Despite the strong rebuke of Buffett for cryptocurrency and fintech, several investments in the amount of $ 300 million in two payment services companies imply that Berkshire Hathaway seems to be entering the cryptocurrency market.
WSJ’s publication last Tuesday claimed that Warren Buffet’s multinational investment conglomerate, Berkshire Hathaway, reportedly invested about $ 600 million in two fintech companies targeting emerging markets.
Warren Buffett, also known as an ardent opponent of cryptocurrency, was remembered by the community by saying: “Bitcoin is not an investment, because it does not produce anything.” He further said: “Rat poison is neither a currency nor a means of investing.” Based on Buffett’s relationship, it can be assumed that Todd Combs, one of the two managers of the Berkshire portfolio, led the latest investments.
Berkshire, in August, reportedly invested $ 300 million in India’s largest mobile payment provider, Paytm. Last week, the company reportedly spent $ 300 million to buy IPO shares in the Brazilian payment service StoneCo. These investments raise awareness because investors think which direction a company would prefer in the absence of Buffett since it is believed that the cost of Berkshire Hathaway shares should be grateful to the “oracle” of Omaha.
Moreover, Buffett is well known for his investments in companies such as Phillips 66, Bank of America, Wells Fargo and Coca-Cola. Current investments in fintech companies demonstrate an uncharacteristic deviation from traditional Berkshire investment solutions.
Buffett has already noted that investments in the technology sector are excluded from his competence. On the other hand, Combs has sufficient experience in investing in the technology sector, since it has previously managed a hedge fund with some significant investments in this sector and currently holds a seat on the board of directors of Paytm.
Currently, Berkshire Hathaway has $ 711.9 billion at AUM (Assets Under Management), and these recent investments show that Berkshire is expanding its portfolio distribution.
