Photo: Olga Lioncat

Does Warren Buffet own Bitcoin?

Warren Buffett says he doesn't own bitcoin because 'it isn't going to do anything' — he'd rather own these 2 productive assets instead.

finance.yahoo.com - Warren Buffett says he doesn't own bitcoin because 'it isn't going to do ...

What is a Barra slang?

(Southern dialects) woman.

Last updated Oct 10, 2021

What comes after DINK?

In addition to DINKs, another group of couples is known as “DINKYs,” short for “Dual Income, No Kids — Yet.” These are people who are living...

Last updated May 1, 2019

Make Your Bookie Cry And Pull The Hair By Generating $23,187

Promotion

Warren Buffett says he doesn’t own bitcoin because ‘it isn’t going to do anything’ — he’d rather own these 2 productive assets instead Despite its recent pullback, bitcoin has soared by more than 120% over the past five years. But while the world’s largest crypto coin has clearly hit the mainstream, one prominent investor remains critical of the opportunity: Warren Buffett. At the Berkshire Hathaway annual shareholders meeting this year, Buffett said that while he doesn’t know whether bitcoin will go up or down going forward, he’s pretty sure that “it doesn't produce anything.”

And that’s why the Oracle of Omaha doesn’t own the asset.

“If you told me you own all of the bitcoin in the world and you offered it to me for $25, I wouldn’t take it because what would I do with it?” he asks. “I’d have to sell it back to you one way or another. It isn’t going to do anything.” To put that in perspective, bitcoin was trading at around $38,000 a piece when Buffett made those comments. Now, the cryptocurrency has fallen to $17,300. While criticizing bitcoin, Buffett touched on two assets that he would buy if given the opportunity.

Don't miss

You could be the landlord of Walmart, Whole Foods and Kroger (and collect fat grocery store-anchored income on a quarterly basis) Want to invest your spare change but don't know where to start? There's an app for that Mitt Romney says a billionaire tax will trigger demand for these two assets — get in now before the super-rich swarm

Farmland

Agriculture and bitcoin don’t have much in common. Bitcoin was created in 2009 while agricultural communities began to form about 10,000 years ago. Buffett isn’t known for being an agricultural investor, but he sees value in an asset class that’s critical to the sector — farmland. His point is if you buy farmland, you hold a tangible asset that produces food. “If you said, for a 1% interest in all the farmland in the United States, pay our group $25 billion, I’ll write you a check this afternoon,” Buffett says. Of course, you don’t need to have $25 billion to invest in U.S. farmland. Publicly traded real estate investment trusts — that specialize in owning farms — allow you to do it with as little money as you’re willing to spend.

Story continues

Gladstone Land (LAND), for instance, owns 169 farms totaling 115,000 acres. It pays monthly distributions of $0.0458 per share, giving the stock an annual dividend yield of 2.7%.

How difficult is forex?

There is a steep learning curve and forex traders face high risks, leverage, and volatility. Perseverance, continuous learning, efficient capital...

Last updated Aug 2, 2019

What is the fastest try scored in rugby?

VULA MAIMURI – 12 MAY 2001 – 12 SECONDS The fastest try in a rugby union Super Rugby match is 12 seconds and was achieved by Vula Maimuri for the...

Last updated Jan 29, 2018

Promotion

Then there’s Farmland Partners (FPI), a REIT with a farmland portfolio of 190,000 acres and an annual dividend yield of 1.8%. Plus, online crowdfunding platforms allow you to buy pieces of real estate, including farmland. With inflation running hot, the prices of agricultural commodities including corn and soybeans are soaring to new highs.

Apartments

Apartment buildings are another asset that Buffett wouldn’t mind owning at the right price. “[If] you offer me 1% of all the apartment houses in the country and you want another $25 billion, I’ll write you a check. It’s very simple,” the legendary investor says. Whether the economy is booming or in a recession, people need a place to live. And with real estate prices rising to unaffordable levels in many parts of the country, renting has become the only option for many people. You can always buy an apartment building yourself, find tenants and collect the monthly rent checks. Of course, apartment-focused REITs can do that for you. For instance, Camden Property Trust (CPT) owns, manages, develops and acquires multifamily apartment communities. It has investments in 171 properties containing 58,433 apartment units across the U.S. and offers an annual dividend yield of 3.3%. Essex Property Trust (ESS) invests in apartments primarily on the West Coast. The REIT currently yields 4.1%, backed by its ownership interest in 253 apartment communities — in California and Seattle — totaling approximately 62,000 units.

The bottom line

Buffett prefers farmland and apartment buildings to bitcoin for a very simple reason: They produce something. “The apartments are going to produce rent, and the farms are going to produce food.” Bitcoin boasts exciting long-term upside potential. But for risk-averse investors who’d like to sidestep as much volatility as possible, sticking to productive assets is a prudent idea.

What to read next

You’re probably overpaying when you shop online — get this free tool before Black Friday Not living their life to impress others’: Here are the top car brands that rich Americans earning more than $200K drive most — and why you should too This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

finance.yahoo.com - Warren Buffett says he doesn't own bitcoin because 'it isn't going to do ...

Why do most people quit sport?

Performance pressure is the number one reason why elite participants dropout (Butcher, Lindner & Johns, 2002). This is often linked with injuries...

Last updated May 5, 2022

Are Lucky 15s worth it?

Lucky 15s are good options for punters who are looking to widen the net with their predictions. They offer more security than many kinds of bets...

Last updated Jul 15, 2018

Promotion

How do you do predictive magic?

How to Perform the Magic Number Prediction Trick Pick a number between two and nine. ... Take the number that you've chosen and multiply it by...

Last updated Mar 21, 2022

Promotion

What is the number 1 crypto wallet?

Best Hardware Crypto Wallet: Ledger Nano S Plus. Why we chose it: We chose Ledger Nano S Plus as the best crypto hardware wallet because of its...

Last updated Apr 15, 2021