It was a negative week for local and global stock markets as the S&P/ASX 200 (ASX: XJO) dropped 0.5% and all three US benchmarks finished in the red.
Here are my three key investor takeaways from the week.
Munger: ‘ban cryptos’
All eyes were on the Sohn Hearts & Minds conference on Friday, with brokers, investors and fund managers around Australia beaming in to see Charlie Munger in person.
The vice-chairman of Berkshire Hathaway (NYSE: BRK.B) didn’t lack for commentary and quotable statements despite being 97 years of age.
In a wide-ranging speech that spanned geopolitics, leadership and company analysis, he suggested that markets in 2021 were ‘crazier than the dotcom era’ and went as far as saying crypto ‘should never have been invented’.
He urged regulators to ban the currencies, and highlighted his preference for making money by investing in companies that ‘sell things to people’.
Sohn picks and trends
The conference is renowned for delivering the hottest stock picks of the year.
This year, the likes of Megaport Ltd (ASX: MP1), Spotify (NYSE: SPOT), Bill.com (NYSE: BILL), and power semiconductor producer Onsemi (NASDAQ: ON) made the list.
Leverage what you are good at
Back to markets and it was a week where Australia’s leaders decided to double down on what they are good at.
Both Woolworths Group Ltd (ASX: WOW) and CSL Limited (ASX: CSL) appear to be seeking major acquisitions that will leverage their already strong competitive advantages in the pursuit of growth.
For CSL it’s a potential multi-billion dollar Swiss acquisition, while Woolies is joining Wesfarmers Ltd (ASX: WES) in the race for Australian Pharmaceutical Industries Ltd (ASX: API).
Meanwhile, the board of BHP Group Ltd (ASX: BHP) approved the cancellation of the company’s dual listing.