Bitcoin continues to outperform Warren Buffett’s portfolio, and the gap is set to widen
Warren Buffett, the renowned investor and chairman of Berkshire Hathaway, celebrated his 93rd birthday on Aug. 30. Throughout his lengthy career, he has adhered steadfastly to a value investing strategy that bears some resemblance to the "buy and hold" approach often associated with cryptocurrencies.
However, Buffett’s focus is on assets with strong earnings potential, and investing in companies and sectors where he and his team possess a deep understanding of the associated risks, competition, and advantages.
The question is whether such a laser-eyed strategy can outperform Bitcoin (BTC) in the long run. Moreover, investors should question why one of the greatest stock pickers of all time currently holds cash and short term bonds as the second largest position in his portfolio.
An interesting example of this approach is Berkshire Hathaway's largest holding, Apple (AAPL) shares. The company initially acquired these shares in early 2016 when the company was already valued at over $500 billion, so they were far from being early investors. Notably, Berkshire Hathaway continued to add to its AAPL investment in 2022, even though the stock had rallied over 500% since their initial purchase. This illustrates Buffett's commitment to long-term investment strategies, regardless of recent price movements.
In a February 2012 shareholder letter, Berkshire Hathaway expressed concerns about the devaluation of paper currency and discussed the limitations of gold as a store of value. They argued that gold lacks practical utility, with demand for industrial and jewelry purposes falling short of production, and its price is largely driven by fear-driven sentiment which leads to only temporary price increases. In contrast, investments in
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