Warren Buffet does not invest in Bitcoin, why?

[bountyjunkie]

The worlds greatest investor doesn't believe in bitcoin. What do you say?

"You can’t value bitcoin because it’s not a value-producing asset...it's a real bubble in that sort of thing.” - Warren Buffet.

Source : https://www.forbes.com/sites/johnwasik/2017/11/06/why-buffett-sees-bitcoin-bubble/#43a11fbe62a8

[1715485936]

1715485936

[1715485936]

1715485936

[mk4]

Simply because probably every other investor in general has their own preferences on what to invest in.
Also, I really don't want to judge Warren Buffet(as he's probably 10x or more smarter than me), but also probably because he fails to understand how bitcoin works and some of it's important technical aspects that makes bitcoin a really valuable asset. This is usually common when talking to the older crowd that doesn't know much about computers in general, even if they're really knowledgeable or even experts in certain fields.

[penig]

Buffet's strategy is based on looking for companies undervalued on fundamentals and buying up when low/cheap.  No matter what your view on the future of bitcoin and crypto, there are little to no fundamentals - they are not businesses* they have no assets, no cash flow, no products etc.  You could ask why doesn't Warren Buffet invest in Yen, gold, or wheat futures.

He's dead right that there is nothing to value, if you want to argue against that you need to first acknowledge bitcoin is not a currency.

(*actually thats arguable, many ICO are looking very much like equity offering in disguise)

[kiwasmose]

Warren Buffet is not a God, he is only good at the stock market, and I'm sure he doesn't have to know bit more about some of the legendary members of our forum. And he also often has examples of investment failures, we do what we do or insist on their own judgment.

[BrewMaster]

first of all, how do you know he has not invested in bitcoin? are you inside his pocket that you know where every single dollar of his is going to?

additionally, people like Warren Buffet doesn't really need bitcoin. it actually is too small for them to even look at it twice. you see bitcoin rise and think it is big but in their eyes it is tiny!
 
in fact Buffet is the major shareholder in one of the world's biggest financial services with the revenue of $210 billion. and his shares broke $300,000 per share yesterday! you think he cares about tiny bitcoin that he can not own majority of? LOL

[CrowdFunder]

The worlds greatest investor doesn't believe in bitcoin. What do you say?

"You can’t value bitcoin because it’s not a value-producing asset...it's a real bubble in that sort of thing.” - Warren Buffet.

Source : https://www.forbes.com/sites/johnwasik/2017/11/06/why-buffett-sees-bitcoin-bubble/#43a11fbe62a8

Warren Buffet is notorious for going after traditional industries and not investing in anything internet related because he doesn't understand it. Someone who doesn't understand the internet is unable to understand bitcoin as well.

[gamerfan]

First of all, he's stick to his old principles to buy just what he fully understands and to invest in something safe and predictable. So he simply doesn't understand Bitcoin because he can barely turn on a computer; he didn't even invest in 'old' tech companies like Microsoft or Google. He prefer to choose predictable investments like insurance or coca cola. He's quite old too so he maybe doesn't have the energy and the brain to learn new stuff. Maybe he may be a bit lazy as well.
Bitcoin is not predictable because of its violent volatility.

Second, he has big interests in Bitcoin competitors, such as banks and governments bonds. Since Bitcoin could have the power to destroy both governments and banks, he just chose his side.

[wielkiemonety]

first of all, how do you know he has not invested in bitcoin? are you inside his pocket that you know where every single dollar of his is going to?

additionally, people like Warren Buffet doesn't really need bitcoin. it actually is too small for them to even look at it twice. you see bitcoin rise and think it is big but in their eyes it is tiny!
 
in fact Buffet is the major shareholder in one of the world's biggest financial services with the revenue of $210 billion. and his shares broke $300,000 per share yesterday! you think he cares about tiny bitcoin that he can not own majority of? LOL

Buffett doesn't care, and this response hit it right on the spot. Why should he? It's too much risk and the money he's making is killer regardless. Billionaires will be billionaires  

[Dapper]

I'd say I don't believe that NEM/XEM will make it, but I own 10k coins (at around 50 cents each) anyway since it's peanuts just in case.      I'd bet that somewhere in his organization (with his money being handled) that there are those with discretionary funds who are playing (or researching) btc in the same way in much larger quantities (likely in the hundreds of millions of dollars).   

[guybrushthreepwood]

The worlds greatest investor doesn't believe in bitcoin. What do you say?

What do you say? I would like to get your opinion on this.

I think people put too much weight on the opinion of other investors (no matter how successful they've been). Nobody can take away from the investment achievements Buffet has made over his lifetime, and I'd still consider him one of the greatest entrepreneurs of all time, but that doesn't mean he's right about everything. I'm sure Buffet has missed out on many opportunities as do all other investors. I'm sure he's lost millions on certain ventures and I can tell you he's obviously lost tens of millions by not investing in bitcoin as well. I'm not even going to claim that his opinion is wrong here because only time will tell on that front, but I think his thinking is a little outdated on this and he's a bit of a dinosaur these days when it comes to investing (the guy doesn't even own a mobile phone so I'm not sure how he could wrap his head around the potential of the bitcoin and blockchain technology). Could bitcoin be a giant bubble? Of course it could. Will it? I don't know... I really hope not, but even if it was he still could have made millions if not billions on it in the meantime. Just look at the Winklevii twins and how much money they made by having the balls and intelligence to buy into what they see as both a revolutionary idea and the huge potential it has as an investment... and they weren't wrong. They're now billionaires all from an 11 or so million dollar investment I believe. So what do I say to Buffet? Only time will tell but I'm sticking with bitcoin at least for the time being and he can stick to buying stocks in whatever companies he does but there's not really much difference between the two and even if bitcoin does turn out to be a bubble that doesn't mean you could have profited in the millions from it in the process.

[Diablesfunis]

Well he did say that he never invest into something that he doesn't understand so it's not weird that he isn't into bitcoin. It's his principle and we can force him to change that because we believe bitcoin is the future. Bitcoin is going to be big even without Warren buffet.

[dimastegar]

I think He's not too greedy to take advantage in every Field, including Cryptocurrency Fields. And I think He has enough with the investment he has today. Therefore I think that He is not one who wants to always take advantage of a Cryptocurrency trend.

[Marileno]

He is a value investor looking for under priced assets that yield a return on equity which is favourable. His way of valuing businesses and assets which lead him to value 1 bitcoin at $0. It has no inherent value and it pure speculation. it is also the reason why he has never and will never hold any gold.

[Crown1]

I think his vision has not kept pace with the development of The Times. In the future, he will regret that he did not invest in the blockchain and invest in bitcoin. Many institutions have changed their views on bitcoin.

[penig]

I think his vision has not kept pace with the development of The Times. In the future, he will regret that he did not invest in the blockchain and invest in bitcoin. Many institutions have changed their views on bitcoin.

His vision?  He's an investment strategist, not a futurologist. I'm sure the billionaire has no financial regrets.   

[bountyjunkie]

first of all, how do you know he has not invested in bitcoin? are you inside his pocket that you know where every single dollar of his is going to?

additionally, people like Warren Buffet doesn't really need bitcoin. it actually is too small for them to even look at it twice. you see bitcoin rise and think it is big but in their eyes it is tiny!
 
in fact Buffet is the major shareholder in one of the world's biggest financial services with the revenue of $210 billion. and his shares broke $300,000 per share yesterday! you think he cares about tiny bitcoin that he can not own majority of? LOL

No, Mate. I'm have not been inside his pocket. He implies so as quoted by Forbes. May be its too small for him but I'm asking if he is right in his judgement of bitcoin as a bubble.

[Kingofbitcoin12345]

Even a genius man can do mistakes,, what more warren buffet?. Humans are prone to miscalculation if the matter tackles emotional attachment and personal principles.. Even with his vast experience in investment and as an expert in that field,, he is not open~minded to an orthodox or unfamiliar technology that happens instantly without proper marketing or advertising from mainstream..

[HappyLocust41]

He probably didn't have the luxury of time to learn about Bitcoin and how it works. That causes someone to misunderstand and be afraid to invest.

[bitcoinKnight809]

He probably didn't have the luxury of time to learn about Bitcoin and how it works. That causes someone to misunderstand and be afraid to invest.

Well, I doubt that he understood Bitcoin as well since if he did, he would have already invested even just a portion of his holdings.

[BumbleBeast27]

Probably busy with other stuff? And you're right. If he only knew the potential that Bitcoin had. Well, some opportunities are not meant for everyone.