In November 2019, the planned lunch between Warren Buffet and Justin Sun was canceled. When questioned about the issue, Sun claimed lives were at risk. However, the meeting has finally gone down. Why might pitching Warren Buffet cryptocurrency make little sense?
Why the Meeting Mattered
Warren Buffet is one of the most well-known investors in the financial market. He is also one of the most prominent critics of Bitcoin. Buffet is amongst the richest men in the world and the head of Berkshire Hathaway.
Some of his most famous lines when discussing Bitcoin were that it was as valuable as a court button and that it was “rat poison squared.” Additionally, Buffet has said that Bitcoin was a bubble. His sentiments about Bitcoin have not changed. However, his stance on blockchain technology has softened and he now believes the technology has value in today’s world.
When it was revealed that he was going to meet Justin Sun, it caused a lot of excitement inside and outside the crypto community. However, the meeting seemed like it would never take place due to scheduling conflicts, medical issues, and many other reasons. The meeting finally took place on Thursday, February 6, 2020.
Details of the Meeting
Justin Sun took to twitter to tell his followers about the meeting. In the twitter thread, where he also posted a picture of himself and four others standing next to Buffet, he revealed what happened. Sun revealed there were six attendees at the dinner. Those in attendance included Yoni Assia, the eToro CEO, Chris Lee, the Huobi CFO, Litecoin founder Charlie Lee, and Helen Hai form the Binance Charity Foundation.
The highlight of the meal was not the food, it was the discussion. Justin Sun and his crew spent the time trying to convince Buffet of the potential benefits of crypto. To try to convince Buffet, Sun did several things. He first presented him with a Samsung Galaxy Fold that contained a Bitcoin in it. The Galaxy Fold comes with a blockchain wallet for select markets. Other gifts included two Samsung Galaxy Fold devices with Tron built into them. The two devices contained 1,930,830 TRX worth around $43 thousand. Additionally, Sun presented Buffet with a paper cutting of a rat, in celebration of the Chinese New Year, and a bronze horse.
While Buffet seemed impressed by the gifts, he did not appear to have been moved on his stand on BTC. Buffet said he did not think that Bitcoin was a proper investment yet. He even jokingly told Sun that when his grandson inherited Buffett's billions, he would rather have it in dollars and not Bitcoin. While he was not able to convince Buffet, Sun left the dinner feeling quite happy. He tweeted that Buffet was full of life and energy. Sun thanked him for the lessons learned and the consul.
Why Warren Buffet Might Not Be The Best Person To Pitch Crypto
Despite Warren Buffet being a prominent figure in the investing space, people also have to take his age into consideration. Warren Buffet has claimed multiple times that he still uses a flip phone. With this being said, it seems like Warren never had much interest in the progression of tech. If you take a look at Warren Buffets investment approach, you could further argue this theory. Warren Buffets impressive portfolio returns over the years have come from a “value investing” approach. The point of value stocks is mitigating risk and accumulating wealth long-term through stable growth and dividends. Digital assets like Bitcoin are sure to create uncertainties with Warren because they definitely go against his investment approach.
If you take a look at his recent portfolio holdings that were displayed on CNBC for Warren Buffets "Berkshire Hathaway", you will see that Warren is not tech heavy whatsoever. He’s heavy in value stocks that historically have low volatility. Everything about Bitcoin goes against his approach. Warren Buffet is a professional money manager and understands risk. As he gets older in age, his risk tolerance essentially goes down. That's why nothing positive may come out of this meeting other than news headlines. It's hard to believe Warren Buffet will all of a sudden change his life long investment approach and allocate Bitcoin into the mix.....
High Profile Critics Still Exist
There are still many high profile critics of crypto in the world. One of them is Trump, who once said he believed that only criminals were interested in crypto. Another person who has no faith in crypto is Ray Dalio, a prominent Wall Street investor. When many are still skeptical about Bitcoin, what is clear is that many hope that Bitcoin will improve and become an acceptable investment.
Image Source: Shutterstock