Charlie Munger, vice president of Berkshire Hathaway, has revealed he loves Zoom, saying video conferencing software will continue to thrive even if life returns to its normal course after the pandemic.
“I fell in love with Zoom,” Munger said during an interview with Becky Quick on CNBC’s “Buffett & Munger: A Wealth of Wisdom” special, airing Tuesday. “I think Zoom is here to stay. It adds so much convenience.”
The 97-year-old investor said he uses Zoom at least three times a day and struck a deal in Australia via a video call.
Zoom has established itself as a big winner in the pandemic as millions of home users around the world have turned to the app for video calling and other features. Shares jumped 395% in 2020 as earnings exploded amid rising demand. Earlier this month, the company reported another booming quarter with sales growth of 191% during the period ended April 30.
However, Munger’s longtime business partner and Berkshire CEO Warren Buffett disagrees with Zoom, saying he still prefers the old-fashioned phone.
“I’m just not a Zoom guy,” said the 90-year-old investor. “I don’t see any benefit in that, in particular. I’ve done it once or twice, and they had a whole screen of people who… I just didn’t think it added to the experience. I would rather have my. , you know, my feet on the desk, and I find the telephone to be a very satisfying instrument. “
Charles Munger, vice president of Berkshire Hathaway Inc., left, and Warren Buffett, president of Berkshire Hathaway Inc., attend a BYD Co. press conference in China on Monday September 27, 2010.
Nelson Ching | Getty Images
Munger’s bull case for Zoom is based on his belief that business travel is unlikely to return to pre-pandemic levels. Meanwhile, he said demand for offices will remain low as many workers are likely to have the option of working from home.
“I think a lot of business trips will never come back. Just business after business deciding one meeting a year, two meetings a year in person, and the rest Zoom. And I think it’s here to stay,” Munger said.
“What happened to the demand for office space is just… think about the agonies in this area now. A lot of people have found that they don’t need to be there,” Munger added. “And I think a lot of people are going to decide that they can work three days a week and stay home each other. I think all kinds of things are going to happen that… we don’t go back to what we were doing before. “
During the first quarter report, Zoom warned of a slowdown ahead as expansion declines from the 2020 pandemic. The company is now experiencing 50% revenue growth for the entire range. ‘exercise.
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