Topic: Warren Buffet bought “Gold� for the first time. When Bitcoin? - page 4. (Read 533 times)

I really like this trade into an actual mining company instead of buying gold outright. I actually only bought commodity index funds (mostly gold and silver) at the start for corona. I was a bit afraid equities would drop across the board. Dumping Airline stocks seemed like a no brainer - I think everyone sold them. But also selling Goldman Sachs stocks seems very conservative to me. Personally I am still holding some smaller European banks and probably won't sell them in the near future.

Its still possible and we never know whats unpublished. People will probably track and try to find out what it is doing with bitcoin and of course the news circulating in the media may not be 100% true. I find it hard to believe that he will never try to invest in bitcoin, which today can still be said to be a very profitable investment asset. I think he know, but guessing that he own some bitcoin is also not the right thing.

I agree with this, whale investors usually take positions in or drop certain assets after some inside information or some market activity which would be reflected at a later time.
Warren Buffett usually is attracted to firms with positive net profit margin and a high asset turnover, he is also attracted to assets which returns dividends to shareholders, which Barrick Gold did earlier this year:

Toronto — Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) today announced that its Board of Directors has declared a dividend for the first quarter of 2020 of US $0.07 per share, payable on June 15, 2020, to shareholders of record at the close of business on May 29, 2020.
Source

On whether or not he owns bitcoins, it's possible without it being made public. Berkshire Hathaway has previously requested that some of their holdings not be made public by the SEC, without any public news, there can be no certainty.
He can also of course have a private wallet.

Perhaps regulatory restrictions are what prevents him from investing? Even if he buys, there is no need to show it to the public, he will not benefit anything and the price may increase by 1%, but the price will quickly correct.

I am against the rule of buying something because someone bought it or analysts expect it, follow your own style, analyze the news (not all of them are correct) and build your investment plan.

The economic recession may appear violent, or it is maneuvering to buy some shares at a cheaper price.

I hadn't read about Grayscale (but I'll check it out), but I was aware of MSTR's purchase of bitcoin, which I find to be very ballsy for a publicly-traded corporation to do.  Their stock was up a lot at yesterday's close, though I'm not sure that has anything to do with them buying bitcoin.

Warren Buffett certainly knows what he's doing, and the fact that he's ditching banks stocks has me thinking that something big is brewing, either in the banking sector in particular or the economy as a whole.  It's probably going to end up being both.  Buffett has also invested in metals before.  Some years ago he bought a bunch of physical silver if I'm not mistaken, and he made a tidy profit on it.  And if he's buying a single mining stock, it's likely not simply because he wants to invest in gold.  The business is probably an undervalued company that he's going to hold for the long-term.

This is some pretty interesting news, and it kind of reflects the crazy world we're living in right now.

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. 

He isn't investing in BTC despite seeing the value of 1 BTC given to him by Sun had already climbed. Do you also think he is secretly investing BTC?

He isn't announcing he is investing BTC of course it will just prove him wrong. Announcing he is investing in BTC would make people go and buy BTC too resulting in to pump, he probably dont want that too because he also wants to accumulate.

Gold mining is a bit of a secure investment imo...

And you're not just investing in the gold, you're investing in the infrastructure which can be sold on if necessary or leased. Even if the price of gold falls, margins are still probably the same.

He probably won't be alive at a point where he'd choose to invest in bitcoin mining, and he probably already holds bitcoin(?) What stopped him holding $1 million worth and just keeping it parked? Berkshire aren't going to buy bitcoin anytime soon - in any meaningful amount I doubt bitcoin could absorb it.

This does actually mean though that Warren buffet has turned away from real estate and to gold - does he think new York Real Estate won't be growing for a while? Is he worried of another banking crisis? Most people say house prices should fall between 6 months and a year - perhaps this is his bet on that...

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

You have probably heard the news.
Warren Buffet bought gold, or rather something very similar to gold, for the first time in his history.

Warren Buffett traded Goldman Sachs for gold in Berkshire Hathaway’s newly revealed portfolio


So he basically slashed his financial sectors exposure, to gain exposure to gold. Owning a gold mining company actually gives you exposure to price fluctuations of the underlying commodity, having the advantage, following the Omaha gospel, of providing a flow of dividends. Something similar to buying a refinery to get exposure to oil price appreciation.

Actually Buffet has always been really adverse to commodity investment, as he always thought a real enterprise, with the associated flow of money, constitutes an investment. So getting long commodity is not an investment.

From 2011 Berkshire Hathaway shareholders newsletter:



https://www.berkshirehathaway.com/letters/2011ltr.pdf

Just to put things in the right perspective the investment is not great, in Berkshire Hathaway parameters: they had  received over 3.7 Billion $ just in dividends from their top 10 companies (dividends from Apple and Wells Fargo topped more than 700 millions from each firm), compared to a GOLD investment of 563 USD million.
 But we Have to remember Buffet is used to invest (and disinvest) in chunks. So wo might see other investments in the coming quarters.

What it strikes to me is the timing.
In a few days we had three incredible news:

• Microstrategy, a Publicly listed company, bought more than 21,000 BTC as base asset reserve
• Grayscale investment had their biggest weekly inflows, with more than 217 USD millions of dollars subscribed in one week
• Warren Buffet buy a Gold mining Company, thinking the precious metal price dinamic will be able to provide him a good flow of dividends (this is an underplay off the situation, trying to minimise for intellectual honesty)

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.