Vice Chairman Charlie Munger of Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK-B) has been critical of numerous top-performing trading assets throughout the years.
SPACs, Bitcoin (CRYPTO: BTC), and the GameStop Corp. (NYSE: GME) surge were all discussed by Munger. Munger, on the other hand, is a lover of one particular high riser.
What happened was this: Zoom Video Communications Inc (NASDAQ: ZM), according to Munger, is here to stay and will be used after the COVID-19 epidemic.
“Zoom has become my new best friend. It simply provides a great deal of convenience “In a CNBC interview, Munger stated.
Munger uses Zoom three times a day, and the videoconferencing company’s software helped him close a deal in Australia.
While businesses will see an increase in personnel and in-person meetings, Munger believes business travel will be lower than it was before the outbreak. Because many employees have the opportunity to work from home, Zoom may continue to be popular.
“A lot of individuals will elect to work three days a week and stay at home the rest of the time,” Munger said.
According to the interview, while Munger has acclimated to the power of videoconferencing using Zoom, Berkshire Hathaway CEO Warren Buffett prefers to use an old-fashioned telephone.
“I don’t see how it’s beneficial. I did it once or twice… I think the telephone to be a really useful tool “According to Buffett.
Associated Link: Charlie Munger Discusses Bitcloin, SPACs, and GameStop Fanaticism.
The Reason for Its Importance: Zoom’s stock soared roughly 400% in 2020 as demand for videoconferencing grew in industries such as corporations and schools.
Zoom grew by triple digits in the first quarter of 2021 and is still a great performer. The business cautioned that a slowdown could occur, and that triple-digit growth could be reduced to around 50%.
Munger’s comments could assist boost Zoom’s bull case going forward, as a seasoned investor sees the benefit in using Zoom for meetings and closing agreements.
Price Movement in ZM: On Wednesday, Zoom fell 1.95 percent to $387.03. The stock has gained nearly 59 percent in the last 52 weeks and is up 17% year to date.
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