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Is Warren Buffett getting closer to Bitcoin? Berkshire Hathaway makes a lot of money from cryptocurrency investments
Perhaps the most famous value investor of all time, Warren Buffett is strongly against Bitcoin and other cryptocurrencies, stating: “You can’t value Bitcoin because it’s not a value-producing asset.” Buffett and his holding company Berkshire Hathaway Inc. are famous for their investments in stable, profitable companies.
Buffett believes in investing that creates value, rather than relying on investor sentiment. “If you buy something like Bitcoin or some cryptocurrency, you don’t really have anything that has produced anything. You just hope the next one pays 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 Buffett and his companies for investment advice and recommendations.
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However, Buffett’s strong anti-crypto stance may change after examining the company’s performance in 2023. The best-performing investment in 2023 for Berkshire Hathaway was a Brazilian fintech Nu Holdings Ltd.. The company owns Nubank, a neobank that offers credit card and banking services as well as cryptocurrency trading for users. It offers 15 different tokens, as well as its own utility token called Nucoin.
The company went public in December 2021, but had received support from Buffett and Berkshire during its Series G funding when Berkshire invested $500 million in the company. Buffett subsequently increased his stake by another $500 million for a total of $1 billion invested by early 2022.
The investment paid off very well, as Brazil had a very open and welcoming stance towards cryptocurrencies. In 2023, Nu Holdings’ price has appreciated by 93%. These huge gains have made Nu Holdings the most profitable investment in Berkshire Hathaway’s portfolio for 2023. This investment is particularly impressive given the strong performance of stocks in other sectors, such as technology.
Buffett did not sell his investment in Nu Holdings, which could imply he is bullish on the stock for months or years to come.
Considering Buffett’s hesitation to invest directly in cryptocurrencies, this could be an eye-opener for the legendary investor. As the company looks back to 2023, the strong performance of its cryptocurrency-related investments could lead it to look into other cryptocurrency stocks or even cryptocurrencies themselves.
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While cryptocurrency and digital tokens fall short of Buffett’s key investment theses, it’s impossible to argue with the gains they can offer investors. For example, Bitcoin has appreciated more than 150% in 2023, beating every investment in Buffett’s portfolio.
As cryptocurrencies become more pervasive and part of mainstream investing, it will be interesting to see if Buffett and Berkshire give in and push their investments into crypto stocks or even major tokens like Bitcoin.
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This article Is Warren Buffett getting closer to Bitcoin? Berkshire Hathaway makes a lot of money from cryptocurrency investments originally appeared on Benzinga.com
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