For billionaire Warren Buffett, one of the richest persons in the world and arguably one of the greatest stock investors, the recent craze over bitcoin and other cryptocurrencies is not going to end well and will surely “come to a bad ending”.
He revealed this during an interview with TV network CNBC, when asked what his opinion was on cryptocurrencies.
Here are highlights of the interview, focusing on Warren Buffett’s take on bitcoin trading and investing in cryptocurrencies.
“Bad ending” for bitcoin and cryptocurrencies
“In terms of cryptocurrencies, generally, I can say almost with certainty that they will come to a bad ending.
When it happens or how or anything else, I don’t know.
If I could buy a five-year put on every one of the cryptocurrencies, I’d be glad to do it but I would never short a dime’s worth,” Buffett says.
On trading bitcoin or taking a short position on cryptocurrencies
He was asked: “Have you thought about trading the futures, to take a negative position on bitcoin?”
“No. We don’t own any, we’re not short any, we’ll never have a position in them.
I get into enough trouble with the things I think I know something about. Why in the world should I take a long or short position in something I don’t know anything about?”
Buffett’s focus is on 8 or 10 companies with “decent businesses”
“We don’t have to know what cocoa beans are gonna do, or any cryptocurrencies. We just have to focus on eight (8) or ten (10) stocks. The business, basically, that we think are decent businesses.
I think what’s going on definitely will come to a bad ending. I mean you’ve got virtually everybody (on it). I have eleven schools coming on Friday, and the questions will be on Bitcoin and I won’t know the answers,” he explains.
“It would be much more interesting to the audience that we were going to issue a whole new series of cryptocurrencies tomorrow but, no, we aren’t, believe me.
We don’t own any, we’re not short on any, and we’ll never have a position in them,” ends Buffet.
Watch the CNBC video interview of Warren Buffet here:
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