The Oracle of Omaha’s investment company offloaded stock in more traditional financial companies – selling US$1.8bn and US$1.3bn of Visa and Mastercard stock
Warren Buffet’s Berkshire Hathaway (NYSE:BRK) has reportedly purchased US$1bn worth of stock in Nubank, a Brazilian fintech bank that focuses on cryptocurrencies like Bitcoin.
It could appear a curious move for Buffett and his cautious ‘value-investing’ approach, especially given that he has been on the record in criticism against crypto.
In 2020 Buffett critiqued Bitcoin insisting “cryptocurrencies basically have no value and they don’t produce anything,” before saying “I don’t have any cryptocurrency and I never will.”
Buffett traditionally invests in companies that show robust earnings, have potential for long-term growth, and distribute earnings to shareholders, Investopedia said.
He specialises in business, management, financial measures, and value-related companies. Typically buying the big name brands when their valuations have fallen on harder times.
Perhaps it is, then, that Buffett sees a value opportunity in a sector that’s been under fire in recent months in which time the industry has about halved in value.
“The Nubank investment can be tagged as Buffett’s way of supporting the fintech/crypto world without taking back his criticisms of the past,” Greg Waisman, co-founder and chief operating officer of crypto wallet service Mercuryo, said in comments to crypto news site Cointelegraph.
Waisman added that the Berkshire boss is now backing the “digital currency ecosystem indirectly.”