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Is Warren Buffett Interested in Bitcoin? Berkshire Hathaway Makes Big Profits From Cryptocurrency Investment
Warren Buffett, the most famous investor of all time, is staunchly opposed to Bitcoin and other cryptocurrencies. He says, “You can’t value Bitcoin because it’s not a value-generating asset.” Warren Buffett and his holding company Berkshire Hathaway Inc. are known for investing in stable and profitable businesses.
Buffett believes in investments that create value, rather than investor sentiment. “If you buy something like Bitcoin or a cryptocurrency, you don’t have anything that has actually produced anything. You just hope the next seller pays more.”
This strategy has proven profitable for decades, helping Berkshire Hathaway become one of the largest and most profitable companies in the world. Investors around the world look to Buffett and his companies for investment advice and recommendations.
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However, Buffett’s anti-crypto stance could change after looking at the company’s performance in 2023. Berkshire Hathaway’s top-performing investment in 2023 was Brazilian fintech Nu Holdings Ltd. The company owns Nubank, a neobank that offers credit cards and banking services as well as cryptocurrency exchanges for users. It offers 15 different tokens, as well as its own utility token called Nucoin.
The company went public in December 2021, but had received support from Buffett and Berkshire during the Series G financing, when Berkshire invested $500 million in the company. Buffett then increased his stake by another $500 million for a total of $1 billion invested as of early 2022.
The investment turned out to be extremely profitable, as Brazil has adopted a very open and tolerant stance towards cryptocurrencies. In 2023, the price of Nu Holdings increased by 93%. These huge gains made Nu Holdings the most profitable investment in Berkshire Hathaway’s portfolio for 2023. This investment is particularly surprising given the strong performance of stocks in other sectors, such as technology.
Buffett did not sell his investment in Nu Holdings, potentially implying that he is bullish on the stock for the months or years to come.
Given Buffett’s hesitation to invest directly in cryptocurrencies, this could be a revelation for the legendary investor. As the company looks ahead to 2023, the strong performance of its crypto-related investment could prompt it to look into other crypto stocks or even cryptocurrencies themselves.
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While cryptocurrencies and digital tokens don’t fit into Buffett’s core investment theses, there’s no arguing with the gains they can provide investors. For example, Bitcoin has appreciated by more than 150% in 2023, outperforming every investment in Buffett’s portfolio.
As cryptocurrency becomes more mainstream and part of mainstream investments, it will be interesting to see if Buffett and Berkshire will relent and continue their investments in crypto stocks or even major tokens like Bitcoin.
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