Warren Buffett dubbed the “Oracle of Omaha” for knowing things before the rest of the market, just pulled a $1 billion crypto investment through his company Berkshire Hathaway, despite having previously voiced his disapproval of cryptocurrency.
With an SEC filing earlier this week, Berkshire Hathaway made its crypto investment public. It was announced that Buffett’s firm has invested $1 billion in Nubank, a Brazilian digital bank that is the largest of its kind in Latin America. An action that shows a reversal of the company’s leadership’s previous declaration on diversification.
Nubank is a Neobank, which is a form of the bank that operates outside of the traditional banking system’s rules. Nubank, unlike most banks, accepts cryptocurrency and even offers Bitcoin exchange-traded funds (ETFs).
Warren Buffet, the chairman and CEO of Berkshire Hathaway, has previously referred to cryptocurrency as “rat poison” and an unproductive asset with “no unique value at all.”
Also, Buffett’s longstanding colleague and vice chairman of Berkshire Hathaway, Charlie Munger, hasn’t shied away from expressing his strong views on Bitcoin.
Munger recently remarked that he wishes cryptocurrencies had “never been invented,” and that he would not want any cryptocurrency traders marrying into his family.
Munger has a particular dislike for Bitcoin, the most widely traded cryptocurrency, which he once described as “disgusting and contrary to civilization’s interests.” Munger has backed China’s decision to prohibit Bitcoin trade in the nation and has urged the US to follow suit.
Last year, Berkshire increased its crypto investments, it also reduced its holdings in other, more traditional financial assets.
Berkshire Hathaway announced that it had lost nearly $3 billion in its Visa and Mastercard shares in the same SEC filing that revealed the $1 billion investment in Nubank.
While Buffett and Munger may have a personal dislike for bitcoin, they may see an entirely different kind of opportunity in Nubank and other digital financial service companies.
Berkshire’s investment in crypto might also indicate that the Oracle of Omaha has a different perspective on cryptocurrencies and will be investing in crypto coins in the near future.
