- Warren Buffett continues to throw shade at value investors.
- The sage of Omaha publicly hinted at an increase in people doing “dumb things.”
Although the cryptocurrency sector has been performing relatively well since the start of 2023, legendary investor and CEO of Berkshire Hathaway, Warren Buffett, remains sour towards the industry, indirectly taunting everyone supporting it.
In the latest episode of Buffett’s relationship with cryptocurrencies, the billionaire took an indirect jab at crypto investors, particularly value investors.
Buffet’s Hostility Towards Crypto
On Saturday, May 6, Warren Buffett and Charlie Munger of Berkshire Hathaway held an annual meeting to answer shareholders’ questions about their company’s strategy. In the interview, the investors shared their insights on numerous industries and topics, including value investing.
Charlie Munger, Vice Chairman of Berkshire Hathaway, shared his thoughts on the future of value investing:
“I think value investors are going to have a harder time now that there are so many of them competing for a diminished set of opportunities. My advice to value investors is to get used to making less.”
In response to the Vice Chairman, Warren Buffett added:
“Charlie has been telling me the same thing the whole time we’ve known each other. What gives you opportunities is other people doing dumb things, and there’s been a great increase in people doing dumb things.”
Given Warren Buffett’s history of hostility towards the crypto sector, the asset class is often a target of his jabs. The billionaire has been vocal in criticizing cryptocurrencies, especially Bitcoin, which he has referred to as a “mirage with no intrinsic value” and “rat poison’ on multiple occasions.
Warren Buffett has repeatedly warned investors against putting their money into cryptocurrencies, calling it “stupid” and “a gambling device.” He’s also publicly stated that he wouldn’t buy “all the Bitcoin in the world for even $25” because it doesn’t produce anything.
Although it’s unlikely that the billionaire would ease up on cryptocurrencies, had he invested $25 in Bitcoin in 2014 when he first criticized the digital asset, he would’ve increased his profit by 4,336% to $1109 by 2023.
Conversely, his investment in Coca-Cola has yielded him a return of around 16,000% over three decades.
On the Flipside
- Warren Buffett has invested $1 billion in Latin American crypto-friendly Bank, NuBank.
- Coinbase Ex-CTO Balaji Srinivasan burned $1 million to prove something wrong with the US economy.
Why You Should Care
Warren Buffett is one of traditional finance’s most iconic and successful traders. Many investors follow the billionaire’s views to shape their opinions. His followers could likely replicate his sourness towards the crypto industry.
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