"The best companies in China are cheaper than the best companies in the United States," Munger said on CNBC's "Squawk Box." "I don't think it would be all that hard for any smart person to find four or five great companies in China to invest in."
The vice chairman of Berkshire Hathaway said his family is "substantially" invested in China, where they began investing 14 years ago.
Munger was speaking from Omaha, where Berkshire Hathaway held a weekend of events around Saturday's annual meeting.
Buffett, chairman and CEO of Berkshire, and his longtime investing partner Munger spoke to the tens of thousands attendees on a wide range of topics, from their massive stake in Apple, to missing out on Amazon and Google, to bashing bitcoin as "rat poison."
With Berkshire's 2018 annual meeting in the books, users can revisit the highlights in CNBC's Warren Buffett Archive, which houses searchable video from 25 full annual meetings, going back to 1994, synchronized to 2,600 pages of transcripts. The Warren Buffett Archive also includes 500 shorter-form videos arranged by topic, CNBC interviews, a Buffett Timeline, and a Berkshire Portfolio Tracker.