Earlier this week, Puerto Rico shocked some investors by filing for what amounted to the largest municipal bankruptcy in American history.
Mr. Munger asks: Who would have guessed a territory of the U.S. would be bankrupt?
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He then answers very matter-of-factly.
"Well I would have guessed it because they behaved like idiots," said Mr. Munger.
Leading into the question, the pair had been asked what they had learned lately. Mr. Munger said that buying Apple stock shows Mr. Buffett has learned something since previously he had basically sworn off technology shares.
More importantly, though, it's what they don't forget.
"We don't unlearn the old tricks and that is really important," said Mr. Munger, who then went into his Puerto Rico explanation and a similar predictive view of Greece.
He closes his views by noting Berkshire didn't buy any Puerto Rico bonds.
Click here to see the full live coverage of Warren Buffett at Berkshire Hathaway's annual meeting:
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(END) Dow Jones Newswires
May 06, 2017 16:27 ET (20:27 GMT)