Bitcoin rose to $34,000, but this is why Warren Buffett will never own Bitcoin.
Here’s what you want to know.
The value of Bitcoin, the world’s largest cryptocurrency, has increased by approximately 23% in the last five days. This is good news for Bitcoin investors and speculators. However, for Warren Buffett, this is certainly irrelevant. Buffett called Bitcoin, among other names, “squared rat poison” and said it would never buy cryptocurrencies. “I don’t have a cryptocurrency and I never will,” Buffett told CNBC in February, as Bitcoin is trading at about $10,000. reasons buffet will never have Bitcoin, regardless of the value of Bitcoin:
Buffett believes that Bitcoin does not have an underlying price. As a price investor, Buffett invests in low-priced corporations that produce solid and recurring money flows and have the ability to increase the price of their eBook. For Buffett, Bitcoin produces profits or dividends. On the contrary, the price of Bitcoin is just what the user is willing to pay for it. In this sense, Bitcoin is nothing but the madness of the tulips of 1637. Therefore, Buffett believes that Bitcoin does not have an intrinsic price.
Should I buy Bitcoin: if you have, or intend to own, Bitcoin lately, have an underlying thesis for your investment?If you think Bitcoin has value, make sure you have a transparent thesis for your decision.
Should I buy Bitcoin: Do you have a set of investment principles?Or do you just buy what you read or hear without doing an independent investigation?Couldn’t you just buy Bitcoin to own it even if it doesn’t meet your same investment criteria?Of course. However, when you think about portfolio strategy, you want to perceive why you own a position (and if you’re comfortable buying a position you might not fully perceive).
For some, Bitcoin is the biggest investment of their lives; for others, it’s a speculative bubble that will collapse to zero, Buffett doesn’t play in that limited environment. For what? Buffett is not a speculative investor; instead, it invests in corporations that have a giant economic gap. While all investments involve some degree of speculation, Buffett’s track record is in insurance and threat mitigation. Buffett doesn’t invest in “high flights,” it’s not his game. The game is “buy and keep”, forever. Invest in corporations that grow over time, consistently and consistently.
If you buy Bitcoin: Here’s a useful way to make a potentially speculative investment. The credit is simple: you make a lot of money, like I do at The Lemonade Life, focus on the melting. Are you comfortable with the fact that Bitcoin is value?zero?Are you in a position to lose one hundred percent of your investment?
Zack Friedman is the best-selling e-book, THE LEMONADE LIFE. Apple has named The Lemonade Life one of the “best audiobooks of autumn” and a “must-have. “
Zack Friedman is the best-selling e-book THE LEMONADE LIFE. Apple has named The Lemonade Life one of the “best audiobooks of autumn” and a “must-have. “Zack is the founder and CEO of Make Lemonade (www. makelemonade. co), one of the leading online non-public financial corporations that allows him to live a larger monetary life. He is a highly sought-after speaker and has encouraged millions of others through his difficult ideas, adding more than 150 million people who have read his advice. Previously, he was CFO, hedge fund investor and worked at Blackstone, Morgan Stanley and the White House. Zack graduated from Harvard, Wharton, Columbia and Johns Hopkins.