Berkshire Hathaway Plummets 99% Against Bitcoin Since 2015
3 min read
Berkshire Hathaway Plummets 99% Against Bitcoin Since 2015
On June 3rd, Berkshire Hathaway’s stock, BRK.A, encountered a significant but temporary plunge due to a technical malfunction on the New York Stock Exchange (NYSE). This malfunction led to Berkshire shares mistakenly appearing to fall by nearly 100%, prompting the NYSE to temporarily halt trading in several prominent stocks to resolve the issue. Near the close of trading that day, the NYSE declared that it would swiftly cancel the erroneous trades that occurred because of the technical mishap. This event, Spotlighted a deeper issue regarding Berkshire Hathaway’s stock’s substantial underperformance compared to Bitcoin over the past decade, absent any glitches.
Berkshire Hathaway’s stock has dramatically declined in value relative to Bitcoin since 2015. The conversion rate went from approximately 1,000 Bitcoins (BTC) being worth one BRK.A share to only about 9.15 BTC per share. This stark contrast highlights Bitcoin’s impressive performance against BRK.A and its major stock holdings, even though Warren Buffett, the owner of Berkshire Hathaway, has been a well-known critic of Bitcoin, famously calling it “rat poison squared.”
Financial analyses suggest that integrating even a modest portion of Bitcoin into Berkshire Hathaway’s robust portfolio could have significantly enhanced its returns. For instance, the Nakamoto Portfolio simulator demonstrates that adding just 1% Bitcoin to Berkshire’s portfolio—which includes top holdings like Apple, Bank of America, and American Express—could have increased returns from 214% to 240% over a five-year adjusted period. More aggressive allocations, such as 5-10% Bitcoin, could have yielded exceptional returns of 328-410% within the same timeframe.
Despite Warren Buffett’s notorious skepticism toward Bitcoin, the cryptocurrency has emerged as one of the most valuable assets worldwide. As of June 4th, Bitcoin’s total market capitalization was around $1.36 trillion, ranking it as the world’s ninth-largest asset by valuation. This places Bitcoin ahead of significant entities such as Meta Platforms, with a market cap of $1.20 trillion, and Berkshire Hathaway, which stands at approximately $899.36 million.
Bitcoin’s valuation is anticipated to continue rising over the coming months and years, positioning it as an increasingly appealing alternative to traditional safe havens like gold. Currently, gold’s market cap sits at roughly $15.8 trillion. According to veteran trader Peter Brandt, Bitcoin has the potential to grow by 230%, reaching a new high where one BTC is equivalent to 100 ounces of gold. Such a surge would propel Bitcoin above silver’s market cap of $1.68 trillion.
The incident on June 3rd was not just a momentary technical glitch; it brought to light the robust performance of Bitcoin relative to traditional stock portfolios. This moment has encouraged investors to re-examine the potential benefits of diversifying into cryptocurrencies, even in portfolios managed by stalwarts like Warren Buffett.
The financial landscape continues to evolve as major assets like Bitcoin gain more acceptance from both individual and institutional investors. These dynamics underscore the need for even the most seasoned investors to remain open to emerging technologies and asset classes that could enhance portfolio performance.
The brief technical issue with Berkshire Hathaway’s stock on the NYSE inadvertently highlighted the broader market dynamics and the transformative impact that Bitcoin has had over the past decade. This incident serves as a reminder of the changing investment environment and the potential rewards of diversifying into revolutionary assets like Bitcoin.
It’s crazy that a single glitch can cause such chaos! This really undermines confidence in traditional markets.
This article made me reconsider my investment strategy. Maybe it’s time to diversify more! 💡🪙🔀
A minor technical issue turned into a major lesson in diversification! 🌐📊
This just shows the rigidity of traditional markets. A glitch brings everything down. You never see this with decentralized assets like Bitcoin.
Bitcoin overshadowing giants like Meta and Berkshire? The future is here!
The article highlights the changing tides in investment strategies so well!
Berkshire Hathaway should have diversified into Bitcoin earlier. Ignoring it while calling it ‘rat poison squared’ seems pretty shortsighted now.
The article was a refreshing take on traditional vs emerging assets. Truly thought-provoking!
Glad the NYSE canceled those erroneous trades swiftly. Efficiency matters!
A momentary glitch with lasting insights – such an informative read! 🌟📊
The fact that a glitch can cause such massive disruptions highlights the need for better systems. NYSE needs an overhaul!
Incredible to see how one technical malfunction can shed light on broader financial trends. 📉🔍✨
Bitcoin’s growth has been nothing short of phenomenal. This article puts it in perspective! 💎🙌
Technical glitches like these damage the credibility of the whole financial system. Fix your infrastructure, NYSE!
Warren Buffett might call it rat poison, but Bitcoin’s stats are hard to ignore!
Berkshire Hathaway versus Bitcoin – a match I didn’t see coming, but super enlightening! 🥇📉
Seems like the ‘rat poison squared’ is outpacing Berkshire by miles! Time to rethink that stance, Mr. Buffett.
This article was eye-opening! It really shows how quickly market perceptions can shift.
Seeing Berkshire’s stock misrepresented that drastically because of a technical error is alarming. Such malfunctions shouldn’t happen.
Technical glitches revealing hidden market dynamics what a twist!
Buffett’s old-school thinking is hurting Berkshire. Time to adapt or get left behind!
A 100% plunge because of a malfunction? That’s unacceptable and highlights deeper flaws within the NYSE. 🤦♂️🔧
Just imagine the gains Berkshire could’ve made if they’d included Bitcoin in their portfolio. Ignoring crypto is a big miss.
Its wild to think that just adding a little Bitcoin could have improved Berkshire’s returns so significantly!
It’s amazing to see Bitcoin’s rise against traditional giants like Berkshire Hathaway. Times really are changing! 🚀💰
Ignoring Bitcoin has clearly been a costly mistake for Berkshire Hathaway. Diversification is key, even for giants like Buffett.
Buffett missing out on Bitcoin’s gains is a huge oversight. How could you not see the potential with those returns staring you in the face?
Even with the technical glitch sorted out, Berkshire Hathaway’s underperformance compared to Bitcoin is glaring. Time to rethink investment strategies, Warren.
This article is a great reminder of the fast-evolving financial landscape. 📉📈
Wow, who would’ve thought a technical glitch could lead to such a deep discussion on Bitcoin vs Berkshire?
It’s frustrating to see a company like Berkshire Hathaway resist change and miss out on major opportunities like Bitcoin.
A single technical issue should not have this amount of impact. This was a massive failure from NYSE. 📉💔
Who knew a technical malfunction would open up such an informative debate on investment strategies?
The way the NYSE handled the glitch was commendable. Swift actions!
NYSEs quick response was impressive but the bigger lesson here was about diversification!
Reading about the potential of Bitcoin versus traditional stocks was so enlightening. 🚀💵
A technical glitch exposing deeper financial trends fascinating read!
Technical glitches can be stressful, but this one revealed so much about market dynamics!
This piece beautifully underscores the importance of staying updated with emerging technologies.
Even a minor allocation to Bitcoin could have done wonders for Berkshire’s returns. Amazing!