Warren Buffett says bitcoin is 'rat poison'
- Author: Rita Burton May 09, 2018,
May 09, 2018, 5:13
Speaking at the annual shareholder meeting of his Berkshire Hathaway Inc. conglomerate, Buffett maintained that healthcare is a "tapeworm" on American businesses, hurting their ability to compete with rivals in other countries.
"If people think they're going to make money, it just draws people in". It is precisely for this reason that Buffett announced that it would still invest in AAPL titles: "We really like the business of their company". "In the end, you make your money out of productive assets". "But when you buy a non-producing asset, there are no checkpoints".
That's why some cryptocurrency experts think that investors should ignore Buffett's and Munger's repeated bitcoin bashing. If I'm investing in Apple, I want people to think Apple is bad because they're repurchasing shares and it will go up faster. You get defensive when you look at it and it doesn't do anything, you're just waiting for someone to come along and pay you more. "You can get that and it will feed on itself for a while - and sometimes for a long while - and sometimes to extraordinary numbers".
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The gap between Apple and other US companies in terms of market cap is equally impressive, with the iPhone-maker now worth over $120 billion more than its nearest tech rivals Amazon ($773B), Microsoft ($732B) and Alphabet ($719B), which are the second, third and fourth in market cap valuations, respectively.
Buffett: "The nice thing about buying Apple is that I don't care whether anyone mentions Apple again".
Surprise! Bitcoin is getting no love from two of the world's wealthiest men.
Munger, meanwhile, said Berkshire may have been "a little too restrained" in buying Apple, saying "it's reasonably priced and strong". "Whereas I do see a business that they know everything about, and where they may or may not be able to buy at an attractive price when they repurchase their shares". "And the fact that it's clever computer science doesn't mean that it should be widely used, and that respectable people should encourage other people to speculate on it. Bitcoin reminds me of Oscar Wilde's definition of fox hunting: the pursuit of the uneatable by the unspeakable".