Arnold Schwarzenegger, the iconic Hollywood star and former Governor of California, has made it clear that he will not be investing in Bitcoin or any other cryptocurrencies. In an interview with the New York Times published Thursday, the "Terminator" actor stated: "No, I don't invest in them. I am like Warren Buffett. I don't invest in things I don't understand."
The 'Circle of Competence' Philosophy
Schwarzenegger's approach mirrors Buffett's legendary investment principle of operating strictly within one's "circle of competence." The Berkshire Hathaway CEO has long warned against investing in assets that are difficult to comprehend, and Bitcoin—with its complex blockchain technology and extreme price volatility—falls squarely outside that circle for both men.
The former governor's alliance with Buffett is far from new. During his 2003 campaign for California governor, Schwarzenegger appointed Buffett as his senior economic and financial advisor. The two maintained a close relationship throughout Schwarzenegger's tenure (2003–2011), and later when he hosted "The New Celebrity Apprentice" in 2016, Buffett again served as an advisor. Schwarzenegger has publicly called Buffett "the greatest investor ever, my mentor, and my hero," adding that "Warren has a common-sense approach to business issues and an integrity that is unmatched."
Buffett and Munger's Harsh Criticism of Bitcoin
Buffett's disdain for Bitcoin is well-documented. In 2018, he famously labeled it "rat poison squared," building on his longtime partner Charlie Munger's earlier comparison of cryptocurrency to "rat poison" and "turds." At Berkshire Hathaway's annual shareholder meeting in early May 2021, Buffett refrained from directly attacking Bitcoin to avoid alienating investors who hold it, but Munger was characteristically blunt: "I hate the Bitcoin success. The whole damn development is disgusting and contrary to the interest of civilization."
Schwarzenegger fully endorses this view. He reiterated during the interview that he prefers to invest in assets he understands—real estate, stocks, and businesses—rather than cryptocurrencies. "Warren told me, if you don't understand something, don't touch it. That's how I see Bitcoin," he said.
A Mentor-Mentee Relationship Spanning Decades
Schwarzenegger's deference to Buffett goes beyond investment philosophy. The two have maintained a mentor-mentee relationship for nearly two decades. When asked whether he would reconsider his stance if Bitcoin became more mainstream, Schwarzenegger was firm: "I follow Warren's advice. If he says it's rat poison squared, I believe him."
The actor's comments come amid a period of heightened interest in cryptocurrencies, with Bitcoin reaching new all-time highs in early 2021 before experiencing significant pullbacks. While many celebrities—from Elon Musk to Mark Cuban—have embraced crypto, Schwarzenegger's allegiance to Buffett's old-school value investing remains unshaken.
Conclusion: Schwarzenegger's decision to steer clear of Bitcoin reflects a conservative, value-driven investment strategy that prioritizes understanding over hype. Whether this approach will prove wise in the long run remains to be seen, but for now, the "Terminator" has chosen to terminate any plans to enter the crypto space. Do you think Schwarzenegger should follow Buffett's strategy and stay away from Bitcoin? Share your thoughts in the comments below.