It doesn’t seem like Warren Buffett has plans of adding cryptocurrency to his investment portfolio. He has had negative views on bitcoin before and that’s not about to change anytime soon.
Warren Buffett doesn’t believe in Bitcoin. He said this at the annual shareholder meeting for Berkshire Hathaway. The investment magnate, alongside Charles Munger, answered questions for five hours during the meeting. It was the first face-to-face meeting he has had since the pandemic.
He said that if everyone who attended the meeting owned all the apartments in the US or all the farmland in the United States and they offered him a 1% stake for $25, he wouldn’t think twice to write them a check right away. But he wouldn’t do that with bitcoin even if it has more than a $700 billion market cap.
Recently, the finance guru believes that cryptocurrency is an unproductive asset, which he wouldn’t consider buying even if it’s priced at $25.
“If you … owned all of the bitcoin in the world and you offered it to me for $25, I wouldn’t take it,” Buffett said.
The 91-year-old billionaire told thousands of investors from different parts of the world that he won’t take cryptocurrency because he has no use for it. It’s a type of asset that’s not productive and it doesn’t produce anything tangible.
“Because what would I do with it? I’ll have to sell it back to you one way or another. It isn’t going to do anything,” Buffet explained.
He doesn’t know whether the price of the cryptocurrency would go down or up over the next few years. But he’s sure that it won’t produce anything.
He added that bitcoin has attached to itself a certain type of “magic” to make it appealing to investors. But it has no effect on him, apparently.
Buffett has been against cryptocurrency. He believes that it would eventually have a bad ending and he would never consider having a position in them.
Berkshire Hathaway’s Recent Investments
Buffett has spent billions of dollars this year. With this year’s volatile market, the Oracle of Omaha managed to find bargains and purchased shares worth over $51 billion from January through March.
Berkshire Hathaway increased its stake in Chevron, an oil company, from $4.5 billion in 2021 to $26 billion in March 2022. Berkshire Hathaway also bought shares in Occidental Petroleum and now holds a 14% stake in the company.
Berkshire Hathaway also increased its stake in the video game maker Activision and acquired an 11% stake in the computer maker, HP.
Berkshire sold $10 billion worth of shares during the same period. As of writing, the company’s war chest of cash has decreased from $147 billion to $106 billion. However, Buffett assured investors that the company “will always have a lot of cash” to face hard times.
Buffet Took Jabs At Wall Street
Buffet Took Jabs At Wall StreetThe billionaire investor also took jabs at Wall Street during the meeting. He said that Wall Street makes more money when people gamble instead of when they invest.
As promised, here’s one bonus tip that we can get from Charlie Munger during his most recent annual shareholder meeting.
Munger, who is the right-hand man of Warren Buffett, said that he always avoids “avoid things that are stupid and evil and make me look bad in comparison to somebody else – and bitcoin does all three.”
He believes that bitcoin will eventually go to zero, which is why he thinks it’s stupid. It also undermines the Federal Reserve System, which is why he considers it evil. And lastly, it makes them look foolish compared to China.
That’s all for now. Thank you for staying with me until the end. If you found this blog useful in some way, please give it a like. You can also share it with your friends who are interested in investing. You can also check our previous posts such as “Buffett’s Top Seven [How to Invest Like Buffett in 2022]“. Feel free to leave a comment below and let us know what you think about bitcoin or cryptocurrency. Thanks for reading and till next time.
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- Smarter Investing: Simpler Decisions for Better Results
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