Berkshire Hathaway vice chairman Charlie Munger said he likes Zoom and said the video conferencing software will continue to thrive even as life returns to normal after the pandemic.
“I fell in love with Zoom,” Munger said during an interview with Becky Quick about the CNBC special, “Buffett & Munger: A Wealth of Wisdom,” which aired Tuesday. “I think Zoom is here to stay. It just adds so much convenience.”
The 97-year-old investor said he used Zoom at least three times a day and made a deal in Australia via video call.
Zoom stood out as a big pandemic winner as millions of stay-at-home users around the world used the app for video calling and other features. Shares rose a whopping 395% in 2020 as earnings skyrocketed amid spike in demand. Earlier this month, the company reported another blowout quarter with revenue growing 191% for the period ended April 30.
Zoom In Icon Arrows pointing outwards
However, Munger’s longtime Berkshire business partner and CEO Warren Buffett doesn’t see Zoom at eye level and says he still prefers the old school phone.
“I’m just not a zoom guy,” said the 90-year-old investor. “I don’t see any benefit in this, especially not. I’ve done it once or twice and they have had a bunch of people who … I just didn’t think it would add to the experience. I would have preferred it.” my feet on the desk and I find the phone a very satisfactory tool. “
Charles Munger, vice chairman of Berkshire Hathaway Inc., left, and Warren Buffett, chairman of Berkshire Hathaway Inc., attend a BYD Co. press event 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 office demand will remain low as many workers are likely to have the flexibility to work from home.
“I think a lot of business trips will never come back. Only companies choose one meeting a year, two meetings a year in person, and the rest zoom. And I think that will stay,” said Munger.
“What happened to office demand is just … think of the agony in that area now. A lot of people have found they don’t need to be there,” added Munger. “And I think a lot of people will choose to work three days a week and the others to stay home. I think all kinds of things will happen that … we don’t go back to what we were doing before . ” . “
In its first quarter report, Zoom warned of an impending slowdown as expansion slows due to the pandemic-driven 2020 year. The company now sees sales growth of 50% for the full fiscal year.
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