Warren Buffet has some very wise words. Crypto applicable.

[raven7886]

Warren buffet had a shorter version of this, he said "fear when others are greedy and be greedy when others fear".

Basically, a low market means cheap stocks, if you look at stocks right now most of them do not even deserve the price they are in and basically all cheap just because the market went down, sometimes a company can do well, stock can go up and everything can seem like its going great and all of a sudden stock could take a crash down just because market is bad even if the company is doing well.

Even during these times all the tax cuts made by the government is used to purchase buybacks and that didn't happen during 2008 year as much, that is because during 2008 many companies actually went bankrupt whereas this years deal wasn't because of bad performing companies and they realized their own companies worth more than the stock and did a buyback.

Definitely could apply to bitcoin and crypto in general.

[deisik]

I do not see why people who are involved in cryptocurrency show so much admiration for Buffett? Is that because of the enormous wealth he created for himself and some people around them, and in the same time has created a poverty all around the world? Why one man need 87$ billion, and tens of thousands of people die each day from starvation and curable diseases?

Let's cut the crap here, mate

Most people are involved in Bitcoin for profits, even if some of them may claim to the contrary, and it is kinda normal. Buffett has proved that he certainly knows his shit, i.e. knows how to earn money. So it doesn't matter what he thinks about Bitcoin (we all know what he thinks). It is his skills, expertise and life experience in general which are of interest to us. Yes, he does mistakes (which he evidently admits) but it doesn't take anything from his wisdom (actually, it may even add more value to it). Well, this is what I think at least (you may think different, I don't mind)

[Ridwan Fauzi]

Actually, I less able to make people aware against who have an investment specially when they had experienced a loss and charge them to keep believing in the place of investment that he chooses, in this case the choose cryptocurrency. Agree, cryptocurrency experienced a violent clash last year and made many investors went home with a loss and force them to spread bad suggestions to new investors who intend to invest, might many people have seen several FUDs that spread in this forum.

I believe this thread (article) can provide a new perspective for everyone who experiences a loss, not all investment places will provide benefits at any time even though it's gold. Many phases must be passed to become an investment place that can be trusted by many people. And I'm sure cryptocurrency is meeting a phase where the phase provides a challenge for each investor. Yeah, everyone who gives up will always find a dead end wherever he goes, in contrast to someone who is always sure of the way he chooses, he will always pursue the desired target despite finding a steep road.

Well done OP.

[Lucius]

I do not see why people who are involved in cryptocurrency show so much admiration for Buffett? Is that because of the enormous wealth he created for himself and some people around them, and in the same time has created a poverty all around the world? Why one man need 87$ billion, and tens of thousands of people die each day from starvation and curable diseases?

Let's cut the crap here, mate

Most people are involved in Bitcoin for profits, even if some of them may claim to the contrary, and it is kinda normal. Buffett has proved that he certainly knows his shit, i.e. knows how to earn money. So it doesn't matter what he thinks about Bitcoin (we all know what he thinks). It is his skills, expertise and life experience in general which are of interest to us. Yes, he does mistakes (which he evidently admits) but it doesn't take anything from his wisdom (actually, it may even add more value to it). Well, this is what I think at least (you may think different, I don't mind)

I see you are just one of them, and because of people like you we have what we have today, a world in which one spends billions in a day and others work for 1$ a day or even less. Buffett knows nothing, he is just one more greedy person, nothing more. I do not like him, and more than that I can not stand people who respect him just because he is sickly rich.

I am not interesting in some quick profit with BTC, it is much more for me - but if you think Buffett is smart person you should listen to him back from 2014 and stay away from BTC.

[deisik]

I do not see why people who are involved in cryptocurrency show so much admiration for Buffett? Is that because of the enormous wealth he created for himself and some people around them, and in the same time has created a poverty all around the world? Why one man need 87$ billion, and tens of thousands of people die each day from starvation and curable diseases?

Let's cut the crap here, mate

Most people are involved in Bitcoin for profits, even if some of them may claim to the contrary, and it is kinda normal. Buffett has proved that he certainly knows his shit, i.e. knows how to earn money. So it doesn't matter what he thinks about Bitcoin (we all know what he thinks). It is his skills, expertise and life experience in general which are of interest to us. Yes, he does mistakes (which he evidently admits) but it doesn't take anything from his wisdom (actually, it may even add more value to it). Well, this is what I think at least (you may think different, I don't mind)

I see you are just one of them, and because of people like you we have what we have today, a world in which one spends billions in a day and others work for 1$ a day or even less. Buffett knows nothing, he is just one more greedy person, nothing more. I do not like him, and more than that I can not stand people who respect him just because he is sickly rich.

I am not interesting in some quick profit with BTC, it is much more for me - but if you think Buffett is smart person you should listen to him back from 2014 and stay away from BTC.

Ironically, Buffett is really a smart person

As he was telling what was going to happen and really happened. If people actually listened to him and what he was telling about crypto, we wouldn't have so many disappointed and despaired, hapless and hopeless bagholders now. And even more ironically, without them, without all this relentless speculation, we might have been much better off in terms of adoption by now. As you can see, things are more complicated than they look at first glance

[Lucius]

Ironically, Buffett is really a smart person

As he was telling what was going to happen and really happened. If people actually listened to him and what he was telling about crypto, we wouldn't have so many disappointed and despaired, hapless and hopeless bagholders now. And even more ironically, without them, without all this relentless speculation, we might have been much better off in terms of adoption by now. As you can see, things are more complicated than they look at first glance

It may be smart for you, but for me it's a pretty stupid person if we look at his statements from 2013/2014 where he say bitcoin is just a mirage or tulips. How a smart person can miss the opportunity to make big profit, was not it wise to invest in bitcoin back in 2013 maybe?

Let's look at an example of investment back in 2013. Buffett have around 49$ billion at that time, and bitcoin price was 130$, so if he was smart and invest in bitcoin maybe only 1$ million, today value of that coins would be 7692 BTC times 3400$ = 26 152 800$.

Many others (maybe even you) listen Buffett at that time, and many follow him today when he say bitcoin is mirage, tulips or rat poison. He was wrong at that time, and he is wrong today - and he is against bitcoin and cryptocurrency, but you say he was right? Very strange thinking, but maybe not for person who buy at the time when others sells...

[deisik]

Ironically, Buffett is really a smart person

As he was telling what was going to happen and really happened. If people actually listened to him and what he was telling about crypto, we wouldn't have so many disappointed and despaired, hapless and hopeless bagholders now. And even more ironically, without them, without all this relentless speculation, we might have been much better off in terms of adoption by now. As you can see, things are more complicated than they look at first glance

It may be smart for you, but for me it's a pretty stupid person if we look at his statements from 2013/2014 where he say bitcoin is just a mirage or tulips. How a smart person can miss the opportunity to make big profit, was not it wise to invest in bitcoin back in 2013 maybe?

Well, Warren Buffett is not a god after all

Personally, I don't agree with him and his words on Bitcoin, but we should take into account which business and investment environment he comes from. It just means that we shouldn't blindly trust anyone and their word, be it in favor of crypto or against it. On the other hand, I perfectly well understand why Buffett and investors of his caliber may not be interested in Bitcoin. It is simply too small and too risky, so it is not worth it to them

Let's look at an example of investment back in 2013. Buffett have around 49$ billion at that time, and bitcoin price was 130$, so if he was smart and invest in bitcoin maybe only 1$ million, today value of that coins would be 7692 BTC times 3400$ = 26 152 800$

If he invested 1M, he might in fact have been able to profit handsomely in %% terms. But 26M millions is simply dust to him in absolute terms. But if he invested 1B, he would be a bagholder by now. I leave it to you to guess why

[biskitop]

very interesting article. that's what we really have to do now when the bear market doesn't go away, and the anticipated bull run doesn't come. so we have two decisions, become survivors, or become surrenders.

[Thanasis]

Need to take big risk when we want to make more money like warren Buffet so you also have to buy the cryptos at very cheaper prices to make more out of it when the prices keep going bullish.The time taken for the prices to increase may be longer but you need to sustain your Hold until to make you as successful investor or there is no point of investing onto something.

[deisik]

Warren buffet had a shorter version of this, he said "fear when others are greedy and be greedy when others fear".

Basically, a low market means cheap stocks, if you look at stocks right now most of them do not even deserve the price they are in and basically all cheap just because the market went down, sometimes a company can do well, stock can go up and everything can seem like its going great and all of a sudden stock could take a crash down just because market is bad even if the company is doing well

With all due respect (to Warren Buffett), I don't think his words are fully applicable to cryptocurrencies. All in all, Buffett's logic is pretty simple and straightforward. He correctly assumes that after some years of decline, there will inevitably be a new rise, even a new life if you please, and the companies which are producing real value will be more valued in the future. And then it makes sense to buy them when the market is bleeding. That's what his famous "fear when others are greedy and be greedy when others fear" is all about

But with cryptocurrencies it is way different

[BitBustah]

I appreciate the comparison and it is true that timing the markets is nearly impossible to do.  The stock market has alwars recovered and will most likely continue to do so but Warren Buffet would be the last person to ever invest in cryptocurrency

[deisik]

Need to take big risk when we want to make more money like warren Buffet so you also have to buy the cryptos at very cheaper prices to make more out of it when the prices keep going bullish.The time taken for the prices to increase may be longer but you need to sustain your Hold until to make you as successful investor or there is no point of investing onto something

Cryptocurrencies are not like stock

I mean like blue chips and other top level stocks. The companies behind these stocks have been sticking around for decades, with some for over a hundred years already (for example, IBM), so it is unlikely they are going to disappear soon, though there is no 100% certainty or guarantee either (for example, Lehman Brothers)

In other words, it is highly unlikely that you will lose your investments even if the whole economy goes downhill tomorrow. Obviously, it is not the case with cryptocurrencies. Even Bitcoin is not guaranteed to stay afloat in the next 5-10 years, while the rest of the pack is more like trash stocks anyway

[voltesbit777]

I have been asked a lot recently by members in here, what my position is on the current Bear market for Cryptos.
I think that this man is brilliant, and he gives the sentiment of myself and many members in here. So, this is your reminder.....  


Warren Buffett suggests you read this 19th century poem when the market is tanking.

Published Mon, Dec 17 2018 • 3:48 PM EST • Updated Mon, Dec 17 2018 • 4:04 PM EST
Kathleen Elkins
@KATHLEEN_ELK

Warren Buffett, Chairman and CEO of Berkshire Hathaway.Adam Jeffery | CNBC
The stock market has had a volatile year, and it’s not over yet: The Dow Jones Industrial Average lost more than 520 points on Monday and the S&P 500 fell 2.1 percent. Both are in correction and on pace for their worst December performance since the Great Depression in 1931.

But for the average person, shifts in the market, even ones as dramatic as the ones we’ve seen this year, shouldn’t be cause for panic. During times of volatility, seasoned investor Warren Buffett says it’s best to stay calm and stick to the basics, meaning, buy-and-hold for the long term.

So, during downturns, “heed these lines” from the classic 19th century Rudyard Kipling poem “If—” which help illustrate this lesson, Buffett wrote in his 2017 Berkshire Hathaway shareholder letter:

If you can keep your head when all about you are losing theirs ...
If you can wait and not be tired by waiting ...
If you can think – and not make thoughts your aim ...
If you can trust yourself when all men doubt you ...
Yours is the Earth and everything that’s in it.

Market downturns are inevitable, Buffett pointed out, using his own company as an example: “Berkshire, itself, provides some vivid examples of how price randomness in the short term can obscure long-term growth in value. For the last 53 years, the company has built value by reinvesting its earnings and letting compound interest work its magic. Year by year, we have moved forward. Yet Berkshire shares have suffered four truly major dips.”

He went on to cite each of the steep share-price drops, including the most recent one from September 2008 to March 2009, when Berkshire shares plummeted 50.7 percent.

Major declines have happened before and are going to happen again, he says: “No one can tell you when these will happen. The light can at any time go from green to red without pausing at yellow.”

Rather than watch the market closely and panic, keep a level head. Market downturns “offer extraordinary opportunities to those who are not handicapped by debt,” he says, which brings up another important investing lesson: Never borrow money to buy stocks.

“There is simply no telling how far stocks can fall in a short period,” writes Buffett. “Even if your borrowings are small and your positions aren’t immediately threatened by the plunging market, your mind may well become rattled by scary headlines and breathless commentary. And an unsettled mind will not make good decisions.”

HODL

This is the only things I understand on Warren buffet wise words, which I think has applicable in crypto and this was
" During times of volatility, seasoned investor Warren Buffett says it’s best to stay calm and stick to the basics, meaning, buy-and-hold for the long term." Since Bitcoin and crypto so far was declined or down market we really should take advantage to buy and hold for the long term, this was a very effective methods for us to have a huge profit in the future.

[OnePercent]

I do not see why people who are involved in cryptocurrency show so much admiration for Buffett? Is that because of the enormous wealth he created for himself and some people around them, and in the same time has created a poverty all around the world? Why one man need 87$ billion, and tens of thousands of people die each day from starvation and curable diseases?

Buy low, sell high - hold for long term, most of people know that. Even Buffett make mistakes, he is not some amazing man who can predict future. He lost close to 4$ billion in one day just on m/2018/11/02/warren-buffett-loses-nearly-4-billion-in-single-day-on-his-apple-stake.html]Apple's stocks, and few more billions on other investments.

What's more tragic for him that he bought more Apple shares just few months before big crush.

I do not see why some people have so much hate on Buffett either. Even if Warren Buffett does not exist, his 87 Billion net worth would simply spread out and be owned by many different wealthy individuals and that will not change the fact that people will still die from starvation and curable diseases everyday. In fact, he is making things better for those people since he donated a big chunk of his wealth towards that cause and has pledged to give the rest away when he dies.
Are you telling me if he did not own those 87 billion, the world would be better than it is now? Wake up please, if the 87B is owned by other people, I am sure not even 20% of that is going towards those dying from hunger.

From your comments I can tell you don't even understand what value investing is. The 4B you are talking about is "Quotational Loss". You only incur loss when you sell the stock. For Warren it is actually an opportunity to  buy more Apple stocks at discounted prices, not tragic at all like you said it was.

Warren is just an individual like you are, the burden of saving people from hunger and diseases is not his alone. Have you contributed to humanity more than he did?

[deisik]

I do not see why some people have so much hate on Buffett either. Even if Warren Buffett does not exist, his 87 Billion net worth would simply spread out and be owned by many different wealthy individuals and that will not change the fact that people will still die from starvation and curable diseases everyday. In fact, he is making things better for those people since he donated a big chunk of his wealth towards that cause and has pledged to give the rest away when he dies

I don't think that people over here hate him so much for his wealth (we are not that cheap) as for his words on cryptocurrencies and overall negative stance on crypto in general. Personally, I don't care what he thinks about crypto at all (this doesn't change my high esteem of him in the least), but I do understand that his words may sound very insulting to a lot of people here

That essentially proves how much they care about his opinion and attitude, whatever they may say to the contrary

Are you telling me if he did not own those 87 billion, the world would be better than it is now? Wake up please, if the 87B is owned by other people, I am sure not even 20% of that is going towards those dying from hunger

Governments are wasting literally trillions they get in taxes and via inflation (aka money printing), while his 87 billions is a drop in the bucket (even if he was literally idly sitting on all those billions)

[shield132]

Major declines have happened before and are going to happen again, he says: “No one can tell you when these will happen. The light can at any time go from green to red without pausing at yellow.”

Those quotes of Berkshire Hathaway shareholder letter are written in so different way, this words would be better instead of what I quoted now: Light will find us even if it blinds us. This light is bitcoin's high price which will happen in anyway, bitcoin will reach it's all time high, but current low price blinds us and makes us to make wrong decisions. When price will rise, those who didn't hold will be dissapointed because of current mistake.

[OnePercent]

I do not see why people who are involved in cryptocurrency show so much admiration for Buffett? Is that because of the enormous wealth he created for himself and some people around them, and in the same time has created a poverty all around the world? Why one man need 87$ billion, and tens of thousands of people die each day from starvation and curable diseases?

Let's cut the crap here, mate

Most people are involved in Bitcoin for profits, even if some of them may claim to the contrary, and it is kinda normal. Buffett has proved that he certainly knows his shit, i.e. knows how to earn money. So it doesn't matter what he thinks about Bitcoin (we all know what he thinks). It is his skills, expertise and life experience in general which are of interest to us. Yes, he does mistakes (which he evidently admits) but it doesn't take anything from his wisdom (actually, it may even add more value to it). Well, this is what I think at least (you may think different, I don't mind)

I see you are just one of them, and because of people like you we have what we have today, a world in which one spends billions in a day and others work for 1$ a day or even less. Buffett knows nothing, he is just one more greedy person, nothing more. I do not like him, and more than that I can not stand people who respect him just because he is sickly rich.

I am not interesting in some quick profit with BTC, it is much more for me - but if you think Buffett is smart person you should listen to him back from 2014 and stay away from BTC.

People like you promoting equality doesn't make the world better anyway. It's just all theory and talk. In theory it sounds good and all but in reality You have no way of implementing it.

Socialism and Communism eventually lead to extreme corruption. Plenty of examples right now if you look around.

You saying Buffett knows nothing in investing is like a high school basketball player saying Michael Jordan doesn't know how to play basketball.

By the way, I don't respect him because he is rich. I respect him because he is humble and genuine.

[deisik]

Most people are involved in Bitcoin for profits, even if some of them may claim to the contrary, and it is kinda normal. Buffett has proved that he certainly knows his shit, i.e. knows how to earn money. So it doesn't matter what he thinks about Bitcoin (we all know what he thinks). It is his skills, expertise and life experience in general which are of interest to us. Yes, he does mistakes (which he evidently admits) but it doesn't take anything from his wisdom (actually, it may even add more value to it). Well, this is what I think at least (you may think different, I don't mind)

I see you are just one of them, and because of people like you we have what we have today, a world in which one spends billions in a day and others work for 1$ a day or even less. Buffett knows nothing, he is just one more greedy person, nothing more. I do not like him, and more than that I can not stand people who respect him just because he is sickly rich.

I am not interesting in some quick profit with BTC, it is much more for me - but if you think Buffett is smart person you should listen to him back from 2014 and stay away from BTC.

People like you promoting equality doesn't make the world better anyway. It's just all theory and talk. In theory it sounds good and all but in reality You have no way of implementing it.

Socialism and Communism eventually lead to extreme corruption. Plenty of examples right now if you look around

But isn't blockchain supposed to fight corruption?

Kidding aside, people may say various things but all people will be very much alike when the question is about their own profits. As the saying goes, charity begins at home. It is not like people envying Buffett (he is too rich for that and too far away), it is more like criticizing him makes people feel like they are on par with him, and still more so because his ways are humble, genuine and authentic

[Lucius]

I do not see why some people have so much hate on Buffett either. Even if Warren Buffett does not exist, his 87 Billion net worth would simply spread out and be owned by many different wealthy individuals and that will not change the fact that people will still die from starvation and curable diseases everyday. In fact, he is making things better for those people since he donated a big chunk of his wealth towards that cause and has pledged to give the rest away when he dies.
Are you telling me if he did not own those 87 billion, the world would be better than it is now? Wake up please, if the 87B is owned by other people, I am sure not even 20% of that is going towards those dying from hunger.

From your comments I can tell you don't even understand what value investing is. The 4B you are talking about is "Quotational Loss". You only incur loss when you sell the stock. For Warren it is actually an opportunity to  buy more Apple stocks at discounted prices, not tragic at all like you said it was.

Warren is just an individual like you are, the burden of saving people from hunger and diseases is not his alone. Have you contributed to humanity more than he did?

I do not know what you are doing at all in the forum for cryptocurrency defending some old fart like Buffett? He was and he is still against BTC, and by spreading lies he did and he still make a lot of damage for cryptocurrency. He is individual with lot of money, and money is power which people admire, so many listen to his advice spreading same stupid things he say about BTC.

He is not only one in this dirty game of getting richer day by day, but he is one of 1% of world population richest people who own 50% of world's wealth. On the other side 3.5 billion people have only 2.7 % of all global wealth, and they need to live with that.

I know what Buffett is lost, shares lost value, but one day they can go up again - same as BTC, so if you hold, there is chance you will get your money back. I did not say that because of what you think, but for a reason to show Buffett is not a so smart person as some people want to show it.

I help people in any way I can every day, and I am not sitting on billions and pretend to doing some good work for people by donate crumbs from my table.

[befriendmywater]

 That's what I want to tell the panicked investors when they lose too much money. I studied finance at university and I had a look at the economic situation statistics from 2000 to 2016. It happened 4 periods of recession and only one crisis period economy.
We are in a recession and we need to be calm. It will take 2 years for the market to go down and it will take 2 years for the market to grow again.
So I advise people to hold on instead of shooting and exit the crypto market.