Crypto-currencies buyers are gambling, says Warren Buffett. “You aren’t investing when you do that. You’re speculating. There’s nothing wrong with it. If you wanna gamble somebody else will come along and pay more money tomorrow, that’s one kind of game. That is not investing,” the renowned investor told Yahoo Finance.
“There’s two kinds of items that people buy and think they’re investing,” he says. “One really is investing and the other isn’t.” Bitcoin, says Buffet, is part of the “isn’t” category.
“If you buy something like a farm, an apartment, house or an interest in a business … You can do that on a private basis … And it’s a perfectly satisfactory investment. You look at the investment itself to deliver the return to you. Now, if you buy something like Bitcoin or some crypto-currency, you don’t really have anything that has produced anything. You’re just hoping the next guy pays more.”
Earlier in April, media outlets around the world reported that companies associated with investment titans George Soros and the Rockefeller family were moving into crypto-currency investing and this was one of the reasons analysts cited for Bitcoin’s 30+% rally in April, that saw its price move from less than $7,000 to more than $9,500 in mid-April, although the climb has now flattened and Bitcoin now trades at about $9,200.
The so called “Oracle of Omaha,” however, who with a net worth of $87.5 billion is considered one of the most successful investors in the world, has been unwaveringly critical in his numerous proclamations on Bitcoin and other crypto-currencies.
In 2014 he described them as a “mirage,” while in January 2018, he told CNBC, “in terms of crypto-currencies, generally, I can say almost with certainty that they will come to a bad ending … we don’t own any, we’re not short any, we’ll never have a position in them … I get into enough trouble with the things I think I know something about. Why in the world should I take a long or short position in something I don’t know about?”
Buffett, who will turn 88 this year, is chairman and CEO of Berkshire Hathaway and is considered one of the most successful investors in the world. He has a net worth of US$87.5 billion and is the third wealthiest person in the world.
He was talking to Yahoo Finance ahead of Berkshire Hathaway’s annual shareholder meeting. Berkshire Hathaway is the third largest public company in the world and is renowned for its shrewd long-term investments in publicly traded companies, and these include American Express, Apple, Coca-Cola and Wells Fargo.
That portfolio list, for certain, does not include any crypto-currency start ups.
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