Warren Buffett Loses 28B in One Week, Should&039ve Kept His Bitcoin
If you thought you had a bad week, take comfort in the fact that billionaire investor Warren Buffett’s week was probably a lot worse. Berkshire Hathaway’s CEO lost more than $28.5 billion in the past seven days. maybe he now he wishes he had hid his bitcoin from justin sun.
a wild week for everyone, worse for warren buffett
virtually no one, not even peter schiff, can claim to have dodged the global stock market crash. he was jubilant because gold recently hit a seven-year high on February 21, and he didn’t miss an opportunity to lash out against bitcoin.
Reading: Bitcoin in one week. buffett still
#gold is up another $27 so far to above $1,640, a new 7-year high in the us. uu. dollar, and historical record in other currencies. #bitcoin is currently trading at $9,700. which do you think will reach $3000 first?
— peter schiff (@peterschiff) February 21, 2020
but that was quickly overcome. Not even the world’s most famous safe haven asset has escaped the coronavirus. its price fell again on February 29, 2.60% less than at the end of last week.
It’s been brutal all across the board with the three major U.S. indexes logging their worst single-week performance since Oct 2008. The Dow Jones, Nasdaq Composite, and S&P 500 all tumbled in excess of 10% amid rising fears of the coronavirus and a global pandemic.
as the federal reserve prepares to cut interest rates, printing more money in another large-scale dilution of us. uu. value of the dollar, the market has gone up a little bit.
reduce interest rates and print money.
These are the tools of central banks.
and they’re going to abuse them at the exact moment we’re heading into the bitcoin halving.
See also: Bitcoin Tech Summit | Business Resource Center | Utah Valley University
even hollywood couldn’t write this script 🤯https://t.co/lzqqifjdnu
– pomp 🌪 (@apompliano) February 29, 2020
however, while this may increase investor confidence in the short term, bitcoiners understand the consequences of printing money at will. this is just one example: $100 in 1913 would only be worth about $3.87 today thanks to rising inflation.
facing the dwindling purchasing power of the us. uu. dollar and a loss of $28.5 billion from his top 10 investments, buffett stands by his claims that cryptocurrencies are worthless.
warren buffett and his 10 best investments
buffet’s conglomerate, berkshire hathaway, has acquired more than 50 companies from a host of different sectors. all serve to contribute to the superior and inferior results of the investment company. this portfolio recently passed the $250 billion mark in market value.
However, by the end of trading on Friday, February 28, staggering losses on Berkshire Hathaway’s investment portfolio had pushed it back to a value of $212.8 billion.
This decline, as noted by nasdaq news, was particularly pronounced for buffett’s top 10 investments (of which seven shed more than $1 billion in value in seven days).
Together, they reduced Berkshire’s investment portfolio by about $28.5 billion in just one week. Among the biggest losers were Apple, Bank of America, Kraft Heinz and Delta Airlines.
a ‘climate of fear’ is investors’ ‘best friend’
In his early 90s and arguably the most successful investor of our generation, this won’t stop the old dog in his tracks. Buffett is battle-hardened, having presided over 38 stock market corrections in his time. in fact, he has always famously said:
The best opportunity to deploy capital is when things go wrong.
His infamous buy-and-hold thesis has served him well over the years. and it’s another reason why it’s a shame this old school investor’s mind has settled on bitcoin.
See also: Recenzja Bitcoin Future 2022 | Czy Warto Korzystać? | CoinJournal
As Buffett’s track record in the face of a still falling stock market shows, having a long-term mindset will almost certainly pay off. this is something that all bitcoin hodlers can understand.
The number one cryptocurrency, meanwhile, appears to be recovering. it is currently recovering and it seems possible to spend $9k once again today.
If predictions from partners like fundstrat and max keizer are correct, buffett’s buy-and-hold cast-iron stomach would serve you well in crypto.
as binance CEO changpeng zhao (cz) points out, bitcoin was created after the last financial crisis. since then, it has increased by 9,000,000%.
How do you think it will fare in the next financial crisis?
#bitcoin was created after the last financial crisis. It’s up 9,000,000% in the last 10 years when fiat and stocks were strong. How do you think it will fare in the next financial crisis?
— cz binance 🔶🔶🔶 (@cz_binance) March 1, 2020
with seismic losses on his investments and staggering roi like that…could buffett be at least wondering if he should have kept his bitcoin after all?
do you think warren buffett regrets giving away his bitcoin? add your thoughts below!
images via fortune.com, twitter @cz_binance @apompliano @peterschiff, bullionbypost charts
See also: 3Blue1Brown – But how does bitcoin actually work?