The Real Reason Why Warren Buffett Hates Crypto | Steemleo Show #16
Podcast Notes → https://steemleo.com/buffettonbitcoin
Warren Buffet was recently interviewed on CNBC and was asked about his opinions on cryptocurrencies and Bitcoin after his dinner with Justin Sun and a few of his “crypto buddies”.
There is no doubt that Buffett is an incredible value investor, but when it comes to evaluating cutting edge technologies, he may not have the best track record. He has made a MASSIVE bet on Apple, but he didn’t make that bet until 2016 — when the company was already a global behemoth with a massive amount of positive cash flow.
Buffett doesn’t predict “the next technological breakthrough”, instead, he focuses on income-producing assets that are tangible in the here and now and can reliably grow in the future. That’s why I believe his perspective on investments regarding innovative technologies ought to be taken with a grain of salt.
In This Episode:
- Titans of industry — a direct correlation to be anti-disruption
- Lack of technological awareness
- Lack of research in the industry — listen to people who talk about shit they know. Warren Buffett is an amazing person — maybe even the best person — to listen to when it comes to value investing. Buffett was anti-Apple until 2016 when he purchased a large stake. Now he calls Apple ‘probably the best business I know in the world’
- Buffett’s principles of value investing make him an incredibly successful investor when it comes to buying companies that are already valuable and will continue to be valuable in the future. He DOES NOT make his money by predicting the future flow of innovation. It’s all about cash flow and assets.
- Crypto is completely outside the realm of his understanding. He focuses on cash flow and how to purchase more INCOME PRODUCING assets. To him, Bitcoin is the same thing (or maybe even worse) than Gold because as he has said in the past — Gold is only good for looking at it. You can’t do anything with Gold. It doesn’t produce any income. With Bitcoin, Buffett values it even lower than Gold because you can’t even look at it or wear it.
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