Munger spoke out about SPACs, Bitcoin BTC/USD and the GameStop Corp. GME rally. But, there is one high riser Munger uses and is a fan.
What Happened: Munger believes Zoom Video Communications Inc ZM is here to stay and will continue to be used after the COVID-19 pandemic.
“I have fallen in love with Zoom. It just adds so much convenience,” Munger said in a CNBC interview.
Munger uses Zoom three times a day and even made a deal in Australia using the videoconferencing company’s software.
While businesses will see a return for employees and in-person meetings, Munger sees business travel remaining down from pre-pandemic levels. Many employees having an option to work from home could also lead to Zoom remaining in favor.
“A lot of people are going to decide that they can work three days a week and stay home the other,” Munger said.
While Munger has adapted to the power of videoconferencing with Zoom, Berkshire Hathaway CEO Warren Buffett prefers to use an old-school telephone, according to the interview.
“I don’t see any plus to it. I did it once or twice … I find the telephone a very satisfactory instrument,” Buffett said.
Related Link: Charlie Munger Talks Bitcloin, SPACs And GameStop Mania
Why It’s Important: In 2020, Zoom shares rocketed higher by nearly 400% as demand for videoconferencing rose from sectors like businesses and schools.
Zoom saw triple-digit growth again in the first quarter of 2021 and continues to be a strong performer. The company warned a slowdown could happen for the company and triple-digit growth could be trimmed down closer to 50%.
The comments from Munger could help strengthen the bull case for Zoom going forward with a veteran investor seeing the value in using Zoom for meetings and to get deals done.
ZM Price Action: Zoom closed down 1.95% to $387.03 on Wednesday. Shares are up 17% year-to-date and up over 59% in the last 52 weeks.
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