Warren Buffett, perhaps the most famous value investor of all time, strongly opposes Bitcoin and other cryptocurrencies, stating, “Bitcoin is not a value-producing asset and cannot be valued.” I am. Mr. Buffett and his holding company, Berkshire Hathaway, are well known for investing in stable and profitable companies.
Buffett believes in investments that create value rather than relying on investor sentiment. “When you buy something like Bitcoin or a cryptocurrency, you're not actually creating anything. You're just hoping the next person will pay you more.”
This strategy has been profitable for decades, allowing Berkshire Hathaway to become one of the largest and most profitable companies in the world. Investors around the world turn to Mr. Buffett and his company for investment advice and recommendations.
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However, Buffett's strong anti-crypto stance may change after reviewing the company's performance in 2023. The best-performing investment in Berkshire Hathaway in 2023 was Brazilian fintech company Nu Holdings. The company owns Nubank, a neobank that offers credit cards and banking services. Cryptocurrency trading is also possible for users. In addition to 15 types of tokens, it also offers its own utility token called Nucoin.
The company, which went public in December 2021, received backing from Buffett and Berkshire during its Series G funding, in which Berkshire invested $500 million in the company. Buffett has since increased his investment by another $500 million, bringing the total to $1 billion in early 2022.
Since Brazil has had a very open and receptive attitude towards cryptocurrencies, this investment has yielded very high returns. In 2023, Nu Holdings' price increased by his 93%. These huge gains made New Holdings the most profitable investment in Berkshire Hathaway's portfolio in 2023. This investment is especially surprising given the strong performance of stocks in other sectors, such as technology.
Buffett has not sold his investment in New Holdings, which could signal that he remains bullish on the stock in the coming months and years.
Given Buffett's reluctance to invest directly in cryptocurrencies, this could be an eye-opener for the legendary investor. Looking back to 2023, the company may turn its attention to other virtual currency stocks and virtual currencies themselves, given the strong performance of virtual currency-related investments.
Although cryptocurrencies and digital tokens do not conform to Buffett's core investment thesis, it is impossible to argue with the benefits they can offer investors. For example, Bitcoin rose more than 150% in 2023, outperforming every investment in Buffett's portfolio.
As cryptocurrencies become more popular and part of mainstream investing, it will be interesting to see if Buffett and Berkshire relent and invest more in crypto stocks and even major tokens like Bitcoin. Dew.
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The article Is Warren Buffett on board with Bitcoin? Berkshire Hathaway makes huge profits on crypto investments first appeared on Benzinga.com
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