The famous investor Warren Buffett does not like cryptos, bitcoin (BTC) included. And he does not hide it. Several times, the billionaire has explained why, in his opinion, this asset does not deserve to be invested in. However, certain data show that the businessman missed the opportunity to increase his fortune.
In short
- Bitcoin is emerging as a viable alternative store of value and challenging Warren Buffett’s strategy.
- The performance of the queen of cryptocurrencies surpasses that of Berkshire Hathaway, the company of the American investor.
Bitcoin, more useful than shares in Warren Buffett’s firm?
Billionaire Warren Buffett hates cryptos, it is known. And the reason for this antipathy is simple: they have, according to him, no intrinsic value. Bitcoin (BTC) prices may prove him right. The asset is currently worth $25,890, down 0.18% over the past week.
Still, Warren Buffett’s notorious stance on bitcoin’s relevance remains questionable. We realize this by comparing the performance of the asset to that of the shares of the Berkshire Hathaway company of Warren Buffett.
Thus, an investment of $1,000 in cash, in bitcoin, made at the beginning of 2019, would have generated a return of $7,020. For the same investment, made two years earlier, $3,798 in profits would be generated.
These results are obtained by applying the leveraged investment strategy. Applied to the shares of Berkshire Hathaway, this strategy gives completely different results for the same investment made over the same periods. Thus, an investment of $1,000 in shares of Berkshire Hathaway would have generated $5,623 in profit in 2019. Compared to only $1,998 if the amount had been invested in 2017.
In terms of appreciation, the performance of bitcoin (BTC) is more profitable than interests in Berkshire Hathaway. It’s obvious. This leads one to wonder if Warren Buffett’s position regarding bitcoin is not just posturing? An investment strategy that seems to show its limits.
Warren Buffett’s investment strategy at the end of its rope?
The fact that bitcoin is outperforming Berkshire Hathaway stock makes sense. It means investors increasingly see it as a viable alternative store of value. Evidenced by its market capitalization of approximately $ 500 billion.
A figure which suggests a potential strengthening of the role of assets in financial markets. In the meantime, given the changes they are undergoing, it would not be surprising to see investors exercise caution.
For them, this would consist of betting on the investment philosophy advocated by Warren Buffett. A strategy focused on controlling the issues surrounding assets with solid earning potential.
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