NAIROBI (CoinChapter.com) – On June 3, a technical glitch on the New York Stock Exchange (NYSE) caused a temporary but dramatic drop in Berkshire Hathaway’s stock (BRK.A), making it appear to have fallen by almost 100%. The event, while short-lived, sparked widespread discussion and highlighted a significant missed opportunity for renowned investor, Warren Buffett. Buffet’s vocal criticism of Bitcoin is well-known, calling it “Rat poison squared”.
The incident, though quickly rectified, sparked jokes and discussions about the company’s performance. Tom Honzik posted,
“People have been joking around today about Berkshire Hathaway plummeting 99% due to an exchange glitch.” However, he added a twist: “But this is no joke, it’s literally down 99% since 2015, when measured in bitcoin.”
Tom Honzik Said
Crypto analyst Yashu Gola further contributed to the discussion, stating, “#BerkshireHathaway gains with and without Bitcoin holdings. $BTC ain’t a ‘rat poison squared,’ after all.” Gola’s analysis implies that not only has Bitcoin outperformed Berkshire Hathaway but that it could have potentially augmented the company’s returns.
Bitcoin’s Potential Boost to Berkshire Hathaway’s Portfolio
Since 2015, Berkshire Hathaway’s stock has underperformed significantly compared to Bitcoin. While BRK.A saw a modest increase of roughly 114%, Bitcoin experienced an astonishing surge of approximately 600% during the same period. This stark contrast has not gone unnoticed by the crypto community. Many have pointed out the irony given Buffett’s previous dismissal of Bitcoin as “rat poison squared.”
According to the Nakamoto Portfolio simulator, adding just 1% Bitcoin to Berkshire Hathaway’s existing portfolio could have increased five-year returns from 214% to 240%. This portfolio includes top stock holdings like Apple, Bank of America, and American Express.
The chart shows Apple Inc. (AAPL) as the largest holding at 49.21%, with a return of 474% and a sharp ratio of 0.86. In contrast, Bitcoin (BTC) shows a staggering return of 5,168% and a sharp ratio of 0.99, despite its higher volatility.
More interestingly, allocating 5%–10% to Bitcoin could have achieved impressive returns of 328%–410% for Buffett in the same period. This data challenges his skepticism towards cryptocurrency, showing its potential to enhance even traditional investment portfolios.
In conclusion, while the NYSE glitch causing Berkshire Hathaway to plummet 99% was a technical error, its 99% drop against Bitcoin since 2015 is real. This incident not only highlights market glitches but also sparks a conversation about the evolving role of cryptocurrencies in traditional investment strategies.
