China economic relations in a 2019 interview, one of many times when he discussed China in interviews.

During the interview, Munger advocated for cooperation and mutual respect.

“If both sides have any sense, they will be better and better friends and adjust all differences,” he said, emphasizing the importance of fostering a positive relationship between the two major powers.

Munger believed that it is “stark raving madness on either side not to make a friend of the other really powerful nation on Earth.” His perspective is rooted in the idea that both countries stand to benefit significantly from a cooperative relationship, which would ensure economic stability and growth for both nations.

Despite the challenges and tensions that have characterized recent U.S.-China interactions, Munger's comments suggest a pragmatic approach. He acknowledged that while there may be differences, the long-term benefits of a harmonious relationship far outweigh the short-term gains from conflict.

This pragmatic outlook is reflective of Munger’s broader investment philosophy, which valued long-term stability and growth over short-term fluctuations.

Read Also: ‘Common Sense’ Is Actually Uncommon: Charlie Munger Said ‘Standard Human Condition Is Ignorance And Stupidity’

Why It’s Important: Munger's insights serve as a call to policymakers in both countries to prioritize diplomacy and collaboration.

By focusing on common goals and shared economic interests, Munger believed that the U.S. and China can build a mutually beneficial relationship that will contribute to global economic stability. His perspective underscores the importance of strategic thinking and the need for visionary leadership in navigating the complex landscape of international relations.

Munger’s comments also came with Berkshire Hathaway being a key investor in Chinese electric vehicle company BYD Co. BDDYY. Munger often went on record saying he preferred BYD to Tesla. He previously said that investing in BYD was one of the best things he had ever done at Berkshire.

Berkshire first invested in BYD in 2008, buying 225 million shares valued at $230 million. A look at the chart below from Benzinga Pro shows the gains BYD shares have made in recent years.

While other well-known investors have shied away from Chinese stocks due to diplomatic concerns and the relationship between China and the United States, Munger often showed interest in the country both for Berkshire and his own personal investments.

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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