Renowned investor Warren Buffett has invested in the stocks of undervalued businesses with positive cash flow in addition to purchasing firms he loves. Yet bitcoin is one thing Buffett hasn’t been a fan of lately.
What Occurred: Buffett has long been a critic of the popular cryptocurrency Bitcoin (CRYPTO: BTC), and businessman Peter Thiel even dubbed Buffett Bitcoin’s worst adversary.
Buffett forewarned investors against buying cryptocurrencies in January 2018.
I can almost certainly predict that cryptocurrencies in general will have a poor outcome, Buffett stated at the time. “I’d be happy if I could purchase a five-year put on each cryptocurrency.”
A few months later, in an interview with CNBC, Buffett, the chairman of Berkshire Hathaway Inc (NYSE: BRK-A)(NYSE: BRK-B), expanded on this.
Buffett told CNBC anchor Becky Quick that Bitcoin is “probably rat poison squared,” reiterating Berkshire Vice Chairman Charlie Munger’s assessment that it is “rat poison.”
Even if Bitcoin fell below $25, according to Warren Buffett, who is also known as the “Oracle of Omaha,” he wouldn’t purchase it.
The wealthy investor continues to oppose cryptocurrencies and has never purchased any, but he does hold stock in a business that has placed bets on popular cryptocurrencies like Bitcoin.
Buffett and Berkshire Hathaway are stockholders in Nu Holdings (NYSE: NU), a Latin American digital bank, as Benzinga has reported. A cryptocurrency-friendly bank called Nu Holdings has introduced a number of cryptocurrency products and has made a commitment to investing some of its money in Bitcoin.
Notwithstanding Warren Buffett’s declaration that he would not purchase Bitcoin even if its price reached $25, several investors have decided to place a percentage of their holdings or investments in the most popular cryptocurrency.
On May 5, 2018, the day of Buffett’s “rat poison squared” remark, bitcoin fluctuated in price between $9,695.12 and $9,964.50.
At the coin’s all-time high price for the day, a buyer could have purchased 0.1004 BTC.
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