Warren Buffet bought â€œGoldâ€� for the first time. When Bitcoin? - page 3.

fillippone

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Quote from: LoyceV on August 17, 2020, 05:02:51 AM

Quote from: ?? on ??

Who knows, Warren Buffet might be buying bitcoin secretly

He's a multi-billionaire, he doesn't need to secretly get richer by buying something he doesn't understand in private.
His company isn't in the business of hiding in the shadows, and I'm pretty sure they don't do "secret" investments.

Quote from: TitanGEL on August 17, 2020, 03:04:47 AM

It is a pure assumption, he has a interview and he said that he will never own a cryptocurrencies so he is basically a hater because of what he said that it has "no value".

You can argue the exact same thing about any fiat currency.
This video sums it up nicely: Youtube: Silicon Valley | Cryptocurrency | Bitcoin S5E7.

Warren Buffet is not buying Bitcoins (YET).
Of course his firm cannot do, for many obvious reasons, "secret investments".
In addition to that, he doesn't invests in things as commodities or currencies (either FIAT or Crypto), as there are not "investments" according to the aforementioned shareholder letters.

In addition to that, I think his latest statement about bitcoin is:

Quote

“[Bitcoin] itself is creating nothing. When you’re buying nonproductive assets, all you’re counting on is the next person is going to pay you more because they’re even more excited about another next person coming along.”

Source: Billionaire Warren Buffett Calls Bitcoin ‘Rat Poison Squared’

This is a view he has on every not dividend yielding assets, as I explained above.
The peculiar view on Bitcoin is the following:

Quote

probably rat poison squared

My bet is not if, but when, thew will change from the above statements to Bitcoin investment.

Leviathan.007

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Gold was always the most stable investment for the mid and long term investors and suitable for people who looking for stable market. But recently gold price fallen down and made a real nice chance for anyone to invest there and buy golds for a real heap price. Warren Buffet is one of this people, since he a long term investor and he saw a good chance for buying gold and he used it. However, Warren Buffet didn't really like Bitcoin for investing as he said on the interviews.

LoyceV

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Quote from: ?? on ??

Who knows, Warren Buffet might be buying bitcoin secretly

He's a multi-billionaire, he doesn't need to secretly get richer by buying something he doesn't understand in private.
His company isn't in the business of hiding in the shadows, and I'm pretty sure they don't do "secret" investments.

Quote from: TitanGEL on August 17, 2020, 03:04:47 AM

It is a pure assumption, he has a interview and he said that he will never own a cryptocurrencies so he is basically a hater because of what he said that it has "no value".

You can argue the exact same thing about any fiat currency.
This video sums it up nicely: Youtube: Silicon Valley | Cryptocurrency | Bitcoin S5E7.

TitanGEL

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Quote from: ?? on ??

Who knows, Warren Buffet might be buying bitcoin secretly, he's been causing Fud on bitcoin and we know how whales play their game, I don't think that he just bought gold at such a high price, he must have been accumulating all this while and finally announced after gold pumped, I believe such is gonna happen with bitcoin, he's gonna announced that he bought bitcoin after bitcoin pumped and perhaps surpass its all time high, he's a wise investor I don't believe that he doesn't own bitcoin despite meeting Justin and Justin Sun claimed he gave him a bitcoin

It is a pure assumption, he has a interview and he said that he will never own a cryptocurrencies so he is basically a hater because of what he said that it has "no value". Anyway Warren Buffet is the most successful American investor after all, public always want to know what are the stocks that he is buying in order to ride the hype. Because of his power and his huge money, he can easily pump a certain assets. I do not know if his mind will be changed because it seems that he is still not finding the value of the cryptocurrencies especially the bitcoin. But once Warren Buffet accept and invest in bitcoin, for sure it will cause a hype where we can see monstrous rally.

ReiMomo

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Who knows Warren Buffet already investing in bitcoin and he did not publicly announce about investing bitcoin because we know that he hated crypto before. However, this is not surprising to me because gold is one of the most promising investments, the price slowly has grown but surely a safe investment.

I guess he will realize soon the potential of bitcoin as an investment just like gold. For now, I thinking this that like investing gold mining and bitcoin is the same profitable.

DoubleEdgeEX

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A recetn exchange of posts between Pomp and Peter Schiff made me wonder when Buffet will join the Bitcoin community too. If he really does, I assume he will do it like BlackRock did, with an investment in a company that is clse to cryptos. As for gold, a hardcore guy like Schiff should be careful about Elon Musks move to mine Gold on Asteroids in the next 5-10 years

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Quote from: hatshepsut93 on August 16, 2020, 07:29:21 PM

With this logic, he'd buy "Bitcoin" - a stock of some company related to Bitcoin. Except he'll never do this, because he might view gold as useful, a thousand-year tested asset, but Bitcoin is a volatile, speculative "rat poison".

Most probably because we all know how allergic he is with the crypto stuff Grin

. However, if he really got a true business mind then there's no way that he will not be interested on something which can give him profits. And bitcoin investing can do that! So I think he grabbed/grabs/will grab it (maybe he's not as vocal as the others because he want to take care of his reputation). It is just that Warren Buffet shows hatred to crypto maybe because he was not yet comfortable moving outside his empire Grin

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Quote from: hatshepsut93 on August 16, 2020, 07:29:21 PM

Maybe after Buffet will be gone his company will get into crypto, especially as crypto will become more established in the coming years.

*knock in the wood Tongue

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Quote from: hatshepsut93 on August 16, 2020, 07:29:21 PM

With this logic, he'd buy "Bitcoin" - a stock of some company related to Bitcoin. Except he'll never do this, because he might view gold as useful, a thousand-year tested asset, but Bitcoin is a volatile, speculative "rat poison". I can totally see Warren Buffet vetoing a proposal to buy crypto company stocks on a board meeting of Berkshire Hathaway, because doing so would kinda harm his reputation. Maybe after Buffet will be gone his company will get into crypto, especially as crypto will become more established in the coming years.

The investment he has made is on a gold mining company that has a marked a 45% profit for the year. This is being used as a source mentioning his increase on interest over the gold. This positive sign over gold is being predicted to create value addition to bitcoin. Buffet who is well known for investment strategies never have long term investment betting on the banking sector moving towards a high liquidity gold is a start focusing on the technology uplifting. As said maybe the next gen of company holdings/holders of Buffet will prioritise cryptocurrency market investment.

hatshepsut93

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With this logic, he'd buy "Bitcoin" - a stock of some company related to Bitcoin. Except he'll never do this, because he might view gold as useful, a thousand-year tested asset, but Bitcoin is a volatile, speculative "rat poison". I can totally see Warren Buffet vetoing a proposal to buy crypto company stocks on a board meeting of Berkshire Hathaway, because doing so would kinda harm his reputation. Maybe after Buffet will be gone his company will get into crypto, especially as crypto will become more established in the coming years.

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Quote from: LogitechMouse on August 16, 2020, 07:19:43 PM

Maybe he sees that the dollar value is slowly withering and we know that he is a type of man where he holds a lot of dollars and will just invest in a perfect time.

The reason I see why he bought is that he is hedging and possible that he sees the value of Gold. When it comes to Bitcoin, he can buy anytime he wants too but I don't think that he has interest in buying it. If he will not buy now or sometime in the future, he will regret it.. or not :X.

who knows, he's privately securing bitcoin stash? Grin

but with gold, thats a sure investment so it's really not surprising at all. he can do all he wants with his riches, so wherever he invests it, he's free to do so. but if in case in the future, he will publicly mention when he invests in crypto, i guess people will go wild and it will have an impact on bitcoin's price. let's see...

LogitechMouse

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Maybe he sees that the dollar value is slowly withering and we know that he is a type of man where he holds a lot of dollars and will just invest in a perfect time.

The reason I see why he bought is that he is hedging and possible that he sees the value of Gold. When it comes to Bitcoin, he can buy anytime he wants too but I don't think that he has interest in buying it. If he will not buy now or sometime in the future, he will regret it.. or not :X.

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Quote from: pixie85 on August 16, 2020, 05:40:07 PM

Quote from: The Sceptical Chymist on August 16, 2020, 11:02:34 AM

Quote from: bitcoin_paypal on August 16, 2020, 10:44:10 AM

Buffet is too old for crypto. If he want to just buy gold and not invest in btc then it his own right

It's not that he's too old. Buffett is a very smart man and he just doesn't see it having any long-term value--plus his shareholders at Berkshire Hathaway would probably revolt if he did get into crypto.

Maybe he sees its long term value but it's too long for him.

We will gradually move from paper to electronic money and possibly from there into more mainstream crypto but it's going to take many years before it happens and the future can be volatile. Buffett will be long gone by then. Old people prefer stability.

Old people prefer stability and mostly asset that they can held but been older was not the reason why Buffet didn't associate with cryptocurrency cause he's good business mind person and I also believe he didn't gets involve with crypto because of his shareholders as said by @The Pharmacist.
Meanwhile, with the stability in price and potentials of Gold is not possible for Buffet to just bought his first gold but this maybe his first public investment in gold.

2double0

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If Buffet is into buying mining companies and shares instead of the metals, why are we worried about him buying BTC? He can, instead, trade ETFs and make good money through it but you know he is Warren Buffet and someone sitting at such a high position will look for more liquidity to be able to redeem his profits while not dumping the markets (yes, he can dump the whole BTC market and still will not be in profits). I think he will take interest in BTC futures soon when the total crypto marketcap goes insane.

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Quote from: The Sceptical Chymist on August 16, 2020, 11:02:34 AM

Quote from: bitcoin_paypal on August 16, 2020, 10:44:10 AM

Buffet is too old for crypto. If he want to just buy gold and not invest in btc then it his own right

It's not that he's too old. Buffett is a very smart man and he just doesn't see it having any long-term value--plus his shareholders at Berkshire Hathaway would probably revolt if he did get into crypto.

Maybe he sees its long term value but it's too long for him.

We will gradually move from paper to electronic money and possibly from there into more mainstream crypto but it's going to take many years before it happens and the future can be volatile. Buffett will be long gone by then. Old people prefer stability.

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Quote from: LoyceV on August 16, 2020, 03:09:48 PM

The Bitcoin-equivalent of investing in gold mining would be investing in Bitcoin mining. I don't expect that to happen though, it's totally different. A gold mine and the company that owns it can expect long-term productivity, whereas a Bitcoin miner sees his hardware quickly become obsolete.

I think a lot of crypto mining firms are holidng onto a lot of their funds as well in hope that the price increases... You can generally get away without reading an electric metre for a copule of months-years here - I doubt it's much different anywhere else and it'd proabably make it more lucrative for them as they scale up to just wait on it.

Quote from: HeRetiK on August 16, 2020, 02:45:42 PM

... secondly he stated that he doesn't understand Bitcoin and is not willing to invest in something that he doesn't fully understand. Which I can only respect since honestly it is a kind of level headedness that is often missing in crypto.

Yeah most people get stuck learning about crypto so he probably thought he might've got stuck there too. I think there's an extremely high learning curve if you're not accustomed to science/computing before moving into crypto.

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Quote from: Coyster on August 16, 2020, 03:15:34 PM

<...>
Warren Buffet didn't invest in bitcoin, but a gold mining company (by extension Gold), but I get your point and how bicoin comes in, in all of these, after the Grayscale/MicroStrategy big news and how it was affiliated with bitcoin, one thing could be certain and it's that there's going to be a gradual movement from fiat to assets that can stand inflation and ward off devaluation.

I think, as I understand Buffet investing, he invested in mining because itâ€™s literally the industry most correlated with gold prices, not because of the mining per se. He said over the decades doesnâ€™t consider commodities for his investment, as buying something and waiting for a price appreciation is not true investment. So he wanted a true business providing a steady dividend flow AND correlated with gold prices prices.

Quote from: Coyster on August 16, 2020, 03:15:34 PM

That being said, talking about assets that can ward off inflation, Gold will come to mind first, but the next asset I'll think about is bitcoin, though it's still a long way before Bitcoin can be technically a safe haven, but it's in that phase to becoming that, bitcoin is doing good things this year, and this evolutionary step will continue and end up in bigger things.

A few months ago, in the infamous Goldman Sachs presentation about bitcoin, they showed in case of â€œnormal inflationâ€� equities are a better hedge than gold. In this sense I think a bitcoin related equity (MicroStrategy is the only one I can think about right now!) are a better hedge, under Warren Buffet parameters he CURRENTLY use to invest.
Bitcoin mining is maybe the most competitive industry on planet Earth. I guess itâ€™s not a good industry to invest into.

The point is: how long can Buffet ignore the true point, and avoid buying bitcoin directly? When he will have to capitulate and accept the fact Bitcoin will be the new investment parameter?

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Quote from: fillippone on August 16, 2020, 10:29:36 AM

Having all these facts is a short span of time really make me think bitcoin is going trough a new evolutionary step in his history, a #Phase5, as PlanB use to call it.

Warren Buffet didn't invest in bitcoin, but a gold mining company (by extension Gold), but I get your point and how bicoin comes in, in all of these, after the Grayscale/MicroStrategy big news and how it was affiliated with bitcoin, one thing could be certain and it's that there's going to be a gradual movement from fiat to assets that can stand inflation and ward off devaluation.

That being said, talking about assets that can ward off inflation, Gold will come to mind first, but the next asset I'll think about is bitcoin, though it's still a long way before Bitcoin can be technically a safe haven, but it's in that phase to becoming that, bitcoin is doing good things this year, and this evolutionary step will continue and end up in bigger things.

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Quote from: The Sceptical Chymist on August 16, 2020, 11:02:34 AM

Quote from: bitcoin_paypal on August 16, 2020, 10:44:10 AM

Buffet is too old for crypto. If he want to just buy gold and not invest in btc then it his own right

It's not that he's too old. Buffett is a very smart man and he just doesn't see it having any long-term value--plus his shareholders at Berkshire Hathaway would probably revolt if he did get into crypto.

Buffett has always said not to invest in things you don't understand. That's why he was very late investing in for instance Amazon.

The Bitcoin-equivalent of investing in gold mining would be investing in Bitcoin mining. I don't expect that to happen though, it's totally different. A gold mine and the company that owns it can expect long-term productivity, whereas a Bitcoin miner sees his hardware quickly become obsolete. It's much more of a continuous gamble on profitability than the stable flow of gold taken out of the ground. Then again, most of my knowledge comes from Gold Rush on the Discovery channel Tongue

HeRetiK

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Typical Buffet move to invest in a gold mining company rather than gold itself. He's in the business of buying shares of value producing companies rather than rare commodities that are meant to be bought and hold. Also if everyone's digging for gold, what better move is there than to start selling shovels? Wink

As far as Bitcoin is concerned, I doubt we'll ever see a move in this direction in Buffet's lifetime. First of all it's not his investment style (ie. it's a rare commodity rather than a company) and secondly he stated that he doesn't understand Bitcoin and is not willing to invest in something that he doesn't fully understand. Which I can only respect since honestly it is a kind of level headedness that is often missing in crypto.

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Warren Buffet will never buy Bitcoin in the near future. The reason is Bitcoin is like gambling, no one knows the reasons for the ups and downs of Bitcoin prices for sure. Warren Buffett is one of those investors who thinks deeply about the fundamentals of his investments. Currently, Bitcoin still doesn't have clear fundamentals to be a very attractive investment for a Warren Buffet. If one day Bitcoin has clear fundamentals then im sure Warren Buffett will buy Bitcoin and be part of his investments.

Topic: Warren Buffet bought â€œGoldâ€� for the first time. When Bitcoin? - page 3. (Read 536 times)