Berkshire Hathaway’s stock, BRK.A, encountered a momentary but significant drop on June 3 due to a technical malfunction on the New York Stock Exchange (NYSE). This glitch caused Berkshire shares to appear as if they had plummeted by nearly 100%, leading the NYSE to halt trading in various high-profile stocks in order to rectify the situation.
At the end of the trading day, the NYSE announced that it would promptly cancel the erroneous trades resulting from the earlier technical glitch. Nevertheless, this incident has drawn attention to the fact that Berkshire Hathaway’s stock has significantly underperformed Bitcoin (BTC) over the past decade, even without any glitches.
Since 2015, Berkshire Hathaway’s stock has fallen by almost 100% compared to Bitcoin, going from approximately 1,000 BTC to 9.15 BTC.
Interestingly, Bitcoin’s performance against BRK.A and its top stock holdings sharply contrasts with Warren Buffett’s negative views on Bitcoin, which he famously referred to as “rat poison squared.”
According to the Nakamoto Portfolio simulator, even incorporating just 1% Bitcoin into Berkshire Hathaway’s existing portfolio, which includes top stock holdings like Apple, Bank of America, and American Express, could have increased returns from 214% to 240% over a five-year period.
Furthermore, allocating 5% to 10% of the portfolio to Bitcoin could have achieved impressive returns of 328% to 410% for Buffett during the same period.
Despite Buffett’s reluctance towards Bitcoin, the cryptocurrency has become one of the most valuable assets worldwide. As of June 4, Bitcoin’s net market capitalization stood at around $1.36 trillion, making it the ninth-largest asset in terms of valuation. Interestingly, BTC surpasses Meta Platforms and Berkshire Hathaway, which have market caps of $1.20 billion and $899.36 million, respectively.
Bitcoin’s valuation is expected to continue growing in the coming months and years as it gains traction as an alternative safe haven compared to gold, which currently has a market cap of $15.8 trillion.
For example, the price of gold, similar to Berkshire Hathaway stock, has dropped by over 99% compared to Bitcoin since 2015.
According to experienced trader Peter Brandt, Bitcoin is likely to grow by 230% and reach a new record high of 100 ounces of gold per BTC. This could potentially push its market cap above silver’s $1.68 trillion.
It is important to note that this article does not provide investment advice or recommendations. Every investment and trading decision involves risks, and readers should conduct their own research before making any decisions.