By CCN: It is far from this columnist to criticize one of the most successful stock market investors all the time, but perhaps Warren Buffett is just jealous of bitcoin. A stock market genius that started investing in 11-year-old Buffetts company Berkshire Hathaway is now following the S&P 500. It must happen.
Worse, over the past decade it has been better to put their money into S & P 500 than the company's share. The Financial Times, who interviewed Buffett, did the math, and said investing $ 1 in each Berkshire Hathaway and a S&P fund 10 years ago, would be worth $ 2.40 and $ 3.20 today, respectively. Ouch.
Not to pour salt into the wound, but unlike Berkshire Hathaway, bitcoin ̵[ads1]1; which Buffett once referred to as "rat poison squared" – has pulled the stock market. Perhaps it is not bitcoin that is dangerous for investors' health.
Salt in Buffett's wound
For over five decades, Berkshire Hathaway has surpassed S & P 500 "by 2.5 million percentage points," according to FT. Therefore, it is so shocking that the stock has delayed over the last 10 years.
Meanwhile, as CCN previously reported, the bitcoins return of more than 400% over the past two years has far exceeded the approximately 20% returns generated by the S&P 500. If Buffet's stock can't beat S & P 500 for investors, no wonder he has an ax to paint with bitcoin, just doing it.
Two year return:
S & P 500: 19.9%
Bitcoins non-correlated, Asymmetric character makes it crucial that each portfolio includes some exposure to the digital currency. #GetOffZero
– Pomp 🌪 (@APompliano) April 23, 2019
His Achilles heel is high-tech, not just crypto. Buffett avoids FANG stocks – Facebook, Amazon, Netflix and Google's parenting – and most technologies at all costs (except Apple), and that's what has boosted stock market profits.
– Becky Quick (@BeckyQuick) May 5, 2018
As one of the richest people on the planet, has been true to itself, has paid dividends for Buffett. He only invests in companies whose business models he gets. But what have you done for me lately? Buffett himself admits that the prospect of Berkshire Hathaway is no better than that of the broader stock market, says Financial Times:
"I think this: If you want to join something that might have a little expectation better [returns] than S & P, I think we can be the safest. "
Any chance to beat S&P? Don't hold your breath.
"If we were lucky," Buffett told the FT.
Rebel with a cause
Not all stocks are high-growth and Buffett's conservative style has earned him well over the years. He has a history of under-promising and surrendering. Bitcoin is the opposite. The community eats up bullish price predictions. In fact, the higher, the better, and in many ways, it has become a self-fulfilling prophecy. Bitcoin is not Buffett's style, he has made it clear. But maybe somewhere deep down, he's really just jealous of something that challenges his investment mantle, not to mention it's on a hot line. There is no balance, no product that you can taste or feel. It's unpleasant for Buffett, who, according to FT, has consumed 25% of his "caloric intake" from Coca-Cola, a stock where he picks up $ 1 billion in the 1980s. This narrated narrator makes him comfortable?
Still, bitcoin has and continues to test the odds. Bitcoin is a rebel, but not one for no reason. It has a clear mission of decentralization, and it has been effective to democratize the opportunities. Buffett does himself badly if he fails to recognize this even though Berkshire Hathaway never has any bitcoin.