Perhaps the most famous value investor of all time, Warren Buffett is staunchly opposed to Bitcoin and other cryptocurrencies, saying, “You can't value Bitcoin because it's not a value-producing asset.” Buffett and his holding company Berkshire Hathaway Inc. With 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 some cryptocurrency, you don't really have anything that produced anything. You're just hoping the next guy 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 look to Buffett and his companies for investment advice and recommendations.
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However, Buffett's strong anti-crypto stance may change after reviewing the company's performance in 2023. Berkshire Hathaway's best-performing investment in 2023 was Brazilian fintech company Nu Holdings Ltd. The company owns Nubank, a neobank that offers credit cards and… Banking such as in addition to 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 received support from Buffett and Berkshire during its Series G financing when Berkshire invested $500 million in the company. Buffett later increased his stake by another $500 million for a total of $1 billion invested in early 2022.
The investment has yielded very good results, as Brazil has had a very open and accepting stance on cryptocurrencies. In 2023, Nu Holdings' price rose 93%. These huge gains make Nu Holdings the most profitable investment in Berkshire Hathaway's portfolio for 2023. This investment is especially surprising given the strong performance of stocks in other sectors, such as technology.
Buffett did not sell his investment in Nu Holdings, which means he is bullish on the stock for the coming months or years.
Given Buffett's reluctance to invest in cryptocurrencies directly, this may come as a surprise to the legendary investor. As the company looks to 2023, the strong performance of its cryptocurrency investments may prompt it to consider other cryptocurrency stocks or even cryptocurrencies themselves.
While cryptocurrencies and digital tokens do not adhere to Buffett's main investment theses, it is impossible to argue with the gains they can provide investors. For example, the value of Bitcoin rose more than 150% in 2023, outperforming every investment in Buffett's portfolio.
As cryptocurrencies become more mainstream and part of mainstream investing, it will be interesting to see if Buffett and Berkshire give in and boost their investments in cryptocurrency stocks or even major tokens like Bitcoin.
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This article: Is Warren Buffett preparing for Bitcoin? Berkshire Hathaway Makes Big Profits From Cryptocurrency Investing originally appeared on Benzinga.com
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