The Great Crypto Scam

[semperfrosty]

Well, he lost less money then the crypto hodlers last year. That's for sure.

But surely someone so assured and vocal would take a position?

No gain in wishing ill on someone else's investments and not having the other side.

By your reasoning,the goal is either to never have a drawdown in your investment or never make a dime.

Doesn't compute for me,but I'm sure I'm missing something.

 

[The_Krakenite]

Doesn't compute for me,but I'm sure I'm missing something.

Yes, you most certainly missed something. About 80 years of Buffett & Munger investing wisdom, and also Ben Graham prior... let's just call it 100 even.

 

[semperfrosty]

Did you make generational wealth?

Let me guess... NO, just like 99% of all crypto diehards.
We have one example on ET that we could follow in realtime and full transparancy. He lost in one year 75% of his money. So he surely did not catch the generational wealth. He was closer to giving it away.

I'm not picking on you Virt! haha but:

If you believe in your investment idea and have a rough timeframe in mind then the highs we saw last year didn't even make us excited*.It was a nice healthy spike and then back to normal.

What we did enjoy,was the buying opportunity that we saw at last years levels based on our rough forecast.

I assume you're referring to Baron,who documented his investment? I'm not sure when he first started to buy,but even if he did buy at the "top", if he believes in his long term forecast then everything after that is cheap.

*Full disclosure.I got excited.hahaha

 

[semperfrosty]

Yes, you most certainly missed something. About 80 years of Buffett & Munger investing wisdom, and also Ben Graham prior... let's just call it 100 even.

You're right.I could have worded that better.

I'm not up to date on their shorting practices,however,I will bet that 'ol Buff,Mung and Gray, having decided to pass on an investment,simply started researching their next potential investment.I cant see them breaking out their best paper and caligraphy pens to berate others for investing where they hadnt.haha.

 

[The_Krakenite]

I haven't re-read all the old posts in this thread, so I may have mis-understood, but :

By your reasoning,the goal is either to never have a drawdown in your investment or never make a dime.

I'm assuming there, you were referring to what is known as value-investing. Where one is particularly only interested in taking LONG sided ownership of securities when they become undervalued (often during drawdowns).

As for their shorting practices, they never short on margin, but they do short PUTs and CALLs. One prefers on individual stocks, and the other prefers LEAPs on indexes.

That said, Buffett has stated that he would like to purchase 5-year LEAP PUTs on Bitcoin, but that he couldn't find anyone willing to give him that kind of size and duration.

He believes he knows BTC very well, however, he doesn't seem to understand Ethereum. Well... you can't expect a boomer going on to his 100s soon, to really understand coding and DeFi, can you? While it's possible he may understand part of the gist of smart-contracts, he has never so much as mentioned Ethereum that I recall or anything else in regard to the world's EVM. This leads me back to the same conclusion, he doesn't understand Ethereum.

Some investors manage to do ok when they have the financial statements of public companies in front of them and a staff to help them do intverviews with the CEO and other benefits. But put them out of their environment from the last 80 years and nothing makes sense to them anymore.

 

[semperfrosty]

I haven't re-read all the old posts in this thread, so I may have mis-understood, but :



I'm assuming there, you were referring to what is known as value-investing. Where one is particularly only interested in taking LONG sided ownership of securities when they become undervalued (often during drawdowns).

As for their shorting practices, they never short on margin, but they do short PUTs and CALLs. One prefers on individual stocks, and the other prefers LEAPs on indexes.

That said, Buffett has stated that he would like to purchase 5-year LEAP PUTs on Bitcoin, but that he couldn't find anyone willing to give him that kind of size and duration.

He believes he knows BTC very well, however, he doesn't seem to understand Ethereum. Well... you can't expect a boomer going on to his 100s soon, to really understand coding and DeFi, can you? While it's possible he may understand part of the gist of smart-contracts, he has never so much as mentioned Ethereum that I recall or anything else in regard to the world's EVM. This leads me back to the same conclusion, he doesn't understand Ethereum.

Some investors manage to do ok when they have the financial statements of public companies in front of them and a staff to help them do intverviews with the CEO and other benefits. But put them out of their environment from the last 80 years and nothing makes sense to them anymore.

Interesting-thanks.

I remember him being very critical of crypto at one stage,which spooked me(who wants to be on the opposite side to Buffet! haha).I learned shortly after that he was heavily invested nonetheless.

I'm assuming that could just be having a generic allocation to a sector?

 

[The_Krakenite]

I haven't checked to see if Berkshire has ownership of Coinbase, etc. (yet). But... Buffett & Munger no longer run the whole show. So I would not be surprised if some DeFi securities are already being purchased... actually, in a manner of speaking, JP Morgan, etc, already have made their own in-house blockchains and are developing other projects to run on DeFi, so no matter how you look at it, we are all becoming owners of DeFi regardless in one way or another.

Buffett used to always say not to 'bet against America', but his partner is already saying US dollar is going to zero, and has been pushing very heavy bets into China and re-locating a lot of capital over there. So, even an old dog can change.... Dalio and other billionaires have been moving a lot of their capital into China for quite some time now, and the recent events in 2022 are most likely only going to expedite this process.

 

[deaddog]

Interesting-thanks.

I remember him being very critical of crypto at one stage,which spooked me(who wants to be on the opposite side to Buffet! haha).I learned shortly after that he was heavily invested nonetheless.

I'm assuming that could just be having a generic allocation to a sector?

How is buffet heavily invested in crypto? I recall Berkshire investing in a bank that dealt in crypto but heavily invested would be a percentage of their assets. You can say that BRK is heavily invested in AAPL or BAC but not crypto. Warren said he wouldn't give you 25 cents for all the bitcoin in exitance.

 

[semperfrosty]

How is buffet heavily invested in crypto? I recall Berkshire investing in a bank that dealt in crypto but heavily invested would be a percentage of their assets. You can say that BRK is heavily invested in AAPL or BAC but not crypto. Warren said he wouldn't give you 25 cents for all the bitcoin in exitance.

That's sort of the quote I read.He basically said it had no value and made an analogy comparing its value to that of a parcel of land etc.

However I thought that I read shortly after that that he had significant holdings despite this.

Apologies if I'm incorrect on that.I'll try to find what I read.

 

[semperfrosty]

That's sort of the quote I read.He basically said it had no value and made an analogy comparing its value to that of a parcel of land etc.

However I thought that I read shortly after that that he had significant holdings despite this.

Apologies if I'm incorrect on that.I'll try to find what I read.

D Dog-What I must have read is the BRK investment in Nubank.A billion dollars worth of stock in a digital bank that focuses on crypto.