Warren Buffett, the legendary investor who once called Bitcoin “rat poison squared,” has made a surprising pivot in his investment portfolio. Berkshire Hathaway, his conglomerate, disclosed that it had sold large stakes in major banks including Goldman Sachs, JPMorgan Chase, Wells Fargo, and PNC, while acquiring a position in Barrick Gold, one of the world’s largest gold miners. The move signals a notable shift in Buffett’s long-standing disdain for gold as an asset class.
From “Rat Poison” to Gold Stocks
Buffett has historically dismissed gold as an unproductive investment, famously saying it has no utility compared to productive businesses. However, the August 2020 filing revealed Berkshire Hathaway bought roughly $560 million worth of Barrick Gold shares. The price of gold had recently surged above $2,000 per ounce, reflecting increased inflation worries. Many interpret the move as Buffett hedging against potential inflation sparked by massive central bank stimulus.
In stark contrast, Buffett remains hostile toward Bitcoin. In 2018, he labeled it “rat poison squared.” Even after Tron founder Justin Sun gifted him a Bitcoin stored on a Samsung Galaxy Fold phone in early 2020, Buffett promptly donated the cryptocurrency to charity, reiterating that he would never personally own Bitcoin.
Crypto Community: Next Stop Bitcoin?
The gold shift has reignited debate over whether Buffett could eventually change his stance on Bitcoin. Jason Williams, co-founder of Morgan Creek Digital, tweeted: “Buffett sold banks and bought gold. He will buy bitcoin soon.” Though many on social media doubt Buffett will ever touch BTC due to his pride and lack of tech understanding, others believe he may already be secretly invested.
Max Keiser, a prominent Bitcoin advocate and television personality, issued a bold prediction: “Warren Buffett will start panic-buying bitcoin at $50,000, just like Peter Schiff.” Keiser argues that Buffett’s gold purchase is a tacit admission that inflation is eroding fiat purchasing power, and Bitcoin — as a superior digital store of value — will ultimately attract the same capital. He expects Buffett to rush in once Bitcoin reaches the $50,000 threshold.
Gold Bug Schiff Cheers the Shift
Peter Schiff, the longtime gold bug and Bitcoin skeptic, praised Buffett’s gold stock acquisition. “Warren Buffett knows inflation is a tax. If you don’t want to pay the tax, buy gold or gold stocks, just like Buffett did,” Schiff tweeted. However, Schiff remains dismissive of Bitcoin, insisting it lacks intrinsic value.
While opinions remain divided, the fact that the Oracle of Omaha has broken his anti-gold stance provides a powerful narrative for Bitcoin proponents. With unprecedented monetary expansion underway, more traditional investors may eventually follow the same path — from gold to Bitcoin.