Why didn’t Warren Buffett invest in Bitcoin?

Warren Buffett

First, let’s look at who is Warren Buffett at all?

He is one of the best-known value investors, born in Omaha with a very strong connection to his homeland, which is why he is also called the “Oracle of Omaha”.

With a fortune of USD 84.3 billion, hecurrently ranks third in the Forbes ranking (source).

Investment mentality
“Xa0Warren Buffett is a value investor, which means he only invests in something he knows and understands.
It checks the way and whites that make money and what the philosophy looks like so that it can continue to exist.
He was one of the first companies to deal with computers in which he invested because he didn’t understand it.

It’s worth remembering that Mr. Buffett was born and raised at a time when railroad and oil stocks were the big recommendations on the stock markets.Railway companies, for example, have long been an important part of its portfolio.

The bubble and attitude to gold

What is a bubble for Warren Buffett?As a value investor, he invests in something that has value, something that can grow and what he understands.

But what does he call it a bubble?
“Yes, gold,” Warren Buffett once said, that gold is the biggest bubble there is.In his Shareholder Brief, he also describeshis investment strategy and basic rules (source, from page 18 at Bullet Point), gold is an investment that will never produce anything and therefore does not fit into his portfolio.

In addition, gold does not yield enough, which is why he continues to see it as a dangerous investment (Source)

The Bitcoin

Let’s move on to Bitcoin, why isn’t Warren Buffett investing in Bitcoin?
Let’s add the dots to the

  • It’s not an investment that yields something or yields a return.
  • It’s an investment he doesn’t understand.
  • It doesn’t fit into his philosophy because he doesn’t see it as a company.
  • He has his own investment style, which he has nurtured for decades.
  • He is a value investor who fits Bitcoin (at least not yet) into this category.

As previous speakers have already mentioned, he mentioned Bitcoin or Bitcoin.general Cryptocurrencies “Probably Rat poision squared” (source), he considers it a delusion.

If we look at the developmentand the “behavioural finance” in the last 12-24 months regarding bitcoin and Cryptocurrencies, he is partly not so wrong.
At least his second statement that Cryptocurrencies are a breeding ground for crooks and greedy people.
A lot of people have sold house and yard and have entered exactly where bitcoin was almost at the peak and have now lost even 90% of their assets or “ripped” to choose the correct term.

You can make money with Bitcoin if you understand the technology that reads white papers, the idea, philosophy and the team behind it, including the community.However, one should note that one should be convinced of the vision and ready to wait, it is a new technology, innovations need time and find adaptations as one sees in the Gardner Hype Cycle Chart always certain phases until these are fully adopted to become.

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