Buffett: "I Would Buy A Five-Year Put On Every Cryptocurrency"

Discussion in 'CryptoCurrency' started by Sephrata, Jan 10, 2018.

  1. Sephrata

    Sephrata Jr. VIP Jr. VIP

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  2. davids355

    davids355 Moderator Staff Member Moderator Jr. VIP

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    Haha, put your money where your mouth is then warren.
     
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  3. Sephrata

    Sephrata Jr. VIP Jr. VIP

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    Far too risk averse - he's always the tortoise in the hare vs tortoise race.

    He still lives by the same principal that helped him make his fortune, only invest in something you understand. When he's drifted from that (credit derivatives being one), he's got burnt.

    It will be interesting to see how the Wall Street trading desks are getting on with cryptos. No doubt there are some crazy investments floating around on the buy and sell side.
     
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  4. soa0611

    soa0611 Supreme Member

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    blockchain vs. 90 years old guy
     
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  5. Twofaced

    Twofaced Registered Member

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    Why is he fudding? :mad:
     
  6. waterworks

    waterworks Senior Member

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    We should change the term from FUDing to Buffeting.
     
  7. TheAlmightyDada

    TheAlmightyDada Jr. VIP Jr. VIP

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    Say what you will, but the man understands money.

    You could say that he is risk averse, but I think he is just being intellectually consistent - He has always said he never invests in something he doesn't know so he's not investing.

    As far as putting his money where his mouth is, I may be wrong, but I don't believe there is an option to place such a long term put option. There is only the option to go short but that would leave him with a potentially unlimited loss.

    TAD
     
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  8. davids355

    davids355 Moderator Staff Member Moderator Jr. VIP

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    I don’t know much about him, I know he’s someone to be respected.

    But what you said is the same point I was making , to bet something is going to go down is to stake an unlimited amount so I think he is a bit flippant to say that and probably only says so because it’s not possible.

    If it was possible would he do it? I doubt it.
     
  9. TheAlmightyDada

    TheAlmightyDada Jr. VIP Jr. VIP

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    I think you're right, and I think that he knows he wouldn't. If not just for the fact his shareholders would lose faith in him.

    Personally as a shareholder in Berkshire Hathaway I would worry if he did something like that and it wouldn't be due to whether or not I thought Crypto's would fail. It would be because it goes against what his fund has always been about.
     
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  10. MisterF

    MisterF Moderator Staff Member Moderator Jr. VIP

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    Thing is Buffet is a man that can move markets just on his comments or buying into funds / shares.

    Berkshire Hathaway are a solid investment house and you've got a good investment there @TheAlmightyDada
     
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  11. Asif WILSON Khan

    Asif WILSON Khan OG Blue Tick Exec VIP Jr. VIP

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    Actually he makes a lot of sense. He admits he doesn't understand Cryptos so he won't put any money into them unlike 80% of the people who have invested into them and still know nothing.
    Been looking at a lot of coins that have been touted on BHW and the majority are shitcoins with no long term prospects IMO
    Yes, make money while you can but don't get carried away, cryptos are still in their infancy.
     
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  12. PinguSpy

    PinguSpy Jr. VIP Jr. VIP

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    He is a classic investor.

    This crypto thing is still new, too complicated, & geky.

    Currency.
    Different tech n advantage each coin.
    ICO.
    Dev insider n update.
    Roadmap.
    PumpNDump.
    Exchange.
    China, Korea, etc
    Etc
    Etc
    Etc

    Different level of investment.

    Obviously Warren Buffet 2.0 gonna be made from this. (If this crypto bubble aint burst ‘yet’).
     
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  13. Sherb

    Sherb Jr. Executive VIP Jr. VIP

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    Greedy pump and dump profit mongers looking to squeeze every penny out of their coin before they are magically regulated and their tactics become highly illegal.

    Versus.

    An investor and one of the richest men on earth with over 50 years of experience staying ahead of the game.

    Wow, tough choice.
     
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  14. Twofaced

    Twofaced Registered Member

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    Why would you listen to him when he said he know literally nothing about crypto? He doesn´t know that some cryptos have big companies behind them etc.
     
  15. darulez

    darulez Elite Member

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    Well. He adviced to put into sp500 ..
     
  16. deal with it

    deal with it Power Member

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    what if i had said the same thing ?
     
  17. nocturnae

    nocturnae Junior Member

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    Carl Icahn has an ever bigger effect for that matter. :)

    Backing it back up to Warren Buffet, say what you will but since he bought Berkshire and turned it into an investment vehicle he did manage to get 20.8% average return over all the years (his gains were higher when he was still managing the Buffet family fund though, but I digress). Although in most recent years it will have become much harder for him to realize this, since he has to much money to move. However, having that much money also gets you 'insider' deals so you're able to buy stock lower than any regular investor might be able to through the stock exchange.

    Warren, and Charlie Munger (who might argually be the smarter of the two, but that's not related to any of this :) ), have a very strict set of 'rules' by which they do their business. Warren indeed sticks to his rules to "invest in what he knows", because he does deep fundamental analysis of companies. Even if they are out of public favor now, if they have a good set of fundementals (healthy balance sheet, low amount of debts, market dominance, knowledgeable C-level execs,...) he'll invest in them. Even if that means that his investment won't pay of within the first 2-5 years. That's the power of value investing. I've been doing it, and with succes :). Warren is a master at business, minimizing risk and maximizing upwards potential.

    However, crypto is a whole other game. It's much more related to forex trading than stock trading and the volatility is higher than what Warren would feel comfortable with. For the most part it's also a very short/medium term game. It's hard to do fundamental analysis (nobody knows where all of this is going really). Just as a side note I wanted to throw in a comparison between the net worth difference of forex trader George Soros, worth about 8 Billion and Warren Buffert, worth 88 Billion. In my observation there are more "ultra" wealthy value/stock investors than there are forex traders.
    My tip: make sure to capitalize on your gains in crypto, and move them to more long term (less volatile) investments. Don't put/leave all your money in a single stream of revenue.

    Apart from that Warren (most likely) has no interest in diving into the crypto market now. He's old as f* and has already acquired more than enough money. He isn't interested in learning the crypto world anymore at this age in time or this stage of life, and I don't think he should either.

    For us, "youngsters", crypto and the blockchain technology will undoubtedly shape the future world, much like the internet did decades ago. I behold Warren (and even more so Charlie Munger) as a mentor of mine, but the biggest thing he taught me is to do my proper research and adhere to strict principles when it comes to investing. Your emotions are your worst enemy.
     
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  18. ttmschine

    ttmschine Power Member

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    Warren Buffet is such a dumb ass, I mean who'd take any kind of investment advice from an idiot like him?

    Pfft, not this cryptard, that's for certain.

    HODL!
     
  19. SensualTyrannosaurus

    SensualTyrannosaurus Jr. VIP Jr. VIP

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    That should be the sig of EVERYONE who HYPES coins in this subforum.
     
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  20. ∂αякѕтαя

    ∂αякѕтαя Regular Member

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    Yep i get myself checked by veterinarian . This guy got 50 years of experience in treating animals. You think im gonna get treated by doctor who got his license last year?