If Warren Buffett had put just 1% of Berkshire Hathaway’s money into Bitcoin, he could have made over 25% more profit.
On June 3, Berkshire Hathaway’s stock, BRK.A, took a big hit due to a glitch on the New York Stock Exchange (NYSE). The glitch made it look like Berkshire shares had dropped almost 100%, causing the NYSE to stop trading in several popular stocks to fix the problem.
At the end of the day, the NYSE said they would cancel the mistaken trades from the glitch. But this whole situation showed how badly Berkshire Hathaway’s stock has done compared to Bitcoin.
Berkshire Hathaway’s stock has dropped almost 99% compared to Bitcoin
Since 2015, Berkshire Hathaway’s stock has fallen almost 100% compared to Bitcoin—from about 1,000 BTC to 9.15 BTC.
It’s interesting to note that Bitcoin has done much better against BRK.A and its main stock holdings compared to what Warren Buffett has said about Bitcoin, calling it “rat poison squared.”
According to the Nakamoto Portfolio simulator, even just adding 1% Bitcoin to Berkshire Hathaway’s current holdings, which include Apple, Bank of America, and American Express, could have increased profits from 214% to 240% over five years.
On the other hand, if Warren Buffett had put 5-10% of the portfolio into Bitcoin, he could have seen returns of 328-410% in the same period.
Bitcoin worth more than Berkshire Hathaway and Meta
Despite Buffett’s negative stance on Bitcoin, it has become one of the most valuable assets globally.
As of June 4, Bitcoin’s market capitalization was about $1.36 trillion, making it the ninth-largest asset by value in the world. Bitcoin is even ahead of Meta Platforms and Berkshire Hathaway, whose market caps are $1.20 trillion and $899.36 billion, respectively.
Bitcoin’s value is expected to rise in the coming months and years as more people see it as a safe alternative to gold, which currently has a market cap of $15.8 trillion.
Summary Review: Warren Buffett’s Berkshire Hathaway has underperformed significantly against Bitcoin since 2015. Despite Buffett’s skepticism towards Bitcoin, the cryptocurrency has emerged as a strong performer, with its market capitalization surpassing that of several well-established companies. The results from the Nakamoto Portfolio simulator suggest that even a small allocation of Bitcoin to Berkshire Hathaway’s portfolio could have significantly boosted its returns. As the global financial landscape continues to evolve, it’s clear that Bitcoin is here to stay, and investors would be wise to take a closer look at its potential as a safe-haven asset and store of value.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
