Warren Buffett bought shares in a gold mining company notwithstanding before bashing the precious metal as an investment instrument. The mystery arises – what would happen if he buys Bitcoin as well?
Even though the prominent US investor Warren Buffett has never been a fan of gold in history, lately he made a sizeable investment in Barrick Gold Corp while reducing his exposure to his favorite sector, banks.
Similiar with gold, Buffett has been thumping on “the new gold,” Bitcoin, and this puts the question of whether he may switch his mind on the primary cryptocurrency at some point in the future.
Sells Banks, Buys Gold Instead – Buffet
The soon-to-turn 90-year old chairman and CEO of Berkshire Hathaway have never exhibited any favoritism concerning gold and its role as an investment tool.
In his 2019 letter to Berkshire Hathaway’s shareholders involving an upcoming financial apocalypse, Buffett refers to the ones planning to accumulate gold as a hedge instead of making investments in “American businesses,” their portfolio would be much meagerer:
“And what would that supposed protection [gold] have delivered? You would now have an asset worth less than 1% of what would have been realized from a simple unmanaged investment in American business. The magical metal was no match for the American mettle.”
Buffett concentrated on investing in numerous other aspects of the current financial scene, including substantial investments in the banking sector. Now, though, his tactics may be shifting tides as Berkshire substantially reduced its stakes in JPMorgan Chase & Co and Wells Fargo & Co.
Despite the fact he lately doubled-down on his Bank of America shares, he also sold most of his Goldman Sachs’. Bloomberg added that Berkshire reduced stakes in other financial firms as well.
Instead, Buffett’s investment company took a more “cautious” strategy and acquired a massive share in Barrick Gold – a leading mining company producing gold and copper in 13 countries.
As claimed by David Kass, a finance professor at the University of Maryland’s Robert H. Smith School of Business, this step from Berkshire comes as “the biggest shock” from the company’s Friday filing.
Could Bitcoin Open Buffet’s Rational Thinking?
Different asset, quite comparable to gold in terms of fixed supply and recent price changes that Buffett hasn’t been fond of, is Bitcoin. Earlier, he had referred to the primary cryptocurrency as a “rat poison squared,” and a “gambling device,” and even a lunch with Justin Sun, CEO of TRON, and other leading crypto figures couldn’t change his mind.
But what if the American investor anyhow adjusts his view about Bitcoin like JPMorgan CEO Jamie Dimon did? And, what if Buffett starts designating funds into the primary cryptocurrency, like Paul Tudor Jones III and MicroStrategy did?
Like a radical transformation of the heart could not only launch BTC’s price into the skies but also start the cumulative effect that will finally enhance the asset’s adoption rates among the masses.
‘Buffett’s Panic Buying At $50K’ – Max Keiser
Heisenberg Capital founder Max Keiser told CryptoPotato that Buffett has missed out on many wealthy properties such as Apple and Amazon as “his timing is poor.” At the same time, Buffett “shunned Gold for 20 years while Gold outperformed Buffett for 20 years.”
As such, Keiser stated that Buffett and another Bitcoin basher – Peter Schiff – will ultimately catch on with BTC and start profiting.
“My guess is that Buffett (or whoever takes over after he passes) will start panic-buying Bitcoin at $50,000, just like Peter Schiff will do.The only major player in the money management business that knows what they’re doing is Paul Tudor Jones who I expect will take his Bitcoin allocation up from the current 2% of the portfolio to 10% in the near term.”