Warren Buffett, the billionaire and one of the most famous financial gurus of all time, and a loyal detractor of Bitcoin, again failed to mention Bitcoin in his annual letter to his investors. A status quo lover? Is BTC very new to it?
The presentation of his long-awaited annual letter from his firm “Berkshire Hathaway”Took place on Saturday. But, this was carried out for the first time online, thanks to the quarantine of the Coronavirus that has affected everyone.
It was here that the famous 89-year-old financial guru revealed that he would sell all his airline shares, as he does not expect them to recover in the short to medium term. In addition, he stated that he had not found any acquisition worth mentioning during the Coronavirus crisis.
Bitcoin does not appear in Warren Buffett’s annual letter
It was a rather unusual meeting, since it is the first one that takes place online. But this was the only advance to the future that Warren Buffett had, since he still does not have Bitcoin as an investment option.
Despite the fact that Bitcoin (BTC) is the best performing asset, along with gold, in this global pandemic. And, not to mention that it is without a doubt the best investment in the history of humanity.
What important points were raised at the meeting?
The work of people in the Coronavirus
One of the questions was from the American actor Bill Murray:
“This pandemic will generate a new class of war veterans: Health personnel, people from the food supply, delivery services. We owe so much to so few. How could this great country take our turn and take care of everyone? ”
Surely this reflection has been made by many of us. Various jobs that were not previously seen by society are now one of the most important. Well, without them, we would all be more exposed to the Coronavirus. How many lives have these jobs indirectly saved?
But, Buffett responded strongly:
“Most of those people are not wealthy. They are poor, and they suffer, a suffering that many of us could not imagine. At the same time, they are doing all of these jobs 24 hours a day and we don’t even know their names. If the world is going to gain access to something, that is to help these people… But, unfortunately they are not living like kings, they have 2 jobs, and more than 40 hours of work a week, nobody should be left behind ”.
On the future of the Berkshire Hathaway firm
In one of the meeting questions Warren Buffett was asked if he would consider breaking Berkshire Hathaway, to which the guru replied:
“If I were to sell the various Berkshire subsidiaries, I would incur a very large corporate tax amount before anything was distributed to shareholders … It won’t happen, shareholders would be the worst hit, no matter how good the plan is shopping. My plan is already taken. And not only does it ensure that the money earned in Berkshire will end up going to various philanthropies over time, but it will also keep the wolves away. ”.
With this, Warren Buffett made it clear that he will leave the company once he dies, just like 96-year-old Charlie Munger. Therefore, it is likely that Bitcoin will not see light soon within the firm.
Warren Buffett hasn’t seen anything attractive during the pandemic, not even Bitcoin?
Warren is famous for always expressing that moments of crisis are the best time to buy stocks and earn money. So whenever something important happens in the global context, everyone turns to see Buffett’s investment stocks.
But, as he expressed, he is prepared to do what his philosophy says. But, he hasn’t seen anything important so far. The question we ask ourselves is, hasn’t Warren Buffett turned to see Bitcoin?
“We are not doing anything great, obviously. We are ready to do something very big. I mean, you could come to me on Monday morning with something involving $ 30, $ 40 billion, or $ 50 billion. And if we really like what we are seeing, we would. “
Warren and his mistake on the airlines
Warren and his firm, Berkshire Hathaway, were well known for owning large shares in the airlines. Especially at United, American, Southwest and Delta Airlines.
But, Buffett revealed that Berkshire dropped all of its stake in the airlines. Well, they do not expect these to recover in a long time from the impact of the Coronavirus.
“The world has changed for airlines. And I don’t know how it has changed and I hope that it will be corrected reasonably quickly… I think there are certain industries and, unfortunately, I think the airline industry, among others, is really affected by a forced closure by events that are beyond our control. ”
Buffett spoke candidly to shareholders and accepted his mistake. “I was wrong,” referring to not selling the shares when everyone else did.
“I don’t know if in 3 or 4 years people will fly as many miles of passengers as last year … There will be too many planes parked.”
Thus raising a reasonable doubt whether Buffett is also wrong about Bitcoin and cryptocurrencies.
Tips for Everyday Investors
For him, the best thing they can do is buy “S&P 500 index fund”. For Warren Buffett, he believes that average investors should think Long instead of following the advice of “trading experts.”
“In my opinion, for most people, it is best to own the S&P 500 index fund. There are large amounts of money that people pay for advice they really don’t need. If you bet on the United States and hold that position for decades, it would be much better than buying Treasury securities, or much better than following people who tell you what to invest in. ”.
Another thing Warren Buffett advised, is that you don’t use borrowed money for this type of long-term investment. This, because the uncertainty is great, because it is not known when the Coronavirus crisis will pass.
“When something like the current pandemic occurs, it is difficult to study all the variables that impact. That is why you never want to use borrowed money, at least in my opinion, for long investments. ”.
The American dream is still intact
The American stock market has produced $ 100 for every $ 1 since Buffett finished college in the 1950s.
“All I had to do was believe in the United States. I simply had to believe that the American miracle was intact, and I still believe it is. So I will always believe in the United States. “.
The economy faces an “extraordinary” range of results, but nothing can stop the United States, according to Warren Buffett.
Berkshire reports a net loss of $ 50 billion
Berkshire Hathaway reported a net loss of nearly $ 50 billion during the first quarter of the previous Saturday. Since the conglomerate’s equity investments suffered a massive blow amid the coronavirus outbreak.
Despite short-term fluctuations, Warren Buffett’s long-term track record is why this meeting is such a great annual event for investors.
Why did Warren Buffett not talk about Bitcoin?
It is no secret to anyone that Warren Buffett is not a great friend of Bitcoin. Rather, he considers them an unproductive instrument, with the sole function of laundering money.
Cryptocurrencies don’t produce anything. The only thing you can do in 20 years is to look at your little “Decentralized Accounting Book” and say “I have so much amount of this X crypto”. It is not reproduced, it is not delivered, you cannot send a check by mail. Literally can’t do anythingWarren Buffett sentenced.
The legendary lunch of Justin Sun, the founder of the altcoin Tron (TRX), which he had with the famous investor Warren Buffett last January.
But apparently the charity fundraiser lunch for the neediest people in San Francisco did not change Warren Buffett’s negative views of cryptocurrency at all; especially about Bitcoin (BTC).