Berkshire Hathaway

Warren Buffett’s Berkshire Hathaway Is Ready To Join The Crypto Party

In spite of Buffett’s strong reproach for cryptocurrency and fintech, two $300 million investments into two fintech payment corporations imply that Berkshire Hathaway may seem to join the cryptosphere.

The WSJ, on Tuesday, claimed that Warren Buffett’s multinational investment conglomerate, Berkshire Hathaway has reportedly invested around $600 million in two fintech firms focused on emerging markets.

Warren Buffett, a notorious no-coiner, has been infamously vocal about his reproach for cryptocurrency and has gone on the record as stating, “Bitcoin isn’t an investment since it doesn’t produce anything”. He further said, “Rat poison is neither a currency nor a way of investing”. Therefore, it makes a proper sense, according to him, that the most recent investments were managed by Todd Combs who is one of the two portfolio managers of Berkshire.

Berkshire, in August, is said to have invested $300 million in India’s largest mobile-payments provider ‘Paytm’. Last week, the firm reportedly spent $300 million for purchasing IPO shares in Brazilian payments processor StoneCo. These investments raise awareness as investors have considered which direction the firm will prefer in the absence of Buffett since it’s considered that shares of Berkshire Hathaway carry a thank to the ‘oracle’ of Omaha’s excellent leadership.

Moreover, Buffett is well-recognized for making his investments primarily in blue-chip companies like Phillips 66, Bank of America, Wells Fargo and Coca-Cola. The present investments into the fintech companies show an uncharacteristic deviation from Berkshire’s traditional investment choices.

Buffett has already remarked that tech sector investments are eliminated from his realm of expertise. On the other hand, Combs has adequate experience investing in the tech sector as he previously managed a hedge fund with some significant investments in the sector and currently hold a spot on the Paytm board.

Presently, Berkshire Hathaway has $711.9 billion in AUM (Assets Under Management), and these recent investments show that Berkshire is broadening its portfolio’s sector allocations.