Warren Buffett's obsession with physical things, gets in his way to see the gem

[Kakmakr]

During the recent Berkshire Hathaway annual shareholder meeting at the CHI Health Center in Omaha, Nebraska, Buffett was once again asked to share his thoughts on BTC, this time calling it a “seashell” and saying that it “doesn’t do anything.”

Source : https://www.newsbtc.com/2019/05/04/warren-buffett-claims-bitcoin-is-like-a-seashell-in-his-latest-attack-on-crypto/

“I’ll tear off a button here. What I’ll have here is a little token...I’ll offer it to you for $1000, and I’ll see if I can get the price up to $2000 by the end of the day...But the button has one use and it’s a very limited use.”  - Comparing Bitcoin with one of his jacket pockets.  

Source : https://cointelegraph.com/news/berkshire-hathaway-ceo-warren-buffett-offers-fresh-metaphor-for-bitcoin-as-a-seashell

He was also rumored to have said that if he wrote a cheque for $1 000 000, that check is backed by $1 000 000 at the Bank. <Again some tangible thing, he can touch>

Now, I bet you that Warren Buffet have never bought a digital item for an online game before or used a virtual voucher to buy things online. He does not grasp, that what he has not experienced before and he needs physical contact with something to make it real.

His shares in Coca-Cola becomes physical when he drinks a Cherry Coke or when he puts Heinz Tomato sauce on his fries. <He owns shares in both>

We are moving into a new digital revolution, where digital items have value and Berkshire Hathaway's investment in Amazon shares shows that his advisors are seeing that value. <He admits that he did not make the decision to buy Amazon shares>

Source : https://www.cnbc.com/2019/05/03/berkshire-hathaway-has-been-buying-shares-of-amazon-warren-buffett.html

So, hopefully someone at Berkshire Hathaway might see the value of digital tokens in the future and realize that Warren Buffet's obsession with physical items might be his downfall in the future.  

Bitcoin is a digital item, not a Jacket button or a seashell, if he wants a physical item, give him a paper wallet. 

[mk4]

Now, I bet you that Warren Buffet have never bought a digital item for an online game before or used a virtual voucher to buy things online. He does not grasp, that what he has not experienced before and he needs physical contact with something to make it real.

This is pretty much the reason why he doesn't get it. And knowing that he mostly doesn't even look at things by their use case, but mostly only by their investment potential. Hence why we've seen him saying that Bitcoin doesn't do anything as an investment whereas a farm can yield him profit annually. This is honestly one of the reasons why I was actually looking forward to the dinner whereas some people(with Justin Sun  ) would explain to him what Bitcoin can actually do.

[gentlemand]

So, hopefully someone at Berkshire Hathaway might see the value of digital tokens in the future and realize that Warren Buffet's obsession with physical items might be his downfall in the future. 

I'm intrigued to know whether he's laid down commandments for his successors or simply trusts them to get on with it however they see fit.

Regardless of what happens in terms of digital economies developing there'll always be a 'physical' one too. People need food, utilities, travel etc. That's their market and they're clearly good at it. If I were them I'd stick to it.

Neil Woodford is a cautionary tale as to what happens when someone diverges from a previously successful direction - https://www.theguardian.com/business/2019/jun/08/neil-woodford-fund-manager-rise-and-fall-investors-bright-star-black-hole

 

[BitHodler]

I think it's not just that Bitcoin isn't inherently a physical object, but also the whole idea behind it-- Buffett has never really gone through any problems with either a financial institution or a government.

This system is what allows him to become and stay successful, so why would he even bother investing in Bitcoin? I respect his way of doing business despite him being so disrespectful towards Bitcoin and the people owning it.

People should stop focus on Buffett and spend more time educating people who are actually interested in this technology. It's a much better allocation of your time and benefits every Bitcoin enthusiast.

[eternalgloom]

I think it's not just that Bitcoin isn't inherently a physical object, but also the whole idea behind it-- Buffett has never really gone through any problems with either a financial institution or a government.

This system is what allows him to become and stay successful, so why would he even bother investing in Bitcoin? I respect his way of doing business despite him being so disrespectful towards Bitcoin and the people owning it.

People should stop focus on Buffett and spend more time educating people who are actually interested in this technology. It's a much better allocation of your time and benefits every Bitcoin enthusiast.

I wouldn't actually call it being disrespectful, he just applies his own knowledge to Bitcoin and I can very well imagine why he says those things.
If you're not somewhat acquainted with Bitcoin, then it does appear as though it's something which doesn't have any real-world use.

People also keep asking him about Bitcoin, just because he's one of the most successful investors out there.
But it's commonly known that WB sticks to investments that he understands, so why would he say anything positive about Bitcoin?

[Lucius]

It's really hard for me to understand that some people are incredibly fascinated with Buffett, and in same time they are on cryptocurrency forum which should be about Bitcoin and not about why some dinosaurs persistently refuse to use new technologies.

Would we as crypto-community should try to change his mind, convince him to get into Bitcoin? Do you want Buffett invest few billion in Bitcoin, pump price and then dump all, and send us at the crypto beginning?

I do not see any reason that this person is even mentioned in the forum, he is all about making money, he is 100% against cryptocurrency and he call us with not very pleasant names.

[fiulpro]

He is 88 years old , and actually I do think that someone of his age would actually prefer the money and the physical things , that's natural for him , he isn't the one who is with the idea of risking things and making investments into things that might take off any value any moment.
Well that's this point of view , not the younger generation's , as opposed to him actually we are more flexible with things like this and this is just an upbringing you can say , we are what our environment is like.
I think that man just says Things according to his own accord and that's what he was asked to do.
So no harsh feelings.

[BitHodler]

I wouldn't actually call it being disrespectful, he just applies his own knowledge to Bitcoin and I can very well imagine why he says those things.

It is disrespectful when you call Bitcoin rat poison and laugh when your fellow Berkshire Hathaway board member Charley Munger refers to people here as traders of harvested baby brains. It's disgusting too.

So tell me, how do you interpret the above statements? Can you understand that too?

People also keep asking him about Bitcoin, just because he's one of the most successful investors out there.
But it's commonly known that WB sticks to investments that he understands, so why would he say anything positive about Bitcoin?

Why would he say anything negative about Bitcoin? If someone asks me about something I'm not interested in, I'll just tell that person that I have no clue and don't really care either, and leave it at that.

I have seen other high level investors do exactly that and this is how it should be. It's easier and less of a hassle to follow that route because it would discourage the media from asking the same stupid question over and over.

[mk4]

Would we as crypto-community should try to change his mind, convince him to get into Bitcoin? Do you want Buffett invest few billion in Bitcoin, pump price and then dump all, and send us at the crypto beginning?

Ehh honestly this is pretty much one of the main reasons why people in the space are so obsessed with Buffett. Once we hear a single positive statement about Bitcoin from Warren Buffet, crypto news sites will flood the web with articles saying something along the lines of "Warren Buffet now converted from Bitcoin hater to Bitcoin believer" or something.

[gentlemand]

Ehh honestly this is pretty much one of the main reasons why people in the space are so obsessed with Buffett. Once we hear a single positive statement about Bitcoin from Warren Buffet, crypto news sites will flood the web with articles saying something along the lines of "Warren Buffet now converted from Bitcoin hater to Bitcoin believer" or something.

Yeah. I find stuff like this a little distasteful. It's indicative of the rarely voiced but regularly implied desire for permission from the old guard. You'd hope that the people involved in this don't require that but there's a real hunger for it.

I get why but people should stop caring and carry on carrying on.

[pawanjain]

There are times when a successful person is that successful because of his right decisions. It's obvious that he would have made some wrong decisions too.
But that doesn't decreases his success rate at all. So it might be that his theory of not investing in digital assets is wrong but his investments in physical assets is what have made him rich.
So we can't blame him because he has made decisions which are right for him. Even if he doesn't acknowledge the potential of bitcoin and invest in it, it won't decrease is portfolio.
But we do realise the potential of bitcoin and other valuable cryptocurrencies, hence it is upto us whether we should invest in it or not.

[1Referee]

Warren Buffett is a business genius. He doesn't have to touch Bitcoin itself but could very well end up buying up a dominant exchange and still benefit from the massive exposure crypto in general has. Technically speaking, the banks in his portfolio will eventually come up with their own trading desk, so there is another form of exposure to crypto he will have.

These businesses generate cash flow and profits, which is exactly what he is after. In the end, it doesn't matter how negative someone is about a specific industry, if there is money to be made in a manner they are comfortable with, they will definitely enter. In Warren's case, it's more likely going to be the businesses he will be investing in, directly or indirectly.

[rdluffy]

I don't know why you guys are obsessed with Warren Buffet, yes he's probably the best man of investments, but he's not interested in BTC, he already have his portfolio and know how to manage
There's no problem for BTC if a guy like him is not interested, we should worry more about tech guys and tech companies

It's like saying Mark Zuckerberg don't like petroleum and the market of petro will suffer

[mk4]

So it might be that his theory of not investing in digital assets is wrong but his investments in physical assets is what have made him rich.

As far as I know, it's not "physical" assets that made him rich, I mean, I'm pretty sure stocks are purely digital. It's that he mostly picks the safer investments. I'm pretty sure even if someone actually convinces him that Bitcoin actually is not something that does nothing like he himself said, he still wouldn't invest in it due to the simple reason that it's a high risk speculative asset.

[BrewMaster]

So, hopefully someone at Berkshire Hathaway might see the value of digital tokens in the future and realize that Warren Buffet's obsession with physical items might be his downfall in the future. 

the world doesn't divide into adopt bitcoin or be annihilated. bitcoin is just a small part of this world and Warren Buffet will still be big even if he or his companies never touch bitcoin ever or ever get close to anything called "cryptocurrency"!

however, what i don't get is that why do they keep asking him about bitcoin? it is not like he has ever shown any interest or have any kind of knowledge in the matter!

[asajapheth]

As far as I know, it's not "physical" assets that made him rich, I mean, I'm pretty sure stocks are purely digital.

Warren Buffet is very popular for investing in stocks, and it is believed he made most of his money through stocks. At least, that is what most people think. But that is not entirely true. Buffet has made so much from real estate.

Warren is a smart Investor he would rather make an honest and intelligent judgement of what an asset can produce for an owner and if the present price correlates, before he buys it. He uses same logic in real estate and stocks.

I guess you'd agree real estate is physical.

[asajapheth]

It may not just be because bitcoin is not physical that Warren Buffet does not publicly associate himself with it. He has investments in financial institutions; billions of dollars im Wells Fargo, Bank of America and American Express.

That is billions of reasons for him to spread FUD about Bitcoin and protect his money. Bitcoin will turn the model of wealth as we know it upside down, if it were to have wider adoption. Who loses? Definitely Warren.

[asajapheth]

however, what i don't get is that why do they keep asking him about bitcoin? it is not like he has ever shown any interest or have any kind of knowledge in the matter!

I think it is redundant. He may even have some bitcoin in a cold storage, but wouldn't want the FUD to affect his other assets.

[Artemis3]

He was also rumored to have said that if he wrote a cheque for $1 000 000, that check is backed by $1 000 000 at the Bank.

Backed by the bank huh? So he is trusting a promise a third party pledged to do on his behalf. He seems to forget the part where, in between the moment he writes his check and the time you take to go cash it, that very bank could go bankrupt. Because, hello? fractional reserve banking. Mr Warret doesn't know 90%+ of the world's fiat currency doesn't exist anywhere? He probably does and made some good money of that system...

Sorry, but a promise is not tangible. In fact if anything Bitcoin does, is that you don't have to trust anyone, unlike cheques, the Bitcoin network ensures this without any third parties: No financial institutions, no governments, it works by code and secured by math, something his old fashioned words won't ever achieve.

Funny who is the one talking about tangibles. Hey, write your seed words in a piece of paper, there is your tangible. Its even better than a check...

[Coyster]

Every now and then, Warren Buffet has one negative thing or the other to say about the bitcoin, and I keep wondering why someone who shows no interest in the network, should keep making comments about it, maybe probably this is an attempt at spreading negative news about bitcoin.

Warren doesn't need the bitcoin(he is wealthy already), the bitcoin network likewise doesn't need him