Buffett stays buoyant as Bitcoin plunges 20% — here are the top 3 stocks he’s holding instead
As a value investor, Warren Buffett loves to buy quality assets on the cheap. But there’s one beaten-down asset he won’t be picking up anytime soon: Bitcoin.
The price of the world’s largest cryptocurrency dropped more than 20% over the past month to around $48,850. That could be an opportunity for curious investors standing on the sidelines.
Plenty of investing icons, such as Cathie Wood and Kevin O’Leary, have been proponents of Bitcoin. But Buffett, arguably the most famous investor of our time, is not a fan.
“I don’t have any bitcoin. I don’t own any cryptocurrency; I never will,” the billionaire told CNBC last year. He earlier explained to Yahoo Finance that when you buy crypto, “you don’t have anything that is producing anything.”
In other words, Buffett likes assets with clear, material use. Take a look at the top three holdings of his company Berkshire Hathaway — and if none of those appeal, plenty of alternative investments have inherent value, too.
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Apple is by far Buffett’s largest holding, accounting for more than 40% of Berkshire’s portfolio by market value.
One of the reasons behind that concentration is the sheer increase in the tech giant’s stock price. Over the past five years, Apple shares have surged more than 480%.
Earlier this year, management revealed that the company’s active installed base of hardware has surpassed 1.65 billion devices, including over 1 billion iPhones. But the company does more than just making smartphones and computers; it has built an ecosystem.
While competitors offer cheaper devices, many consumers don’t want to live outside Apple’s network of highly compatible products and services. That means, as inflation spikes, Apple can pass higher costs to its global consumer base without worrying as much about a drop in sales volume.
The business has been growing at a commendable pace. In the September quarter, revenue surged 29% year-over-year to $83.4 billion.