Warren Buffett Investment Company Many of Bitcoin Cs
NewYork – The world’s biggest investor, Warren Buffett, is known as one of the people who strongly opposes Bitcoin and cryptocurrencies. He even said that Bitcoin is not an asset that generates value.
Buffett himself and his parent company, Berkshire Hathaway Inc. have been renowned for their investments in stable and profitable companies. Buffett believes in investments that create value, rather than relying on investor sentiment.
“If you buy something like Bitcoin or cryptocurrency, you don’t really own something that has produced anything. You just hope the next person pays more,” he said, citing Yahoo Finance, Monday (19/2/2024).
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 look to Buffett and his companies for investment advice and recommendations.
However, Buffett’s strong anti-crypto stance may change after reviewing the company’s performance in 2023. The best-performing investment in 2023 for Berkshire Hathaway is Brazilian fintech company Nu Holdings Ltd.
The company owns Nubank, a neobank that offers credit cards and banking as well as crypto trading for users. The company offers 15 different tokens, as well as its own utility token called Nucoin.
The company, which went public in December 2021, has received support from Buffett and Berkshire during series G funding when Berkshire invested US$ 500 million in the company. Buffett then increased his holdings by another US$ 500 million, bringing the total to US$ 1 billion invested in early 2022.
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The investment has paid off very well, as Brazil has a very open and accepting attitude towards crypto. In 2023, Nu Holdings’ price appreciates by 93%. These huge gains make Nu Holdings the most profitable investment in Berkshire Hathaway’s portfolio for 2023.
In fact, this investment is surprising considering the strong performance of stocks in other sectors, such as technology.
Buffett has not yet sold his investment in Nu Holdings, potentially implying he is bullish on the stock in the coming months or years.
Considering Buffett’s hesitation to invest in crypto directly, this could be an eye-opener for the legendary investor. As the company looks back to 2023, the strong performance of its crypto-related investments may cause it to look at other crypto stocks or even cryptocurrencies themselves.
Although cryptocurrencies and digital tokens do not follow Buffett’s main investment thesis, it cannot be denied that they create the benefits they can provide to investors. For example, Bitcoin appreciated more than 150% in 2023, outperforming all investments in Buffett’s portfolio.
As crypto becomes more widespread and becomes part of mainstream investing, it will be interesting to see if Buffett and Berkshire will give in and continue their investments into crypto stocks or even mainstream tokens like Bitcoin.
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