In the beginning of 2020, Warren Buffet was offered to buy Bitcoin. Back then, he said no. But does he regret it now?
00:00 Back in January 2020, Warren Buffett was offered to buy bitcoin during a lunch with Justin Sun, the CEO of cryptocurrency platform TRON.
I will tell you the 3 best advices Warren Buffett has for Bitcoin.
01:55 #1 It has no underlaying value.
Buffett believes that Bitcoin has no underlying value. Buffett invests in companies that are undervalued, produce stable and recurring cash flow and have the ability to increase in book value.
To Buffett, Bitcoin doesn’t produce earnings or dividends. Rather, the value of Bitcoin is simply what one person is willing to pay for it.
02:22 #2 When you invest, be sure to understand what you’re doing with your money.
Too many investors chase investments based on headlines and stock tips from friends.
They don’t do their research or conduct due diligence before investing.
In contrast, Warren Buffett has a set of investment principles that he follows. He prefers to invest in stable consumer goods companies like Coca-Cola and financial services companies like American Express. If a potential investment falls outside his area of expertise, he rarely buys it.
02:54 Bitcoin is a highly speculative investment.
Warren Buffett invests in companies that have a wide economic moat.
While all investing involves some degree of speculation, Buffett’s background is in insurance and risk mitigation. His game is “buy and hold”—forever. He invests in companies that grow over time, steadily and consistently.