On May 5, 2019, Buffett's shareholder meeting was held in his hometown of Omaha! At the conference, he once again talked about digital currency, saying that it still cannot be understood.
Buffett has always been very conservative in investing in new technologies and new financial sectors. A similar situation has occurred in investments by big companies such as Microsoft, Google and Amazon. However, Buffett’s recent opinion has a 180-degree change. He has repeatedly admitted in different interviews that refusing to invest in Amazon and Google was a “wrong decision”. And its Berkshire Hathaway company has been buying Amazon stock.
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Does this major change mean that Buffett’s investment ideas are changing? He now regrets missing Google, Amazon, will he regret to miss Bitcoin like he is today?
Is Buffett really conservative?
According to CNBC, Berkshire Hathaway has been buying Amazon stocks, but Buffett is not behind the purchase. On the eve of the annual shareholder meeting in Berkshire Hathaway Omaha, Buffett told CNBC that "one in the office who bought money bought some Amazon stocks, so this will appear in the 13F file. But 'not me' (Note: According to the US Securities and Exchange Commission (SEC), organizations that manage more than $100 million in stock assets are required to submit a stock position report at the end of the quarter to the SEC within 45 days of the end of each quarter. This report is a 13F document. .)
This is the first time this multinational investment group has invested in Amazon. Although Buffett praised Amazon and its CEO and its company's business, Buffett has mysteriously postponed his shareholding since the e-commerce giant first publicly offered in 1997. Buffett joked that his character has not changed: "I have always been his fan, I have always been a fool who doesn't buy it. But I want you to know that this has not changed your character."
The "big change" of Buffett is not entirely unexpected. In 2017, on CNBC's Squawk Box show, when asked why he had not invested in Amazon stock, Buffett gave a verbal answer: "Stupid."
In an interview with CNBC last year, Buffett said that he would feel pain when he saw the Amazon annual report recently, because Bezos always put his 1997 shareholder letter in the annual report. In the letter, Bezos told investors that he has a long-term vision and promised that "the sale of books and e-commerce through the Internet as a whole will prove to be a huge market."
Buffett also said: "The fact is, I have been paying attention to Amazon from the beginning. I think Jeff Bezos is doing a miracle. I know that he will go all out to his own ideas. The problem is, I don't know this. The idea has such great potential. I screwed up."
At the Berkshire Shareholders' Meeting in May last year, Buffett admitted that the refusal to invest in Amazon and Google was a "wrong decision." This mistake is due to his adherence to the long-standing investment principles.
Just last week, Buffett said in an interview with Yahoo Finance that although he missed the opportunity to invest in Amazon and Microsoft, he did not think these were terrible mistakes.
He told Yahoo Finance editor Andy Serwer: "I missed a lot of games. Even if I knew Bill (Gates) earlier, I would miss Microsoft. These are not my games."
"I don't worry about missing something beyond my assessment. I have missed something in my circle. This is a terrible mistake. These are my biggest mistakes, you haven't seen them. But… missed Netscape Things like that are not wrong for me."
Buffett added, "But I hope you know that this is not a change in personality."
Buffett’s slow and steady investment strategy has undoubtedly earned him the title of “share god”. In recent years, his investment style seems to be relatively conservative. actually not. On February 23, Buffett issued an annual "To the Shareholders Letter". Overall, Berkshire achieved a profit of 4 billion U.S. dollars in 2018, and the book value per share increased by 0.4%, but it was significantly weaker than the 23% increase in the same period of 2017. Due to the large investment losses to technology stocks, Burke Hill-Hassaway rarely saw a net loss of $25.39 billion in the fourth quarter. Although the portfolio still outperformed the 2018 S&P 500 index, it is still not a good result for an investment guru like Buffett.
It can be seen that Buffett is not completely conservative, but he is really wrong, so now regret it.
The future will regret to miss Bitcoin
At this year's Berkshire Hathaway Annual General Meeting, Buffett slammed Bitcoin again.
Buffett said: "Digital cryptocurrency is a gambling device… There are many frauds associated with it. Bitcoin does not produce anything."
Buffett's partner, Charlie Munger, even compared the transaction of digital cryptocurrency to "dementia."
But the shareholders of Berkshire Hathaway from Omaha may just want to hear what Buffett would say about the digital cryptocurrency revolution that swept the economy.
Buffett said that bitcoin is not an investment at all. "It didn't do anything. It's there. Just like a shell, it's not an investment for me."
Regarding the issue of the first token issue (ICO), Buffett said: "I took off a button from my clothes and sold it to you for $1,000. I can see if I can raise the price to 2000 before the end of today. Dollar. But the button has only one use, and its use is very limited."
He also said, "The blockchain is very large, but it does not need bitcoin. Of course, JPMorgan Chase has launched its own cryptocurrency."
Since 2014, Buffett has been dissipating bitcoins several times a year, but his views have remained unchanged over the years.
In 2014, Buffett began to attack Bitcoin. In an interview with CNBC, he advised everyone to stay away from Bitcoin: it is basically just a phantom, a way to transfer funds, and the idea that Bitcoin has great intrinsic value. It seems to me a joke.
In November 2017, Buffett published in Forbes magazine that Bitcoin can't create value, it is a “no-floating bubble”. “It doesn’t mean anything at all. It’s outside of regulation and outside of control. No matter whether it is the US Federal Reserve or other central banks, it can't be monitored. I don't believe it at all. I think it will collapse completely sooner or later."
At the Berkshire Shareholders' Meeting in 2018, Buffett once again expressed his dislike of Bitcoin: "The final result of the cryptocurrency will be bad because they did not produce any value associated with this asset. The value depends on more people entering the market, and then the holder sells to the pick-up at a higher price than the purchase price."
At the time of the digital currency crash last year, he even referred to the digital cryptocurrency as a "powerful rat drug."
Obviously, investing in Bitcoin does not match Buffett’s value investment philosophy, which is why he looks down on Bitcoin.
In addition, in terms of Buffett’s position in the investment community today, he does not have to take his own reputation to sip for the Bitcoin platform. This is almost the consensus of the frontline.
Buffett's failure to invest in Bitcoin is understandable, but his criticism of Bitcoin is dissatisfied with proponents of 100 million digital cryptocurrencies. In the interview with CNBC, Winklevoss twin brothers had bombarded Buffett too much.
In the early days of its birth, Bitcoin became a dark-net payment currency and was used for money laundering and crime. As people's awareness of Bitcoin deepens over the years and the participation in Bitcoin increases, the value of Bitcoin is slowly emerging.
The original intention of Satoshi Satoshi's design of Bitcoin is to build a peer-to-peer trading network that is decentralized, transaction information cannot be falsified, and a constant amount of money, to solve problems such as excessive currency and inflation.
Bitcoin also has an important value that cannot be ignored. It is the blockchain, the underlying technology of Bitcoin. Because of the fiery bit of bitcoin, many companies and individuals have begun to pay attention to the blockchain, and continue to try to use blockchain technology to change existing businesses and create new value.
Just like Moto's big roots, the attitude about cryptocurrencies has been quietly changed. From the point of view of the release of JPMCoin, this traditional financial giant has already entered the cryptocurrency.
Obviously, Buffett is out of date in the perception of Bitcoin. From the perspective of missing Microsoft, Google, and Amazon, Buffett has always been a relatively conservative and pedantic old man, whether it is dealing with the Internet, high-tech companies or blockchains.
Therefore, we do not expect to change Buffett's investment philosophy, but I do not want to see his unprovoked public opinion on Bitcoin.
Society is developing and technology is improving. Perhaps one day a few years later, Buffett will regret the loss of Google and Amazon today, and will regret his "ignorance" of Bitcoin.
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