If You Invested $1,000 In Bitcoin When Warren Buffett Called It 'Rat Poison Squared,' Here's How Much You'd Have Now
Portfolio Pulse from Chris Katje
Warren Buffett, known for his value investing strategy, has been a vocal critic of Bitcoin, referring to it as 'rat poison squared' in 2018. Despite his skepticism, Bitcoin has significantly outperformed Berkshire Hathaway and the S&P 500 since then. An investment of $1,000 in Bitcoin on the day of Buffett's comment would now be worth $4,180.80, a 318.1% return, compared to Berkshire's 84.3% and the S&P 500's 71.1% over the same period. Buffett's company, Berkshire Hathaway, indirectly has exposure to Bitcoin through its shares in Nu Holdings, a crypto-friendly Latin American digital bank.
December 04, 2023 | 4:10 pm
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NEUTRAL IMPACT
Warren Buffett's Berkshire Hathaway has seen a 84.3% increase in its Class A shares since his 2018 Bitcoin criticism, but this is significantly less than Bitcoin's 318.1% return in the same period.
While the article highlights Berkshire Hathaway's underperformance compared to Bitcoin, it does not suggest any immediate negative impact on Berkshire's stock due to this historical comparison.
CONFIDENCE 90
IMPORTANCE 50
RELEVANCE 70
NEUTRAL IMPACT
Warren Buffett's Berkshire Hathaway's Class B shares have increased by 84.3% since his negative comments on Bitcoin in 2018, underperforming compared to Bitcoin's gains.
The article does not indicate any direct short-term impact on Berkshire Hathaway's Class B shares due to the historical performance comparison with Bitcoin.
CONFIDENCE 90
IMPORTANCE 50
RELEVANCE 70
NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust (SPY) has seen a 71.1% increase since Buffett's 2018 Bitcoin criticism, less than Bitcoin's 318.1% return but still a solid performance.
The article compares the performance of SPY to Bitcoin's returns since Buffett's comment, but does not suggest any immediate impact on SPY's price due to this comparison.
CONFIDENCE 90
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
Nu Holdings, a crypto-friendly bank in which Berkshire Hathaway has invested, aligns with the growing cryptocurrency trend, despite Buffett's personal stance against Bitcoin.
Nu Holdings' crypto-friendly approach and Berkshire Hathaway's investment in it could be seen positively by investors, despite Buffett's negative view on Bitcoin.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60