Charlie Munger on the QG2: Driving the rich is pretty silly if you are a state or a city & # 39;

• Charlie Munger, vice president of Berkshire Hathaway, explained the decision made by Amazon to cancel its plan to locate a second head office in New York.
• In an interview with CNBC on Thursday, he said states like New York that "hunt the rich" are "pretty stupid".
• Amazon's surprise announcement on Thursday sparked a political debate over whether the decision was a victory or a defeat.
• Follow the course of Amazon action here on Markets Insider.

Charlie Munger, vice president of Berkshire Hathaway, explained Amazon's decision to defeat its headquarters projects in New York when it said Thursday during an interview that the city had driven the giant technology to a "rather stupid" decision.

"There are several places that have fired in the foot," Munger said in an interview with CNBC, in response to a question about whether New York has "created a big problem for itself" despite the fact that it has "been a big problem for itself" despite the fact opposition of the initial project of Amazon.

He continued: "Connecticut, California, New York City.They – it is – it is serious.And chasing the rich is pretty dumb if you are a state or a city. the idea that you will help New York by chasing the rich, of course, it hurts New York. "

He went on to say that other states had been reckless to "chase the rich".

"I know a lot of rich people who have left California," he told Becky Quick of CNBC. "I think it's really stupid for a state to hunt the rich, they're old, they're in your hospitals, they do not clutter your schools, your police, your prisons, they give a lot. would not want to? " I think Florida and Hawaii were very smart in the way they recruited wealthy people. And I think that Connecticut and California were stupid. "

Amazon's surprise announcement on Thursday sparked a political debate over whether the decision was a victory or a defeat. The company headed by Jeff Bezos completed its search for a second head office last November by announcing to have landed in New York and Virginia.

The proponents suggested that this would have created thousands of jobs and economic opportunities for the city; Opponents said the Long Island City chapter headquarters in Queens would have pushed up home prices and added to saturated public transit.

Most Amazon shares have had a relatively moderate reaction since the announcement. Shares traded less than 1% lower on Friday; he has won 8% this year.

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