The 97-year-old Vice Chairman of Berkshire Hathaway (BRK-A, BRK-B), Charlie Munger, provided these recent musings about the markets, investing and life.

SPACS

In responding to a question about special purpose acquisition companies (SPACs), Charlie Munger stated SPACs are a way for early-stage investors to cash out of speculative companies using less sophisticated retail investors. He further explained in his blunt style, “It’s just that the investment banking profession will sell sh** as long as sh** can be sold.” He stated, "I think this kind of crazy speculation in enterprises not even found or picked out yet is a sign of an irritating bubble. I think it must end badly, but I don't know when."

GameStop

When asked about the frenzy around GameStop (GME) and other heavily shorted stocks, this is what Munger had to say: “That's the kind of thing that can happen when you get a whole lot of people who are using liquid stock markets to gamble the way they would in betting on race horses. And the frenzy is fed by people who are getting commissions and other revenues out of this new bunch of gamblers. And of course, when things get extreme, you have things like that short squeeze." He added, "It's not generally noticed by the public, but clearinghouses clear all these trades. And when things get as crazy as they were in the event you're talking about, there are threats of clearinghouse failure. So it gets very dangerous."

Robinhood

Asked about wretched excesses in the market today, Munger retorted, "It's most egregious in the momentum trading by novice investors lured in by new types of brokerage operations like Robinhood. And I think all of this activity is regrettable. I think civilization would do better without it." He added, “It's really stupid to have a culture which encourages as much gambling in stocks by people who have the mindset of racetrack bettors. And of course it's going to create trouble, as it did.” He continued, “If you're selling them gambling services where you rake profits off the top like many of these new brokers who specialize in luring the gamblers in, I think it's a dirty way to make money. And I think that we're crazy to allow it." Munger concluded, “Human greed and the brokerage community create bubbles from time to time and wise people stay out of them.

Bitcoin

Asked about bitcoin (BITCOMP), Munger muttered, “I don’t think bitcoin is going to end up the medium of exchange for the world. It’s too volatile...to serve well as a medium of exchange.” He added, “Bitcoin is really a kind of artificial substitute for gold. Since I never buy gold, I never buy any bitcoin, and I recommend other people follow my practice.” Bitcoin, Munger said, reminded him of an old Oscar Wilde quote about fox hunting: “the pursuit of the uneatable by the unspeakable.”

Bitcoin vs Tesla

When asked what was more unbelievable, Tesla’s (TSLA) stock price at a $1 trillion valuation or bitcoin at $50,000, Munger quoted the lexicographer Samuel Johnson: “‘I can’t decide the order of precedence between a flea and a louse.” Munger said he feels the same way about those two choices. ”I don’t know which is worse.”

Low Interest Rates

With the zero interest rate policy of the Federal Reserve, Munger stated it is hard to know how much government intervention is needed. He acknowledged he has no great gift in making macroeconomic predictions. He did note that everyone is willing to hold stocks at higher valuation multiples with interest rates so low. However, he said he did not get rich buying stocks at high multiples in crazy boom times and he is not going to change.

Value Investing

When asked about value investing, Munger responded, “Value investing — the way I conceive it — is always wanting to get more value than you pay for when you buy a stock, and that approach will never go out of style. I think all good investing is value investing. It's just some people look for values in strong companies and some look for values in weak companies. But every value investor tries to get more value than he pays for."

Happy Life

When asked how to live a happy life, Munger said it was easy: “The first rule is to set low expectations. That’s one you can easily arrange. If you have unrealistic expectations, you’re going to be miserable all your life.